Primary Learning Objectives
Use
the SAP system to experience the steps in a typical sales transaction
See
how a highly integrated ERP system (SAP) handles a typical sales
transaction
Work
through the procedures involved in a test of transactions
Look
at a special feature of the sales and distribution (SD) module of SAP
Accounting Information Systems
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Sales Cycle
Advertising
Product
Information to
Customers
Collections
Payment
Received
Marketing
Sales Department
Materials Mgmt
Accounting
Invoice
Generated
Customers PO
Sales Order
Goods Delivery
Accounting Information Systems
Idea for Chart taken from Univ. of Toronto
Professions, Sales, and SAP
Marketing
Sales
•Product Preferences
•Customer Demand Levels
•Product Info and Pricing to Customers
•Stock Availability
•Customer PO / Sales Order
IT-Database
with data integrity
Materials Mgmt
•Pick and pack the items
•Deliver the Goods
Accounting Information Systems
Professions, Sales, and SAP
Accounts Receivable
Accounting & Finance
•Budgeting and Cash Flow Projections
•General Ledger Account Review
•Invoice Generation
•Allow for Doubtful Acct Calculation
•Oversight of Accounts Receivable
•Credit Terms / Limits
•Payment Received
•Aging of Accounts
•Collections
IT-Database
with data integrity
Auditing
•Survey of Controls – including
•Tests of Controls
•Tests of Transactions
•Tests of Account Balances
Accounting Information Systems
IT
Test of Transactions (Review)
A
test of transactions is an audit procedure used for compliance testing
A
normal business transaction is followed through all of the steps in the
business process
As
the transaction is processed, for each step, all affected accounts are
checked to certify that the transaction is being processed properly
For







this assignment the following accounts (A321) will be checked:
Goods tracked in the inventory control area (in units)
GL inventory
GL cash
GL sales revenue
GL cost of goods sold
GL AR control (Reconciliation Account in SAP terms)
AR Subsidiary Ledger
 As
you step through the assignment, these checks will show how the
transaction is processed
Accounting Information Systems
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Display Document Flow Feature
The
Display Document Flow feature of the SD module of SAP shows
how all of the documents in the sales process are related and the
completion state of each document at any point in the process
This
is a great illustration of how SAP generates documents at each
step of a transaction
It
is also a great illustration of the integration of the SAP system
Because
of the linking one document to other related documents, you
can select a document and view any prior or succeeding documents
Accounting Information Systems
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Accounting Information Systems - Module 4 Assignment
Sales Example Using SAP ERP
Assignment Learning Objectives:
Experience the steps in a typical sales transaction
See
how an ERP system handles a typical sales transaction
Work through the procedures involved in a test of transactions
Look at a special feature of the sales and distribution (SD)
module of SAP
Accounting Information Systems
NOTE: You are to enter information into the system and also answer questions
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Accounting Information Systems - Module 4 –
Assignment Steps
Create a Customer Master Record
Set up Credit Limit for the Customer
Check Inventory Availability
Create a Sales Order
Display the Sales Order and Record the Scheduled Delivery Date and Pricing
Information
Create the Delivery for Sales Order
Post the Goods Delivered in General Ledger and Appropriate Sub-Ledgers
Create an Invoice (Bill) for the Delivery
Receive and Post the Incoming Payment in General Ledger and the SubLedgers
Accounting Information Systems
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Accounting Information Systems - Module 4 –
Assignment - Things to Consider
While completing this exercise make sure to think about the following
controls:
1. Application Controls: (See list on last two pages)
2. General Controls:
•
Segregation of Duties
•
Proper Authorization
•
Adequate Documentation
•
Independence Checks
•
Control of Physical Assets
Accounting Information Systems
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Accounting Information Systems - Module 4 –
Assignment
NOTE:
You are to enter information into the system and also answer questions embedded
within this assignment. Whenever an XX appears in the problem, you should enter
your assigned two-digit number.
Log into the Riga instance, use client 300 and your USER-XX for your user name.
An abbreviated assignment sheet is provided for you to complete.
Accounting Information Systems
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Application Controls
IT application controls are fully-automated (i.e., performed
automatically by the systems) and designed to ensure the
complete and accurate processing of data.
These controls may also help ensure the privacy and
security of data transmitted between applications.
Data that does not conform to these rules will have a
negative impact on data integrity.
(Source: Arkady Maydanchik (2007), "Data Quality Assessment", Technics
Publications, LLC)
Application Controls, cont.
Check – the application checks to see if only expected
characters are present in a field (for example, a name should only
include alpha characters)
•Field
Check – checks to see if the data being entered has the
proper sign - positive or negative (for example, a cash deposit
should only be a positive number)
•Sign
Check – checks to see if the data being entered doesn’t
exceed the limit authorized (for example, the largest number of
cups that can be ordered for the coffee shop is 1,000)
•Limit
Check – checks to see if the data being entered is within
the range allowed (for example, an Espresso Coffee purchase
order can be no smaller than for one item and no larger than for
1,000 items)
•Range
Source - Wikipedia
Application Controls, cont.
Check – checks to see if the size of the data entered is consistent
with the data type (for example, a U.S. phone number should be ten
digits in length)
•Size
Check – checks to ensure all data was entered and
processed from initiation to completion (for example a purchase order
form requires an item number, item quantity and item price to be
entered. The system would make sure all of these data was entered
and processed based on the rules defined in the system)
•Completeness
Check – checks to ensure only valid data is input or processed
(for example, if a customer enters Boulder for their city, the system
would check to make sure the zip code is a valid code for Boulder)
•Validity
Test – checks to see if data entered in the form is
reasonable (for example, a customer who has consistently ordered ten
lbs. of coffee a week submits an order for one hundred lbs.)
•Reasonableness
Source - Wikipedia