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Which statement supports the term "open item management" A. Items in accounts with open item management can only be indicated as open and not cleared B. ... [Show More] Accounts with open item management must have line item display activated C. Once open item management has been activated it cannot be cancelled D. Open item management should be activated for bank accounts Which statement supports the term "open item management" B. Accounts with open item management must have line item display activated Which of the following statements support the definition of account group A. Determines in which number range the GL accounts number must reside B. Number intervals for GL accounts master record must be the same as used for accounts receivable and accounts payable C. When creating a new GL account, the account group is an optional entry D. The account group controls the appearance of the Chart of Accounts segment and Company code segment of a GL account Which of the following statements support the definition of account group A. Determines in which number range the GL accounts number must reside What is the maximum number of line items FI document can have A. Two B. 999 C. 1 D. 100 What is the maximum number of line items FI document can have B. 999 A period of a document is defaulted from A. Document Date B. Document entry C. Posting Date D. Base line Date A period of a document is defaulted by C. Posting Date What is the maximum number of special periods a company can have? A. Max 12 B. Max 4 C. Max 16 What is the maximum number of special periods a company can have? B. Max 4 Document type be assigned to A. Company code B. Client C. Plant Document type be assigned to A. Company code Cross company code documents generates A. more than one accounting document B. More than two accounting document C. Two accounting documents D. None of the statements is correct Cross company code documents generates C. two accounting documents Which type of currency will R/3 always track when posting a document A. Local currency B. Group currency C. Transaction currency D. Local and transaction currncy Which type of currency will R/3 always track when posting a document? D. Local and transaction currency Which statement supports that a non-open item account can be changed to open item A. It can be done if and only if B. The account should have a zero balance C. It can be done only if the account is line item managed D. It cannot be done Which statement supports that a non-open item account can be changed to open item B. the account should have a zero balance Can a non-Line item account be changed to line item A. It can be done only if the account is open item managed B. The account should have a zero balance C. It can be done even though account has balance D. It cannot be done Can a non-Line item account be changed to line item C. it can be done even though account has balance Chart of accounts is at which level A. Company code B. Client level C. Controlling area level D. operating concern level Chart of accounts is at which level B. Client level Account can be created at which level A. company code level B. Chart of accounts level C. At both the levels above stated C. Client level Account can be created at which level C. at both the levels stated above (company code and chart of accounts) Can a split rule be created? A. It cannot be created B. It can be created Can a split rule be created? B. It can be created We can re-print cheque without cancelling the original chequ number T/F We can re-print cheque without cancelling the original chequ number F We can calculate interest on bank GL account line item wise T/F We can calculate interest on bank GL account line item wise F We can assign one lockbox to more than one house bank T/F We can assign one lockbox to more than one house bank F In bank reconciliation we can assign more than one posting rule to a business transaction T/F In bank reconciliation we can assign more than one posting rule to a business transaction F In bank reconciliation, for business transaction with + sign and with - sign we can assign different posting rules T/F In bank reconciliation, for business transaction with + sign and with - sign we can assign different posting rules T In bank reconciliation, we can post to different bank sub account with help of account modification T/F In bank reconciliation, we can post to different bank sub account with help of account modification T In bank reconciliation, posting rule controls document type for posting reconciliation entry T/F In bank reconciliation, posting rule controls document type for posting reconciliation entry T In bank reconciliation, we can clear bank sub account by making necessary setting in posting rule T/F In bank reconciliation, we can clear bank sub account by making necessary setting in posting rule T We can post cross-company transactions with cash journal T/F We can post cross-company transactions with cash journal F We can post expense& revenue by giving general ledger number in cash journal T/F We can post expense& revenue by giving general ledger number in cash journal F Bank Chain are made to make payment from one bank T/F Bank Chain are made to make payment from one bank F The parameters does not specify the accounts and document which are to be considered in the payment T/F The parameters does not specify the accounts and document which are to be considered in the payment F The payment program needs the Next Posting date to determine if an open item has to be paid now or during the next payment run T/F The payment program needs the Next Posting date to determine if an open item has to be paid now or during the next payment run T The sequence in which the payment methods are entered in the Payment Parameter reflects their priority T/F The sequence in which the payment methods are entered in the Payment Parameter reflects their priority T All the company codes in the payment run parameteres must be in the same country T/F All the company codes in the payment run parameteres must be in the same country T Which of the following are the steps for Payment program A. Maintaining parameteres B. Proposal Run C. Payment run D. Printing Payment media Which of the following are the steps for payment program? D. Printing Payment Media If invoice documents entered today and having due date tomorrow. How to pick up this invoices in today's payment run A. Putting current date in "documents entered up to field" in the payment parameter B. Putting current date in base line date C. Entering the posting date If invoice documents entered today and having due date tomorrow. How to pick up this invoices in today's payment run A. Putting current date in "documents entered up to field" in the payment parameter What is the segment that makes complete both customer and vendor account? A. client B. company code C. controlling area D. Sales area What is the segment that makes complete both customer and vendor account? B. company code Can we have more than one consolidation unit hierarchy within dimensions? A. Yes B. No Can we have more than one consolidation unit hierarchy within dimensions? A. Yes Can more than 1 Co Cd be assigned to company A. Yes B. No Can more than 1 co cd be assigned to company A. yes Can cost elements be assigned to FS item A. yes B. no Can cost elements be assigned to FS item A. yes Data collection method supported for profit center based consolidation A. Realtime update B. Rollup Data collection method supported for profit center based consolidation B. rollup Consolidation unit can be assigned to A. only one hierarchy B. Multiple heirarchey Consolidation unit can be assigned to B. Multiple heirarchey Currency translation A. all FS items of the cons unit can be converted only at "single currency translation rate" B. Different FS items of the cons unit can be converted using "different currency translation rate" Currency translation B. different FS items of the cons unit can be converted using "different currency translation rate" Balance Carryforward A. statistical items can be carried forward B. Statistical items cannot be carried forward Balance Carryforward A. statistical items can be carried forward Inter-unit eliminations can be A. Both automatic & manual B. Either Automatic & manual Inter-unit eliminations can be A. Both automatic & manual Inter-unit eliminations can be A. in local currency B. in Group currency Inter-unit Eliminations can be B. In Group currency Excise Duty is a A. direct tax B. indirect tax C. both options are wrong D. both options are true Excise Duty is a B. indirect tax Excise Duty is a A. Central Levy B. state Levy C. Municipal Levy D. All options are wrong Excise Duty is a A. Central Levy [Show Less]
SAP FI Financial Accounting, very robust and covers almost all financial business process encountered in various industries. It is one of the widely imple... [Show More] mented modules in SAP SAP CO Controlling, Cost Accounting (CO) module of SAP provides information to managers decision makers to understand where the company's money is being spent. CO helps them to optimize business costs. SAP HCM HR or Human Capital Management (HCM) is also called SAP-HR. SAP HCM consists of sub-modules like Personnel Administration (PA), Organizational Management (OM), Time, Payroll that help in employee management SAP MM MM is Materials Management, consists of several components and sub-components including Master Data, Purchasing, and Inventory SAP QM Quality Management, an integral part of several key business processes of SAP like production, sales, procurement, material management, etc. SAP PP Production Planning, specially designed for integrating different department involved in production and manufacturing. It has various components like Data Center, BOM, Work Center, CRP etc. SAP SD Sales and Distribution, an important module of SAP ERP consisting of business processes required in selling, shipping, billing of a product. The module is tightly integrated with SAP MM & SAP PP. Key sub-modules of SAP SD are Customer and Vendor Master Data, Sales, Delivery, Billing, Pricing and Credit Management. SAP BW Business (Data) Warehouse or SAP BI, a leading data warehousing and reporting tool. It helps convert raw data into information and insights that help improve business margins. SAP Basis a set of programs and tools that act as an interface with Database, Operating system, communication protocols and other SAP modules like FI,HCM, SD etc SAP ABAP Advanced Business Application Programming is the default programming language for SAP applications. You can also use Java to code in SAP SAP CRM Customer Relationship Management, the Market Leader in Customer Relationship Management Software. SAP CRM plays a pivotal role in strengthening customer relationships. Learn more about SAP CRM SAP HANA - High-performance Analytic Appliance, an in-memory computing platform that allows real-time data analysis. Its currently the market leader in BI SAP EC Enterprise Controlling SAP TR Treasury SAP IM Investment Management SAP IS Industries Specific Solution SAP PS Project Systems SAP CAC Cross Application Components SAP SCM Supply Chain Management SAP PLM Product LifeCycle Management SAP SRM Supplier Relationship Management SAP CS Customer Service SAP SEM Strategic Enterprise Management SAP RE Real Estate SAP PM Plant Maintenance SAP FSCM Financial Supply Chain Management SAP XI Exchange Infrastructure SAP LE Logistics Execution SAP APO Advanced Planning and Optimization SAP AFS Apparel and Footwear Solution SAP CC Convergent Charging SAP ITS Internet Transaction Server SAP ICM Incentive and Commission Management SAP KW Knowledge Warehouse SAP MDM Master Data Management SAP SolMan Solution Manager [Show Less]
SAP Systeme, Anwendungen, Produkte in der Datenverarbeitung, or Systems, Analysis and Products in Data Processing What Does ERP Stand for? Enterpr... [Show More] ise Resource Planning - Incredibly large, extensive software packages used to manage a firm's business processes. Standard software packages that must be configured to meet the needs of a company Database programs with the following functions: a. Input b. Storage/Retrieval c. Manipulation d. Output What are the different modules within SAP? - FICO, QM, PS, PM, PP, SD, MM, HR, AM what do all of these stand for? Finance, Controlling, Quality Management, Project Systems, Plant Maintenance, Production Planning, Sales & Distribution, Materials Management, Human Resources, Asset Management. What Year was SAP formed? what company did the original members come from 1972 IBM. ERP Software Benefits Improved process, better decision making, global integration, reduced IT maintenance, real time access to data SAP is a client server architecture SAP transaction based What is the programming code used by SAP? ABAP What is the Z Transaction stand for? Custom Code What is a Client A way to separate data in the system , sometimes a different database or a table entry 13. What is the main screen within the SAP GUI? SAP Easy Access 14. SAP is designed for participants in business processes a. Limited feedback b. Few transactions in one module c. Lots of options d. Power means Complexity e. Intuitive is in the eye of the beholder 15. What is ASUG? SAP UA members are considered licensed customers; they are eligible to join ASUG like any other customer. They are not automatically an ASUG UA member. 16. How to do you access SAP for information? 1. What is the Silo Effect? Focusing on functional objectives without regard to process objectives a. Optimizing functional goals vs. process goals Process execution requires Communication and coordination among functions 2. What are Business Processes a. Sequence of tasks or activities that produce desired outcomes 3. Procurement process Create Purchase Requisition, Create and send purchase order, receive materials receive invoice and send payment 4. Production process Request Production, Authorize, issue raw materials, create product and receive finished goods. 2. Architecture of Enterprise Systems - Client Server & Service Oriented 3. There are 3 layers of the CS Architecture Presentation Layer, Application Layer & Data Layer 4. Enterprise Resource Planning Systems a. Focus primary on internal operations of an organization b. Integrate functional and cross-functional business processes c. SAP is a fully integrated, global ERP system d. Supports multiple languages and currencies 5. SAP's Application Suite a. Enterprise Resource Planning (ERP) b. Supply Chain Management (SCM) c. Supplier Relationship Management (SRM) d. Product Lifecycle Management (PLM) 7. SAP HANA converges database and application platform capabilities in-memory to transform transactions, analytics, text analysis, predictive and spatial processing so businesses can operate in real-time. 9. Organizational Level is the company code a. Central organizational element in financial accounting b. Books are maintained at this level for legal reporting c. Identifies legal entities in an enterprise (Client) d. Legally independent from other companies in the enterprise e. Client can have multiple company codes f. Company code must belong to only one client 10. Organization Level - Plant a. Performs Multiple functions b. Uses many Processes c. Represents factory, warehouse, office distribution center What is Master Data a. Long-term data that typically represent entities associated with various processes? b. Customer, Vendor, Material 12. Material Master is used in numerous processes a. Procurement b. Fulfillment c. Production d. Material planning e. Asset management f. Project systems g. Lifecycle data management 13. What Transaction do you use to create a Purchase Order? a. ME21N / ME22N / ME23N - Purchase Order (Create/change/check) b. ME51N / ME52N / ME53N - Purchase Requisition (Create/change/check) 14. What is the Business Warehouse Where reports are processed for SAP 1. FI / CO are part of the Accounting Process a. Financial accounting (FI) b. Management accounting (CO) 2. Financial Accounting External - Legal reporting - Financial Statements communication to investors 3. Management Accounting Internal - Managing the firm with regard to costs and revenues 4. Key Financial Accounting Processes a. General ledger accounting b. Accounts receivable accounting c. Accounts payable accounting d. Asset accounting e. Bank ledger accounting 1. ERP SIM Game HEC Montreal SIM Game Water ERP Water Natural, ERP Water Carbonated & ERP Water Lemon 2. We Sold a. There were 6 products b. 3 District Marketing accounts c. One Distribution Channel d. We sold in North, West & South region of Europe e. Products were sold in EUROS 3. We focused on the following areas Sales, Procurement & Planning 1. Purchasing Group is usually associated Procurement : a. A buyer or group of buyers responsible for certain materials or groups of materials b. Can be internal to the company or external c. Decide to purchase land, but use a realtor (external purchasing group) to execute the purchase 2. Master Data used in Procurement a. Material Master b. Vendor Master c. Purchasing info record d. Conditions 3. Material Master Views in Procurement a. Forecasting (Material Planning process) b. Sales (Fulfillment process) c. Work Scheduling (Production process) d. MRP (Production process) e. Classification (PLM process) f. Warehouse Management (WM process) 4. Types of Materials in procurement a. Raw b. Finished Goods c. Trading goods 5. Goods Movement Transaction that causes a change in stock status (value or status) a. Categories of Goods Movement b. Specific Movement types 1. Basic fulfillment process includes the following, receive customer PO, Create Sales Order, Prepare shipment (pick and pack), send shipment (ship), create and send invoice and receive payment 3. Sales Area includes, the Sale Org, Distribution channel & division 4. Distribution Chain some master data is maintained in the fulfillment process - they include material master and pricing conditions. 6. Credit Control areas are responsible for the customer credit information and usually centralized. 7. The Customer Master is maintained during the Fulfillment process 8. To update Customer Master Data use the following Transaction code transaction code XD01. 1. The Basic Production Process - request production, authorize production, issue raw materials, create product and receive finished goods 2. What is a BOM Bill of Material 3. BOM's are used in the following areas a. Material planning b. Production c. Procurement d. Product costing 4. GBI Dallas Production Facility includes 4 Storage Areas 5. Elements of the Good Issues Step include Triggers, Data, Tasks & Outcomes [Show Less]
Which of the following determines what a user is allowed to do within the SAP system? User Role The SAP Module that is used for the functions of co... [Show More] st accounting and internal reporting is the CO 00:46 01:29 Which of the following is an inherent weakness of internal control? -Management override of controls; -Collusion amongst people with incompatible duties -Human error The organizational unit that represents the independent legal accounting entity in SAP is the Company Code The Highest level in an SAP instance is the client The application control compares the data entered into a field for a transaction to that in a master record to verify the data entered exists? Validity Check In SAP the process through which the user sets values in tables to cause the system to function in a desired manner is known as? Configuration A field check typically helps enhance which of the following common transaction related objectives? A particular transaction is recorded accurately Application Controls are useful for enhancing the reliability of transaction data and master data true Which of the following are types of data within the SAP system? -Master Data -Transaction Data -configuration Data Master file (Standing Data) & Transaction processing experience within SAP for the following process MM (Procurement/ Purchasing) PP (Production) SD (Sales and Distribution) FI/CO (Financial & Cost Accounting) What is SAP? -SAP is an ERP (enterprise resource planning system) which is highly integrated system that provides: 1)Seamless flow of information across organizational bound 2)Standardized environment that keeps data separate from applications Material Management (MM) (Purchasing) Master Data used (standing data): -Vendors -Materials (Inventories) 1)Raw Materials 2)Trading Goods 3)Finished Goods Material Management (MM) Documents: Bill of Materials ("recipe" Purchase Order Goods Receipt Invoice Other: Reconciliation Accts (ex:Sub Ledgers) SAP updates the G/L in "Real Time" -There is no intermediate recording in journals, Each transaction posted right to ledger. Processing speed of computers allows for this. Material Management(MM01-MM08) -Create Reconciliation Accounts -Create Vendor Master Data -Create Raw Material Master Data -Create Trading Good Master Data -Create Finished Products Master Data link Vendor to Material Material Management(MM09-MM12) -Purchase Requisition -Purchase Order -Goods Receipt -Invoice Receipt Material Management (MM- Procurement Logistic) -Purchasing -Invoice Verification -Inventory -Management -Warehouse Management Client The highest level in a SAP instance. A client is a self-contained unit with a separate set of master records and its own set of configuration tables. An instance (installation) can have more than one client (e.g., a training client, a testing client, and a production client). In using SAP the user logs on to a particular client that usually has a three digit numeric identifier. Company Code Represents an independent legal accounting entity that contains a balanced set of books as required by law or regulation. A client may have more than one company code (e.g. a company code for the US, one for Germany, one for Canada, etc.) Chart of Accounts A list of all accounts in the General Ledger for a company code. Each company code must be assigned one, and only one chart of accounts. However, more than one company code can use the same (i.e., identical) chart of accounts. SAP comes preconfigured with a large number of charts of account. For example, the delivered US chart of accounts is CAUS. Accounts can be added to, deleted from, or modified in the delivered chart of accounts as desired by the user. Passwords: Each user has a unique password. On the initial log in to the system, the user must change a generic delivered password to one chosen by the user. The password must be at least three characters long, cannot begin with a "!" or "?", and the first three characters unique and not contained in the user name. Roles and Profiles: Roles specify the sets of tasks or activities that can be performed by a particular user within the system. A role is assigned to each user. When the user logs on, the system automatically presents a specific menu for that user's assigned role. For example, a receiving clerk should perform only certain tasks within the SAP system. When a receiving clerk logs on, that user's role will define what the user will be allowed to view, create, change, delete, etc. Profiles work in the same manner as do roles to restrict authorization for access to the system. User profiles and roles are entered by system administrators into user master records thus enabling users to access and use specific functions within the system. SAP also produces a separate application enhancement called Governance Risk and Controls, which can identify compatible and incompatible duties with a color coding. This application is not part of the software you are using, but know that organizations use it to properly define roles. Session: Each instance in which a user is connected to the SAP system is known as a session. A user can have up to nine sessions open at any given time (but each session is logged into the same client and company code). Configuration: Configuration is table-driven customization of the SAP system to meet specific customer requirements. In configuration the user sets values in tables to cause the system to function in a desired manner. Configuration is somewhat like setting the defaults in a word process or spreadsheet application. It does not change the underlying source code in the system. In the Classic Rockers case there are no configuration exercises. The case system has been preconfigured. Business Processes A business process can be described as a set of linked activities that transform an input into a more valuable output thus creating value. Types of Data There are three differing types of data within the SAP system: control or configuration data, master data, and transaction data. Control or configuration data include system and technical functions of the SAP system itself. These data drive the logic of the applications within the system and is primarily used for defining the details of business processes Master data represent the various business entities present in the system, both internal and external. For example, master data include internal entities such as the company, a plant, a sales area, a cost center, an account, a material, a routing, a bill of material, or a personnel file. In addition there are external entities that are a part of the system's master data such as vendors, customers, employees, and even competitors. Transaction data describe a business event or may be the result of a business process. For example, a sales order would contain transaction data that have resulted from a customer placing an order to purchase a product from the company. The various attributes necessary to process that sales order transaction would include such data as the customer (which allows detailed customer data to be drawn from the customer master record), the item or items being sold (which would draw data from the material master records for those items), the quantities being sold, the desired delivery date, the customer PO number, etc. While the customer master data for this transaction would be the same for various sales orders to that customer, the other data such as items wanted, quantities, delivery dates, etc. would most likely vary from order to order In general, an AIS is comprised of the following basic interrelated components People who design, implement, manage, operate and maintain the AIS Data that is collected and processed (see discussion of types of SAP data in the previous section) Information that has been generated from data collection and processing Formal and documented procedures to be performed for collecting and processing data into information (the exercises in the cases can be thought of as formal procedures, for example) Software (such as SAP) IT infrastructure (such as the computer on which you complete these exercises and the server on which SAP resides) Internal control over data collection and processing, generating information, and safeguarding assets and data In general, there are three basic objectives of an AIS Collect and process data from economic and financial events Generate information for decision-makers Provide internal control over data collection and processing, generating information, and safeguarding assets and data The COSO Framework describes internal control as a process implemented by an organization's management that provides reasonable assurance that certain objectives will be met: Reliable financial reporting Efficient and effective operations Compliance with laws and regulations The objective of reliable financial reporting can be broken down further into common transaction-related control objectives for greater appreciation of just what is meant by "reliable financial reporting" A particular transaction is properly authorized (i.e., should have occurred). A particular transaction is valid (i.e., did occur). A particular transaction is recorded (i.e., the transaction has been posted in the records). A particular transaction is recorded accurately (such as correct account; amounts, including any necessary reevaluations; dates; etc. being updated in records). These transaction-related internal control objectives not only seek to ensure reliable financial reporting, but also seek to safeguard assets and data from loss or theft, as well as make business operations more efficient and effective through the information generated for making decisions. Just as both the components of an AIS and internal control objectives are interrelated, respectively, so are these objectives. Failing to record transactions accurately will likely result in lost or stolen assets, thereby making operations less efficient and effective. While these control objectives help enhance the processing of transaction data, please recognize that these control objectives are also applicable to master data, which is used for processing transactions. Just as transactions should be properly authorized, valid, recorded, and accurate, so should master data. Further, meeting these control objectives over master data will also enhance the safeguarding of assets and data from loss or theft, as well as make business operations more efficient and effective through the information generated for making decisions. This is because the master data are being used to properly process transactions. COSO identifies five interrelated components of internal control for helping meet internal control objectives: Control environment - The tone at the top of an organization; management's philosophy and operating style; the board of directors; management's commitment to integrity and ethics; management process and human resource standards Risk assessment - Proper identification, response and management of risks that can impede or prevent operational objectives from being met Control activities - Policies and procedures that help address risks and meet objectives Monitoring - Review and response to how internal control is meeting risks and meeting objectives; includes internal audit activities Information and communication - Gathering information about internal control and communicating it to management and employees provides feedback on what is being done successfully and what is not, so that improvements can be made for managing risks and meeting objectives The most important component or foundation of internal control is the control environment. This is because it is management driven, and management is responsible for an organization's internal control. In other words, internal control begins with management and its attitude and objectives. With respect to internal control activities, there are two basic categories: Audit trail of activities Proper separation of duties For a particular type of transaction and related assets and records, four types of duties should be separated so that errors and fraud are minimized: Authorization Custody Recordkeeping Reconciliation Preventive vs. Detective Controls Preventive controls deter errors or fraud from occurring/updating to records. Detective controls identify errors or fraud that has occurred/updated records. For example, proper separation of duties is a preventive control, while reconciliation of a bank account to the general ledger is a detective control. While Benjamin Franklin's adage that "an ounce of prevention is worth a pound of cure" indicates that preventive controls are preferable, an organization should have a combination of both. Referring back to the two examples provided above, the bank reconciliation is one of the most crucial and basic controls in any organization, but if given to an individual with an incompatible duty, the control procedure is weakened. a third category of controls, corrective controls. Corrective controls are procedures performed after discovery of an error or fraud. For example, a disaster recovery plan (such as data back-up) is described by some textbooks as a corrective control. However, it can also be described as a preventive control because it seeks to prevent loss of data and interruption of operations. This case focuses solely on the dichotomy of preventive vs. detective controls. .... General vs. Application Controls General controls are broader and extend over the organization and its AIS, such as disaster recovery procedures. Application controls are more specific to particular transactions and focus on proper data entry, processing, and output. Application controls Completeness check Field check Limit check Range check Reasonableness test Sign check Size check Validity check Closed-loop verification Zero-balance test Completeness check Seeks to ensure that all required data has been entered before a transaction is recorded or record updated. For example, some may have encountered when processing a purchase online at a website that a message prompted the person that he/she has not entered all required data, such as an address or phone number. Reflecting back on the common transaction-related control objectives, depending on the attribute a completeness check can help enhance that a particular transaction or record is recorded, or a transaction or record is recorded accurately. When controlling a primary key attribute, such a check is helping make sure a transaction is recorded because the primary key is the attribute upon which the record is based for recording. When controlling a non-key or secondary attribute of a transaction, such a check is helping make sure it is recorded more accurately. Field check Determines if the characters in a field are the proper type, such as numeric, alpha/numeric, zip code, etc. before a transaction is recorded or record updated. A field check typically helps enhance that data is recorded accurately because it seeks to make sure the value entered is of the correct character type. Limit check Tests a numerical amount in a field against an upper or lower predetermined value before a transaction is recorded or record updated. For example, a customer should have a credit limit entered in their master record, and the combination of the customer's outstanding accounts receivable balance and sales orders should not exceed the pre-established credit limit. As another example, if employees can only work 40 regular hours a week and are paid bi-weekly, a limit check would prevent an input of more than 80 regular hours for payroll. Assuming all data had been input properly in the first example, the limit check is helping enhance that a particular transaction is properly authorized. Assuming that an error had been made in the second example, the limit check is helping enhance that a particular transaction is recorded accurately. Range check Like a limit check but includes both an upper and lower limit on a field. For example, an organization may require a certain minimum value of items to be ordered, but a certain maximum value before a special authorization is required. A range check would make sure the minimum was met and whether special authorization is required. Assuming all data had been input properly in this situation, the range check is helping enhance that a particular transaction is properly authorized because it is making sure that it should occur. Reasonableness test Determines the correctness or logic of a relationship between two or more data items before a transaction is recorded or record updated. For example, it could be considered unreasonable for a particular category of employee to be paid a certain salary. For example, it is unreasonable for an administrative assistant to have a salary of $25,000 per month, while it is more reasonable for someone in executive management to have such a salary. The relationship between employee category and salary is considered illogical. Assuming an error had been made in entering an administrative assistant's salary in the master records in this situation, the reasonableness test is helping enhance that the master record is recorded accurately, and therefore related transactions. Sign check Determines if the data entered has the appropriate sign before a transaction is recorded or record updated. F or example, an individual may be entering a transaction in the general ledger. If the transaction requires the reduction of an asset account, the individual may try entering a negative value in the field. However, if the screen is designed with a field for debits and a field for credits, no negative value is necessary, with the value entered in the credit field. In this situation, the sign check is helping enhance that a particular transaction is recorded accurately. Size check Determines that the data being input will fit into the assigned field before a transaction is recorded or record updated. For example, a standard zip code field should only allow five digits to be input. As a real-life example of where a size check (or a limit check) would have been highly appropriate, an individual purchased a pack of cigarettes with his debit card and was charged a "17-digit number - a stunning $23,148,855,308,184,500 (that is twenty-three quadrillion, one hundred forty-eight trillion, eight hundred fifty-five billion, three hundred eight million, one hundred eighty- four thousand, five hundred dollars)." (http://www.huffingtonpost.com/2009/07/15/man- charged-23-quadrillio_n_233286.html). The individual spent two hours on the phone trying to correct it, as well as having the $15 overdraft charge reversed. In these examples, the size check is helping enhance that a particular transaction is recorded accurately. Validity check Compares the data entered into a field for either a transaction or master record to that in a field of another master record to verify the data entered exists. Common examples of this would be primary keys such as customer number, vendor number, employee number, inventory item number, store number, plant number, etc. Other examples would be predetermined values such as state and currency abbreviations. The validity check is helping enhance that a particular transaction is recorded accurately by seeking to ensure the value entered does exist. Closed-loop verification Similar to a validity check except it retrieves and displays other data related to the data that has been entered before a transaction is recorded or record is updated. For example, upon entering a customer number on an input screen, SAP may show the customer name of the customer number entered. This application control not only helps ensure that a valid data item has been entered, but the desired data item has been entered. Closed-loop verification is helping enhance that a particular transaction is recorded or record updated accurately by seeking to ensure that correct and valid data has been entered. Zero-balance test Compares numerical data entered to a pre-determined number for ensuring accuracy. For example, when entering a transaction in the general ledger, debits should equal credits. If not equal, SAP will not allow posting. The zero-balance test is helping enhance that a particular transaction is recorded accurately. Internal control helps: Improve data collection and processing Enhance the reliability of information generated for decision-makers Safeguards assets and data from loss or theft Operations be more efficient and effective Comply with laws and regulations MM Procurement logistics, defined as Materials Management (MM) in R/3, involves purchasing, inventory management, and warehouse operations. Materials must be ordered from vendors, received into the warehouse, issued from the warehouse for sale or for use in manufacturing, and the vendor must be paid. In all of these processes the quantities ordered and on hand, the prices to be paid, and the costs to be charged to sales or manufacturing must be tracked. Vendor Data: Vendors are business partners that are suppliers of materials or services to the firm. While vendors can be internal (components of the same company), the vendors in this case are external When a vendor master record is created in SAP, the choice can be made to let the system assign a vendor number or the user can assign the vendor number. It is generally better to allow the system to assign the vendor number thereby letting the system track numbers and thus prevent duplications. Once the vendor number is assigned that is, the primary key value), that becomes the key value used to track business activities with the vendor. The vendor number not only tracks the purchasing transactions with the vendor, it also serves as that vendor's account number in the accounts payable subsidiary ledger in the Financial Accounting (FI) module of SAP. If the company wishes to purchase something from a given vendor, inputting that vendor's number in the purchase order will automatically reference and access all vendor master data necessary to carry out that transaction and also facilitate the entry required in the payables ledger for the amount owed when the materials are received. This is because the vendor number is a foreign key in both the purchase order table and payables table (vendor subsidiary records). ... Procurement logistics transaction process flows: From an overall perspective, the logistics value chain processes involve obtaining purchased materials from suppliers, monitoring the status of those purchases, and receiving the items into inventory. The process involves the creation of a purchase requisition followed by the creation of a purchase order, the receipt of goods into inventory, the receipt of an invoice for the acquisition, and the payment of that invoice. In step #16, you are instructed to check the box for "Chk double inv." Below is a screenshot showing an explanation for "Chk. double inv." The explanation is obtained by clicking on the description and then either right clicking on "Help" or selecting F1. Which of the four common transaction-related internal control objectives is least enhanced by this control feature in this situation? Explain. Of the four common transaction-related internal control objectives the least enhanced by this control feature is a particular transaction is recorded because the system has no way of knowing if something is recorded in the system. For example, you may have a stack of papers, but the system won't know if it's inputted because it's only checking things that are in the system. 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Which of the following determines what a user is allowed to do within the SAP system? User Role The SAP Module that is used for the functions of co... [Show More] st accounting and internal reporting is the CO Which of the following is an inherent weakness of internal control? -Management override of controls; -Collusion amongst people with incompatible duties -Human error The organizational unit that represents the independent legal accounting entity in SAP is the Company Code The Highest level in an SAP instance is the client The application control compares the data entered into a field for a transaction to that in a master record to verify the data entered exists? Validity Check In SAP the process through which the user sets values in tables to cause the system to function in a desired manner is known as? Configuration A field check typically helps enhance which of the following common transaction related objectives? A particular transaction is recorded accurately Application Controls are useful for enhancing the reliability of transaction data and master data true Which of the following are types of data within the SAP system? -Master Data -Transaction Data -configuration Data Master file (Standing Data) & Transaction processing experience within SAP for the following process MM (Procurement/ Purchasing) PP (Production) SD (Sales and Distribution) FI/CO (Financial & Cost Accounting) What is SAP? -SAP is an ERP (enterprise resource planning system) which is highly integrated system that provides: 1)Seamless flow of information across organizational bound 2)Standardized environment that keeps data separate from applications Material Management (MM) (Purchasing) Master Data used (standing data): -Vendors -Materials (Inventories) 1)Raw Materials 2)Trading Goods 3)Finished Goods Material Management (MM) Documents: Bill of Materials ("recipe" Purchase Order Goods Receipt Invoice Other: Reconciliation Accts (ex:Sub Ledgers) SAP updates the G/L in "Real Time" -There is no intermediate recording in journals, Each transaction posted right to ledger. Processing speed of computers allows for this. Material Management(MM01-MM08) -Create Reconciliation Accounts -Create Vendor Master Data -Create Raw Material Master Data -Create Trading Good Master Data -Create Finished Products Master Data link Vendor to Material Material Management(MM09-MM12) -Purchase Requisition -Purchase Order -Goods Receipt -Invoice Receipt Material Management (MM- Procurement Logistic) -Purchasing -Invoice Verification -Inventory -Management -Warehouse Management Client The highest level in a SAP instance. A client is a self-contained unit with a separate set of master records and its own set of configuration tables. An instance (installation) can have more than one client (e.g., a training client, a testing client, and a production client). In using SAP the user logs on to a particular client that usually has a three digit numeric identifier. Company Code Represents an independent legal accounting entity that contains a balanced set of books as required by law or regulation. A client may have more than one company code (e.g. a company code for the US, one for Germany, one for Canada, etc.) Chart of Accounts A list of all accounts in the General Ledger for a company code. Each company code must be assigned one, and only one chart of accounts. However, more than one company code can use the same (i.e., identical) chart of accounts. SAP comes preconfigured with a large number of charts of account. For example, the delivered US chart of accounts is CAUS. Accounts can be added to, deleted from, or modified in the delivered chart of accounts as desired by the user. Passwords: Each user has a unique password. On the initial log in to the system, the user must change a generic delivered password to one chosen by the user. The password must be at least three characters long, cannot begin with a "!" or "?", and the first three characters unique and not contained in the user name. Roles and Profiles: Roles specify the sets of tasks or activities that can be performed by a particular user within the system. A role is assigned to each user. When the user logs on, the system automatically presents a specific menu for that user's assigned role. For example, a receiving clerk should perform only certain tasks within the SAP system. When a receiving clerk logs on, that user's role will define what the user will be allowed to view, create, change, delete, etc. Profiles work in the same manner as do roles to restrict authorization for access to the system. User profiles and roles are entered by system administrators into user master records thus enabling users to access and use specific functions within the system. SAP also produces a separate application enhancement called Governance Risk and Controls, which can identify compatible and incompatible duties with a color coding. This application is not part of the software you are using, but know that organizations use it to properly define roles. Session: Each instance in which a user is connected to the SAP system is known as a session. A user can have up to nine sessions open at any given time (but each session is logged into the same client and company code). Configuration: Configuration is table-driven customization of the SAP system to meet specific customer requirements. In configuration the user sets values in tables to cause the system to function in a desired manner. Configuration is somewhat like setting the defaults in a word process or spreadsheet application. It does not change the underlying source code in the system. In the Classic Rockers case there are no configuration exercises. The case system has been preconfigured. Business Processes A business process can be described as a set of linked activities that transform an input into a more valuable output thus creating value. Types of Data There are three differing types of data within the SAP system: control or configuration data, master data, and transaction data. Control or configuration data include system and technical functions of the SAP system itself. These data drive the logic of the applications within the system and is primarily used for defining the details of business processes Master data represent the various business entities present in the system, both internal and external. For example, master data include internal entities such as the company, a plant, a sales area, a cost center, an account, a material, a routing, a bill of material, or a personnel file. In addition there are external entities that are a part of the system's master data such as vendors, customers, employees, and even competitors. Transaction data describe a business event or may be the result of a business process. For example, a sales order would contain transaction data that have resulted from a customer placing an order to purchase a product from the company. The various attributes necessary to process that sales order transaction would include such data as the customer (which allows detailed customer data to be drawn from the customer master record), the item or items being sold (which would draw data from the material master records for those items), the quantities being sold, the desired delivery date, the customer PO number, etc. While the customer master data for this transaction would be the same for various sales orders to that customer, the other data such as items wanted, quantities, delivery dates, etc. would most likely vary from order to order In general, an AIS is comprised of the following basic interrelated components People who design, implement, manage, operate and maintain the AIS Data that is collected and processed (see discussion of types of SAP data in the previous section) Information that has been generated from data collection and processing Formal and documented procedures to be performed for collecting and processing data into information (the exercises in the cases can be thought of as formal procedures, for example) Software (such as SAP) IT infrastructure (such as the computer on which you complete these exercises and the server on which SAP resides) Internal control over data collection and processing, generating information, and safeguarding assets and data In general, there are three basic objectives of an AIS Collect and process data from economic and financial events Generate information for decision-makers Provide internal control over data collection and processing, generating information, and safeguarding assets and data The COSO Framework describes internal control as a process implemented by an organization's management that provides reasonable assurance that certain objectives will be met: Reliable financial reporting Efficient and effective operations Compliance with laws and regulations The objective of reliable financial reporting can be broken down further into common transaction-related control objectives for greater appreciation of just what is meant by "reliable financial reporting" A particular transaction is properly authorized (i.e., should have occurred). A particular transaction is valid (i.e., did occur). A particular transaction is recorded (i.e., the transaction has been posted in the records). A particular transaction is recorded accurately (such as correct account; amounts, including any necessary reevaluations; dates; etc. being updated in records). These transaction-related internal control objectives not only seek to ensure reliable financial reporting, but also seek to safeguard assets and data from loss or theft, as well as make business operations more efficient and effective through the information generated for making decisions. Just as both the components of an AIS and internal control objectives are interrelated, respectively, so are these objectives. Failing to record transactions accurately will likely result in lost or stolen assets, thereby making operations less efficient and effective. While these control objectives help enhance the processing of transaction data, please recognize that these control objectives are also applicable to master data, which is used for processing transactions. Just as transactions should be properly authorized, valid, recorded, and accurate, so should master data. Further, meeting these control objectives over master data will also enhance the safeguarding of assets and data from loss or theft, as well as make business operations more efficient and effective through the information generated for making decisions. This is because the master data are being used to properly process transactions. COSO identifies five interrelated components of internal control for helping meet internal control objectives: Control environment - The tone at the top of an organization; management's philosophy and operating style; the board of directors; management's commitment to integrity and ethics; management process and human resource standards Risk assessment - Proper identification, response and management of risks that can impede or prevent operational objectives from being met Control activities - Policies and procedures that help address risks and meet objectives Monitoring - Review and response to how internal control is meeting risks and meeting objectives; includes internal audit activities Information and communication - Gathering information about internal control and communicating it to management and employees provides feedback on what is being done successfully and what is not, so that improvements can be made for managing risks and meeting objectives The most important component or foundation of internal control is the control environment. This is because it is management driven, and management is responsible for an organization's internal control. In other words, internal control begins with management and its attitude and objectives. With respect to internal control activities, there are two basic categories: Audit trail of activities Proper separation of duties For a particular type of transaction and related assets and records, four types of duties should be separated so that errors and fraud are minimized: Authorization Custody Recordkeeping Reconciliation Preventive vs. Detective Controls Preventive controls deter errors or fraud from occurring/updating to records. Detective controls identify errors or fraud that has occurred/updated records. For example, proper separation of duties is a preventive control, while reconciliation of a bank account to the general ledger is a detective control. While Benjamin Franklin's adage that "an ounce of prevention is worth a pound of cure" indicates that preventive controls are preferable, an organization should have a combination of both. Referring back to the two examples provided above, the bank reconciliation is one of the most crucial and basic controls in any organization, but if given to an individual with an incompatible duty, the control procedure is weakened. a third category of controls, corrective controls. Corrective controls are procedures performed after discovery of an error or fraud. For example, a disaster recovery plan (such as data back-up) is described by some textbooks as a corrective control. However, it can also be described as a preventive control because it seeks to prevent loss of data and interruption of operations. This case focuses solely on the dichotomy of preventive vs. detective controls. .... General vs. Application Controls General controls are broader and extend over the organization and its AIS, such as disaster recovery procedures. Application controls are more specific to particular transactions and focus on proper data entry, processing, and output. Application controls Completeness check Field check Limit check Range check Reasonableness test Sign check Size check Validity check Closed-loop verification Zero-balance test Completeness check Seeks to ensure that all required data has been entered before a transaction is recorded or record updated. For example, some may have encountered when processing a purchase online at a website that a message prompted the person that he/she has not entered all required data, such as an address or phone number. Reflecting back on the common transaction-related control objectives, depending on the attribute a completeness check can help enhance that a particular transaction or record is recorded, or a transaction or record is recorded accurately. When controlling a primary key attribute, such a check is helping make sure a transaction is recorded because the primary key is the attribute upon which the record is based for recording. When controlling a non-key or secondary attribute of a transaction, such a check is helping make sure it is recorded more accurately. Field check Determines if the characters in a field are the proper type, such as numeric, alpha/numeric, zip code, etc. before a transaction is recorded or record updated. A field check typically helps enhance that data is recorded accurately because it seeks to make sure the value entered is of the correct character type. Limit check Tests a numerical amount in a field against an upper or lower predetermined value before a transaction is recorded or record updated. For example, a customer should have a credit limit entered in their master record, and the combination of the customer's outstanding accounts receivable balance and sales orders should not exceed the pre-established credit limit. As another example, if employees can only work 40 regular hours a week and are paid bi-weekly, a limit check would prevent an input of more than 80 regular hours for payroll. Assuming all data had been input properly in the first example, the limit check is helping enhance that a particular transaction is properly authorized. Assuming that an error had been made in the second example, the limit check is helping enhance that a particular transaction is recorded accurately. Range check Like a limit check but includes both an upper and lower limit on a field. For example, an organization may require a certain minimum value of items to be ordered, but a certain maximum value before a special authorization is required. A range check would make sure the minimum was met and whether special authorization is required. Assuming all data had been input properly in this situation, the range check is helping enhance that a particular transaction is properly authorized because it is making sure that it should occur. Reasonableness test Determines the correctness or logic of a relationship between two or more data items before a transaction is recorded or record updated. For example, it could be considered unreasonable for a particular category of employee to be paid a certain salary. For example, it is unreasonable for an administrative assistant to have a salary of $25,000 per month, while it is more reasonable for someone in executive management to have such a salary. The relationship between employee category and salary is considered illogical. Assuming an error had been made in entering an administrative assistant's salary in the master records in this situation, the reasonableness test is helping enhance that the master record is recorded accurately, and therefore related transactions. Sign check Determines if the data entered has the appropriate sign before a transaction is recorded or record updated. F or example, an individual may be entering a transaction in the general ledger. If the transaction requires the reduction of an asset account, the individual may try entering a negative value in the field. However, if the screen is designed with a field for debits and a field for credits, no negative value is necessary, with the value entered in the credit field. In this situation, the sign check is helping enhance that a particular transaction is recorded accurately. Size check Determines that the data being input will fit into the assigned field before a transaction is recorded or record updated. For example, a standard zip code field should only allow five digits to be input. As a real-life example of where a size check (or a limit check) would have been highly appropriate, an individual purchased a pack of cigarettes with his debit card and was charged a "17-digit number - a stunning $23,148,855,308,184,500 (that is twenty-three quadrillion, one hundred forty-eight trillion, eight hundred fifty-five billion, three hundred eight million, one hundred eighty- four thousand, five hundred dollars)." (http://www.huffingtonpost.com/2009/07/15/man- charged-23-quadrillio_n_233286.html). The individual spent two hours on the phone trying to correct it, as well as having the $15 overdraft charge reversed. In these examples, the size check is helping enhance that a particular transaction is recorded accurately. Validity check Compares the data entered into a field for either a transaction or master record to that in a field of another master record to verify the data entered exists. Common examples of this would be primary keys such as customer number, vendor number, employee number, inventory item number, store number, plant number, etc. Other examples would be predetermined values such as state and currency abbreviations. The validity check is helping enhance that a particular transaction is recorded accurately by seeking to ensure the value entered does exist. [Show Less]
What does transactional data typically record for a business using SAP? action Which client is an example of a nonproduction client? Training ... [Show More] Imagine a user assigned to a "Manufacturing Manager North America" role. Which action would this user typically NOT have access to? creating a purchase order for a plant Melbourne Australia What is NOT a benefit of implementing SAP ERP? low total cost of ownership Which task in the realization step can be costly and lengthy to implement? customization Which of these is NOT a logistics module in SAP ERP? SAP Human Capital Management What is NOT a component of the Materials Management module in SAP? Sales Contracts When making a product, the _____ acts like the ingredients list of a recipe, and _____ act as the step-by-step instructions of the same recipe. bill of materials; routings Preventive, monitoring, and corrective actions are part of which Quality Management area? Quality control Which is NOT a major area of SAP Plant Maintenance? Inventory management What is NOT included in the Work Breakdown Structure? ROI Analysis Which Human Capital Management area records employee attendance and leave accruals? Time management Which SAP FI submodule handles invoice payments to suppliers? Accounts Payable Which SAP CO submodule deals only with expenses for a company's internal departments? Cost center accounting Which is NOT part of the distribution phase of the SAP Sales and Distribution process? creating invoices Creating favorites is useful for what types of transactions? frequently used transactions What does a red asterisk indicate when it shows next to an entry field? Entry in this field is required. When you're already in a transaction and you need to navigate to a different transaction in the same session what must you type before the transaction code in the command bar? /n You need to find all items with "laptop" appearing inside their names. Which search description should you use? laptop On which screen and tab can you set your default printer in SAP? Maintain User Profile - Defaults Tab Which item has to be specified before getting to the actual screen to sign in? connection In the SAP Menu screen how are the folders and their associated transactions organized? by business area In general, T codes ending with _____ are used to create a record. 01 Once you change your theme, what action do you need to perform for the change to take effect? Log off SAP, close the system and log back on. If you wanted to exclude two weeks from your report results which multiple selection screen tab would be most efficient? Exclude Ranges What is a scenario where you would want to create a search variant? You run a report with the same selection criteria every day. You want to save a certain layout as a global layout others can use. Is there anything special you need to specify in its saved name? Yes, prefix it with a slash. To see the oldest order at the top in our List of Sales Orders report results, what should you do? Click in the Doc. Date column and click Sort Ascending. In your List of Sales Orders report results, if you decided you want to see all sales orders for only one customer which column would you filter by? Sold-To Party Which function allows you to see our data output before it is printed? Print preview When is exporting reports from SAP to Excel is useful? when you need advanced data manipulation of your report results In your List of Sales Orders report, if you wanted to see all sales orders for only one customer which field would you populate? Sold-To Party [Show Less]
ERP stands for Enterprise Resource planning A type of system that supports all eternal business processes within an organization is ERP All... [Show More] of the different functional areas within an organization can use ____system to support its daily business process ERP ERP integrates internal and external management of information across an entire organization such as o Finance accounting o Manufacturing o Sales & service o Customer relationship management o Supply chain What facilitates information sharing among the different functional areas ERP What manages connections with outside partners ERP What Supports information sharing ERP What are ERP distinctive characters Modular Central Data-Base Role Based IS Controls Modular The way that the system is developed is based on which modules the company wants, there are over 2000 modules Central Database • One central database to store information • Allows data sharing • One version of the truth • Consistent • Can be shared IS Controls Restrictions or controls to make sure information is valid, authorized & consistent IS controls: Cross Validation o Validate, checks and balances o End result is consistent with the beginning order IS controls: Segregation of duties People will not be assigned conflicting task so no fraud can happen IS controls: Tolerance limits Cant exceed a certain limit IS controls: Hierarchy of approvals Several roles have to approve functions How does SAP increase profit • Cut time • Cut cost • Less resources SAP stands for System Applications and Products SAP - System Applications and Products • Global concern with many companies • Several other vendors SAP Portfolio Strength • World Wide Usage • Designed to satisfy the into needs for all business sizes • Designed to satisfy the information needs for all industries • Helps the organization run smoothly • Real time environment • Scalable and flexible How is SAP designed to satisfy the into needs for all business sizes o Multi lingual o Multi currency SAP is designed to satisfy the information needs for all industries such as o Automotive o Retail o Public sector o Banking o Higher education & research SAP ERP • Enables a company to support and optimize its business process • Ties together disparate business functions such as (integrated business solution) • Helps the organization run smoothly • Real time environment • Scalable and flexible Ties together disparate business functions such as o Finance o Logistic o Human resources SAP Architecture • Client/Server Environment • Three-Tier Structure • Graphical User Interface or Web Interference • One or more, help distribute work load • One single data repository Client hardware/software environment that can make a request for services for a central repository of resources Server hardware/software combination that can provide services to a group of clients in a controlled environment GUI • Graphical User Interface or Web Interference Application Server • One or more, help distribute work load Database Server • One single data repository Business Modules • MM Material Management - Buy • PP Production Planning - Make • SD Sales & Distribution - Sale • FI & CO Financials and Control - Track • HCM Human Capital Management - People • WM Warehouse Management - Store • EAM - Maintain • CS - Service SAP ERP Advancements • Cloud • In Memory Database • Big Data • Mobile Sales Process 1. Create a customer 2. Create inquiry 3. Create the quotation a. Add what date its valued to b. Add any discounts 4. Create sales order a. Wait for them to send po number 5. check availability (ATP not in stock) 6. Create delivery note 7. Pick release (prepare to ship) 8. Post goods issue 9. Create invoice or run auto invoice 10. Entering incoming payment How come the system did not create a po? We don't know the system the other company is using When is the invoice created? When you have shipped What is the objective of the purchasing cycle? Streamline the purchasing cycle Streamline the purchasing cycle does what? o Shorten the cycle o Monitor the suppliers o Document all phases o Prevent fraud What pre-purchasing document do you create? Requisition RQF Requisition get approval for the purchase/ may require multiple RQF Request for quotation sent to 3 or more vendors, prevent fraud Quotations are evaluated based on o Price o Delivery o Quality What are the controls set up in purchasing that prevents fraud? • Requisition must be approved • Must have several quotations • PO must match the requisition & quotation • Goods receipt must match the PO • Quality assurance • Payment cannot be made except with a GR\IR When is a PO created? After a requisition is approved and quotation is accepted What documents can be copied into a PO? A requisition or a quotation can be copied into a PO A PO can refer to a sales agreement or contract directly How are quotations evaluated? • Price • Quality • Delivery time • Just in time delivery What effects does the creation of goods receipt have on the system? Invoice • Inventory • Cost of Inventory Invoice Receipt • Accounts payable ---General ledger • Vendor account ---Sub ledger Invoice Receipt • Accounts payable ---General ledger • Vendor account ---Sub ledger What are the documents created in the purchasing cycle? • Requisition • RFQ/Quotations • PO • Goods/Receipt/Invoice Report • Payment What are the different steps that SAP perform within the purchasing cycle? • Create a requisition and send alerts to those who need to approve • Once approve, the purchasing departed is alerted to enter the RFQ • When the quotations are received, the quotations are manufactured • System evaluates the quotation • Manager approves one quotation which is copied into a PO • PO is sent to vendor • When the vendor ships the goods, we enter a GR that must refer to a PO • Must follow the GR with a IR [Show Less]
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