ERP stands for
Enterprise Resource planning
A type of system that supports all eternal business processes within an organization
... [Show More] is
ERP
All 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]