Module 4 Revenue Cycle Using SAP Individual Assignment Important Points of the Assignment These slides are designed to supplement the slides that you use in your standard textbook lectures. The contents of this slide set is intended to cover material not typically covered in the textbook material and to highlight the learning objectives of the assignment. Accounting Information Systems

Accounting Information Systems Slide Set Contents 1. Learning Objectives Review of Revenue Cycle Transactions Test of Transactions Display Document Flow Feature Steps in the Assignment Accounting Information Systems

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

Revenue Cycle Transactions Typical Expenditure Cycle Transactions Include: Pre-Sales Activities – The activities involved in making customer contact and providing customers with product information. Since in this assignment we concentrate on the financial accounting aspects, we will ignore these activities. Sales Order – An internal sales order is generated in order to process the transaction. The sales order is usually generated using the information on the customer’s purchase order. Goods Delivery – The goods need to be picked, packed and delivered to the customer. Invoice Generation – For open item billing an invoice is created for each sales order. Receipt of Payment – The customer pays the bill. Accounting Information Systems

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 will be checked: Goods tracked in the inventory control area (in units) General ledger inventory valuation (in monetary units) General ledger cash account General ledger sales revenue account General ledger cost of goods sold account General ledger accounts receivable control account Accounts receivable subsidiary ledger As you step through the assignment, these checks will show how the transaction is processed Accounting Information Systems

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

Display Document Flow Feature Accounting Information Systems

Steps in the Assignment Following are the steps you will do in the assignment: 1. Create Sales Views for Big_TrophyXX 2. Create a Customer Master record 3. Set up Credit Limit for the Customer 4. Check inventory availability 5. Check status of various accounts 6. Create a Sales order 7. Display the Sales Order and record the Scheduled Delivery Date and pricing information 8. Display the Document flow 9. Check status of various accounts 10. Create the Delivery for Sales Order 11. Check status of various accounts 12. Display the Document flow Accounting Information Systems

Steps in the Assignment Following are the steps you will do in the assignment: 13. Post the goods delivered in General Ledger and appropriate Sub-Ledgers 14. Check status of various accounts 15. Display the Document flow 16. Create an Invoice (Bill) for the Delivery 17. Check status of various accounts 18. Display the Document flow 19. View the Invoice in Print Form 20. Record the accounting document 21. Receive and Post the Incoming Payment in General Ledger and the Sub-Ledgers 22. Check status of various accounts 23. Display the Document flow Accounting Information Systems