Creating Vendor Master - Assignment Example

Exercise 1: Logon to the SAP System Stop & Think TABLE Exercise # Description Document # and/or system messages Exercise 2 Create Vendor Master Vendor 0000100394 has been created for company code C999 purchasing organization P999 Exercise 3 Create Material Material SPEN1350 created Exercise 4 Create Customer Master Customer 0000000316 has been created for company code C999 sales area S999 RE 01 Exercise 5 Create Quotation Quotation 20000293 has been saved Exercise 6 Create Sales Order with Reference to a Quotation Standard Order 222 has been saved Exercise 8 Run Material Requirements Planning – Single Item, Single Level MRP carried out for SPEN1350 P999 Exercise 9 Convert Purchase Requisition to Purchase Order Standard PO created under the number 4500000182 Exercise 10 Create Goods Receipt Material document 5000000175 posted Exercise 11 Create Invoice Receipt Document no. 5105600926 created Exercise 12 Post Payment to Vendor Document 1500000161 was posted in company code C999 Exercise 13 Create Delivery Note Outbound Delivery 80000159 has been saved Exercise 15 Picking Material on Delivery Note Outbound Delivery 80000159 has been saved Exercise 16 Post Goods Issues Outbound Delivery 800000159 has been saved Exercise 18 Bill Customer Document 90000156 has been saved Exercise 19 Process Customer (Incoming) Payment Document 1400000144 was posted in company code C999 Exercise 2: Create Vendor Master Stop & Think What do all these data (“Company Code”, “PurchasingOrganization”, and “Account Group”) mean? - Company Code- this shows the code of the company that is making purchases - PurchasingOrganization- the organization that is purchasing the goods. - Account Group- the category to which the company falls into Use the help function to find out the meaning of the following four fields: Customer, Trading Partner, Authorization, and Corporate Group. - Customer- - Trading Partner- the partner in business with company in question - Authorization- giving an OK to perform some function - Corporate Group- the company that is in business What is “IBAN”? - IBAN- bank account number to transfer funds to when doing wire transfer. What is a “SWIFT code”? - SWIFT code- the code for the bank when considering wire transfer for example swift code for Citi bank is CITIUS33 What is a “Recon. Account”? Explain the purpose of this account. - Recon. Account- helps in discovering errors or differences between records in G/L accounting is the and other postings . What is the purpose of the Interest Calculation Section? Give an example where you would use this setting. - Interest Calculation section (ex.) – it show interest to charged customer by account balance interest calculation and Calculation of interest on arrears. It shows what will be charged and amount to charged. What does “Chk double inv.” Mean? - Chk double inv. Shows the incoming invoices and credit memos are checked for double entries at the time of entry. What is “Dunn. Procedure”? What is “dunning”? - Dunn. Procedure Number of dunning levels Dunning frequency Amount limits Texts for the dunning notices - Dunning shows arrears of customers by tracing liable customers who have not paid their open invoices within a given time span. What is the purpose of the “ABC indicator” setting? What is “ABC analysis”? - ABC indicator setting- stock method that is applied in the company - ABC analysis This is a method that utilizes the assertion that the inventory value of any food and service operations are just around 15% - 20% of the total items. Consequently, the management tend to focus on only the A-values that are making up the inventory value (Puckett, 2004). In other words, what is considered to account for the most part of the inventory; 80%, is actually 20% of the total inventory items within a given stock. The second inventory value often around 20% to 25%, are actually 10% to 20% of the total inventory items and is represented by “B” (Dopson, 2011). The last component of ABC method is “C” which is generally items with the least value despite the fact that they are the largest component of the items contained in any given inventory stock. Based on the ABC method categorization of items into values, food service operations mostly divide their food items as per the table below. What else do you need to know about the vendor? (from the accounting perspective)? - Vendor? The vendor information required is address, credit worthiness, location, company Exercise 3: Create Material Stop & Think Some data have already been entered. How did this happen? - the other dat is reflected from other entries. Having done this exercise before resulted in data already having been entered Are there any data items that are relevant to accounting? -the data relates to accounting. What is EAN/UPC? - International Article Number identifies the manufacturer uniquely; it is assign EANs using "in-store" numbering techniques known only to the company What is the difference between “base unit of measure” and “sales unit”? - The equivalent of the EAN in America is the Universal Product Code What does the “cash discount” setting mean? Discount offered to cash customer What else do you need to know about the material (from the accounting perspective)? - All businesses use materials and supplies. The challenge from an accounting perspective is understanding when they can be currently deducted, when they must be capitalized, or when they are subject to some other tax treatment. Exercise 4: Create Customer Master Stop & Think What is the purpose of the “Reference” section? The SAP Reference Structure helps you identify your enterprise’s requirements and set your project scope. Who is Customer 1? This is first customer to be entered Exercise 4a: Review Customer Stop & Think Scan the data available on the three screens – General data, Company code data, and Sales area data. General data: Address, Control Data, Payment Transactions, Marketing and Export Data are available. (General data is the data related to customer’s name, search terms with specific signed number or text for customer, address and communication information. Basically it tells us little bit about our customer. Company code data: Account Management, Payment Transactions, Correspondence, and Insurance data are available. (This data is telling us our customer’s accounting information, interest calculation and reference data. Also, history of transactions and payment information available as well. Sales area data: Sales, Shipping, Billing Documents and Partner Functions are available. (The data includes customer’s sales area information) What does each of the three groups of data tell you in general? - provides data of the customer, the company code data information, and sales data which includes shipping and billing documents between you and the customer. What does “Tax Jur.” Mean? Why is it important? - The tax jurisdiction for the tax rates in the USA. It defines to which tax authorities you must pay your taxes. It is always the city to which the goods are supplied. What is a “tolerance group”? When would you use this setting? - Tolerance groups are unique within a company code. Each tolerance group contains settings that affect cash discount and payment difference processing. These settings become effective during payment entry. What payment methods are possible? - Check, bill of exchange, or bank transfer. What does “Cust.pric.proc.” mean? What are the options for this setting? - Shows the price to charge a customer. Customers are normally required to pay within one to three months, depending on the agreed credit terms. Often, however, customers are required to pay on receipt of invoice, though some firms issue statements each month showing the number of invoices sent to the customer during the month’s orders. The sales invoice is the source documents which provide the financial accounting data which will subsequently be recorded in the financial accounting system. Why are there different “partner functions”? When would you use this setting? - Exercise 5: Create Quotation Stop & Think From the business management perspective, why this step – create quotation – is necessary? To give a limit to which you can supply at. The process flow is described using an example scenario and is also valid for the other objects for which you can perform a quotation. How much is the total $ value? How is the net value calculated (recall that you didn’t enter any $ amounts here)? -$300, The net worth tax laws in many countries require a separate valuation of assets. The "net worth tax" component helps you to valuate assets for this purpose. You can use the values the system calculates in determining your net worth tax burden. Exercise 6: Create Sales Order with Reference to a Quotation - Record the Net Value of the Sales Order: $300.00 USD Stop & Think The sales order has a lot of information. What information is important for accounting? -sales order form stating the date of dispatch, a further copy of the sales order form stating the date of dispatch is sent to the invoice section of the Accounts Department, so that the sales invoice may be prepared. The sales state the nature, quantity and price of the goods ordered and the amount due to the firm from the customer. Customers are normally required to pay within one to three months, depending on the agreed credit terms. Often, however, customers are required to pay on receipt of invoice, though some firms issue statements each month showing the number of invoices sent to the customer during the month’s orders In a real business setting, who should have access to sales order information? - The sales people, store and other individual with responsibility of in charge of handling the information What does the document flow tell you? -it shows status of the order as well as Is the information useful for accounting? Why? - It is useful as it provides information about stock required so as to reconcile stock levels as well make purchases What is the “input” information of this sales order creation process? - What is the “Output” information? - Exercise 7: Check Stock Status Stop & Think Stock Type Stock Quantity Explanation Unrestricted use  0  Stock that be used to service orders. This figure shows that stock should be replenished Sales orders  150  Orders pending of Scheduled for delivery ("Schd. for delivery")  0  No amount to be delivered Exercise 8: Run Material Requirements Planning – Single Item, Single Level Stop & Think What is the “Input” information of this MRP process? - The information for this process is obtained from a master schedule, a bill of materials, and an inventory database. The bill of materials is a listing of all the raw materials, component parts, subassemblies, and assemblies required to produce one unit of a specific finished product. What is the “Output” Output information? - The output is budgeted orders, showing what is required when and amount. It also shows all schedules, of orders, order releases, authorize orders to be made; and changes to planned orders, which might include cancellations or revisions of the quantity or time frame. It has performance control reports, such as stock out off store and overstocking. The amount of goods to purchase, and those stocks that need to be maintained at a particular level. The inventory management techniques used for food services operations are unique. This is because food service operations are in most cases situated all over, even in places that other businesses would not thrive at. Exercise 9: Convert Purchase Requisition to Purchase Order - Record the amount of the purchase order $ $1,250.00 Stop & Think Screenshot of the Stock/Requirement List What is the “input” information of this PO process? - Requisition notes, and funds allocation will for basis of this from departments will provide information to be input in process. The purchasing section is concerned with procuring the raw materials, equipment and supplies needed by the firm. Each request must be made by means of a requisition form stating the nature and quantity required and bearing the signature of the manager having authority to requisition purchases. The purchasing section selects a suitable supplier and sends him a purchase order setting out the description, quantity and required delivery date of the goods, together with instructions as regards dispatch and invoicing. The Purchase order Form will refer to the Quoted price of the goods according to the suppliers, catalogue or other statements of the supply price, although quoted prices contained in advertisements for sale are not binding in law on suppliers. In effect, the purchase Order Form is an Offer to Purchase and once accepted by the supplier constitutes a legal contract between buyer and seller. Copies of the purchase Order are distributed to the several departments which will be concerned with it, that is, the receiving departments which will need to know the details and the date of receipt of the order, the inventory control department to advise of the pending arrival of goods and to serve as a check on the receiving, the Accounts Department for checking that the price quoted compares with the price list, and the ordering department, to confirm that the order has been placed. What is the “output” information? - Materials to be purchased and quantity as well as supply details. The list of Stock/Requirement will be made Does this PO process have any “accounting impact”? (In order words, do you need to create a journal entry for this process?) Why? - The information will not require a journal entry. Exercise 10: Create Goods Receipt Stop & Think What is the “Input” information of this goods receipt process? - Upon delivery of goods, the receiving department verifies that the goods delivered compare in every detail will its copy of the Purchase order. Once the delivery Note is agreed, a Goods Received Note is prepared which details the description of the goods received, there quantity, quality and condition. A copy of the goods received note is sent to the department concerned with the audit of the receipt of goods, which is usually the purchasing Department. A copy of the Goods received note is also sent to the accounts Department and the department responsible for the order. The inventory control department keeps records of inventories, and ensures that adequate inventory levels are maintained. As we shall see in part 3, inventory management relies upon the determination of the recorder points in relation to inventory flows and economic order quantities. What is the “Output” information? - The output information will entail stocking store for use. It will lead to updating stock data base Does this goods receipt process have any “accounting impact”? (In order words, do you need to create a journal entry for this process?) Why? - Journal entries are necessary to record these transactions, thus it requires journal entry. The posting into the journal is affected by transferring to the account of each supplier the value of the goods supplied in a period, and transferring the total value of all purchases in the period to the purchases account. The details entered in the day books are obtained from the invoices. What does the material document look like? (You can use transaction MB03 to find out.) Take a screenshot of your material document and include it in your submission. Does accounting need the material document? Why? - Yes, because it gives Evidence of one or more material movements, providing information for downstream applications. Exercise 11: Create Invoice Receipt Stop & Think Before you proceed, notice that on the right top corner of the screen there is a “traffic light”. What does this mean? It I means you can proceed with entry of data Before you proceed, notice that on the right top corner of the screen the “traffic light” changed. What does this mean? -the system is ready for entry of data What is the “input” information of this invoice receipt process? -invoices What is the “output” information? Creditors list Does this invoice receipt process have any “accounting impact?” (In order words, do you need to create a journal entry for this process?) Why? - There is no creation of journal because the process Exercise 12: Post Payment to Vendor Stop & Think What is the “input” information of this payment process? - Upon delivery of goods, the receiving department verifies that the goods delivered compare in every detail will its copy of the Purchase order. Once the delivery Note is agreed, a Goods Received Note is prepared which details the description of the goods received, there quantity, quality and condition. A copy of the goods received note is sent to the department concerned with the audit of the receipt of goods, which is usually the purchasing Department. What is the “output” information? - Delivery note for delivering goods Does this payment process have any “accounting impact”? (In order words, do you need to create a journal entry for this process?) Why? - No journal entries for delivery notes Exercise 13: Create Delivery Note Stop & Think What is the “input” information of this process? - Inventory databases delivery notes, and requisitions What is the “output” information? - Stock in store Does this process have any “accounting impact”? (In order words, do you need to create a journal entry for this process?) Why? - No, since the record exists. The accounting record of the events described in the source documents which we have just examined begins with the issue or receipts of invoices. Although legal obligations are created with the acceptance of an order, either by the firm or its suppliers, for practical reasons, accountants do not record these obligations until they are formally stated. Should there be any dispute, however, about the existence of an order, the appropriate source document will provide legal evidence of that order. Exercise 14: Check Stock Status Stop & Think Verify and record the quantity of each stock type below: Stock Type Quantity Notes Unrestricted Use 1000  Stock that is store and can be sold. It is outcome goods status Sales Orders 0  No orders outstanding to be serviced from stock Scheduled for Delivery 150 This is the outcome of the delivery note you just created. Exercise 15: Picking Material on Delivery Note Stop & Think What is the “input” information of this process? - The input information purchase order and invoice. What is the “output” information? - Delivery note and advice note Does this process have any “accounting impact”? (In order words, do you need to create a journal entry for this process?) Why? - No, no recording is done in the journal entries. Exercise 16: Post Goods Issues Stop & Think What is the “input” information of this process? - Delivery notes and an Advice note is sent to the customer as soon as the goods are dispatched advising him of the date of dispatch and the mode of transport used. The goods themselves are normally accompanied by a delivery note stating the description of the goods and the quantity involved though not the price. The customer acknowledges receipt of the goods by signing the delivery note. What is the “output” information? - Records of deliveries and goods delivered and returns Does this process have any “accounting impact”? (In order words, do you need to create a journal entry for this process?) Why? - No, no records is done Exercise 17: Check Stock Status Stop & Think Verify and record the quantity of each stock type in the table below. You need to explain the differences. Stock Type (A)  Quantity (B) Quantity from Exercise 14 © Quantity from Exercise 7 Explain the Difference Unrestricted Use  850  1000  0   850 is quantity in stock after making sales of 150 Sales Orders  0  0  150  This are sales but no delivered to customer Scheduled for Delivery  0  150  0  The stock ordered by customer and needs to be delivered Exercise 18: Bill Customer Record the total amount (“Net Value”) billed to the customer $: $300.00 Stop & Think What is the “input” information of this process? - The information input into Bill Customer process comes from delivery note, customer order and stock database and payment receipts. The customer order or LPO has the listing of all the customer ordered. What is the “output” information? - An invoice is produced Does this process have any “accounting impact?” (In order words, do you need to create a journal entry for this process?) Why? - The Bill Customer process requires the journal entry as creates basis of customer records for goods or services supplied or receipt. Any payments will do using this information. Exercise 19: Process Customer (Incoming) Payment Stop & Think What is the “input” information of this process? - The information input into Process Customer (Incoming)Payment comes from delivery note, customer order and stock database and payment receipts. The customer order or LPO has the listing of all the customer ordered. What is the “output” information? - A receipt is produced Does this process have any “accounting impact”? (In order words, do you need to create a journal entry for this process?) Why? - The Process Customer Payment requires the journal entry as creates basis of customer records for goods or services supplied and payments will do using this information this clears an account Exercise 20: Document Flow Stop & Think How is this document flow useful for accounting? - This shows how work is processed in accounting environment. It shows users process of processing information within the system. It shows how data flows through system but does not really show the processing steps. However, it can show what a system does and how it does it Read More