ERP Exam Review

Set of activities that produce desired outcomes. Every process is triggered by some event. Procurement, Production, Fulfillment. Integrated means they all are connected to work together.

Define business processes and what it means to have integrated business processes?

Enterprise System

Systems that support end-to-end processes. Increase profitability, productivity, and competitiveness by removing barriers between functional areas.

CRM, Supply Chain Mgmt., ERP. Benefits of a CRM System: Connecting ERP with CRM allows a company to get closer to its customers.

Provide examples and benefits of the enterprise systems?

ERP

Largest and most complex enterprise system. Focuses primarily on intra-company processes. business process mgmt. software that uses a system to facilitate information flow between all business functions inside the organization (SAP, Microsoft Dynamics AX, SAP Business One.

Silo Effect

A tendency where workers complete their tasks in their functional "silos" without regard to the consequences for the other components in the process.

Business Processes

A set of tasks or activities that produce a desired outcome.

Procurement

The set of tasks or activities that are concerned with acquiring needed materials externally from a vendor to attain an inventory level satisfactory for production and fulfillment processes.

Fulfillment

The set of tasks or activities that are concerned with selling and delivering the products to the organization's customers.

Materials Planning

The set of tasks or activities that are concerned when and how many materials will be procured or produced.

Production

A set of tasks and activities that are concerned with acquiring needed materials internally by converting raw materials into semifinished goods and raw materials and semifinished goods into finished goods.

Project Management

A set of tasks and activities that are concerned with planning and executing large projects such as the construction of a new factory or the production of complex products such as airplanes.

Inventory Management

The set of tasks or activities that are concerned with with the movement of material in and out of storage locations in plants.

Warehouse Management

A set of tasks or activities that are concerned with the efficient storage and removal of materials from storage bins and allow more granular movement of materials than inventory management.

Software Architecture

The technical structure of the software or the ways that users interact with the software and the ways the software is physically managed on computer hardware.

1. Warehouse- Create purchase requisition

2. Purchasing- Create and send purchase order

3. Warehouse- Receive materials

4. Accounting- Receive invoice

5. Accounting- Send payment

What are the steps in the procurement process?

1. Sales- Receive customs purchase order

2. Sales- Create sales order

3. Warehouse- Prepare shipment (pick and pack)

4. Warehouse- Send shipment

5. Accounting- Create and send invoice

6. Accounting- Receive payment

What are the steps in the fulfillment process?

Customer Relationship Management Systems (CRM)

Connect a company's ERP System to its customer, giving the company capabilities to manage marketing, sales and customer service.

Product Lifecycle Management Systems (PLM)

Helps companies administer the processes of research, design and product management. Helps companies take product ideas from the drawing board to the manufacturing facility.

NetWeaver

SAP Operating System?

Organizational Levels

Used to represent the structure of an enterprise. Includes companies, subsidiaries, factories, warehouses, storage areas and sales regions.

Client

Is the highest organizational level.

Company Code (CC)

Can have many plants, but only one client.

Plants

Can have many distribution channels but only one Company Code.

Raw Materials

Purchased from a vendor and used in the production process. Procurement / Production

Semifinished Goods

Are produced in house from other raw materials and used in the production process. An example of this would a wheel assembly. Procurement / Production

Finished Goods

Created in production from raw materials and semi finished goods. Production / Fulfillment

Trading Goods

Purchased from a vendor and resold to customers. Purchasing / Selling

Meet legal requirements

The goal in financial accounting is to?

General Ledger

Used to record the financial impacts of business process steps.

Accounts Receivable

Associated with the fulfillment process and is used to manage money customer owe to the company.

Accounts Payable

Associated with procurement and are used to record and manage money owed to vendors.

Asset Accounting

Used to record data related to the purchase, use and disposal of assets.

Bank Ledger Accounting

Concerned with recording data associated with bank transactions.

Subledger Accounts

Ledgers that are not apart of the general ledger and are used to track individual customer receivables (A/R), vendor payments (A/P) and asset information (individual company cars for example).

Reconciliation Accounts

Are general ledger accounts that consolidate data from a group of related subledger accounts -- Accounts receivable, accounts payable, asset account information.

Double Entry Accounting System- Where every transaction has a debit and a credit.

General Ledger Accounts are known as...

Material, quantities received, location, date, time.

Data that is used in a Goods Receipt?

Tangible Assets

Assets that have a physical form (computers, machinery, buildings).

Intangible Assets

Assets that are non-physical (intellectual property, patents, trademarks).

The Purchasing organization handles the procurement process.

What task does the Purchasing Organization handle?

1. three-way match (most common)

2. two way match

Examples of Invoice Verification? (ensuring information is consistent across all documents)

three-way match

Match the purchase order, goods receipt document, and the invoice.

two way match

Match the purchase order and the goods receipt document.

- It does not include sales taxes in calculating prices (in the United States).

- It requires a minimum volume of purchase and offers volume discounts.

- It may designate a specific plant or plants from which deliveries are made.

Characteristics of the wholesale channel?

Parallel accounting

Multiple ledgers are parallel for different purposes.

Web Services, EDI, Fax, Print

Media that can be used to communicate with vendors in SAP?