SAP Submission 1

Liang Zhang
UTAS ID: 220643
lzhang29@utas.edu.au

9th August 2015

Week 16 Sales and Distribution

Task 1: Explain in your own words the major tasks in Sales and
Distribution and explain how SAP has streamlined its process.

Sales and distribution are the main functional parts in business process, which contain a
series of tasks to support sales performance and market share, connecting closely with other
functional departments in an organisation. Sales and distribution tasks include making sales
forecasts based on product availability data from supply chain, receiving and confirming
sales orders from customer, making contact information for customer, checking production
availability based on inventory data, dealing with customer, order or delivery changes,
placing extra orders to manufacturer if storage is not sufficient, maintaining billing document,
checking packaging and tracking progress, creating outbound delivery of goods, confirming
payment, creating invoice and sending it to the customer. All these tasks are closely related
and data among different departments need to flow accurately and timely.
SAP has schematized and streamlined the process of sales and distribution in organizations.
As a strong system supporting every part in the organisation, data from each functional
department can be stored in a federated database, which also can provide almost real-time
data sharing and data flow to a large extent. SAP has also standardized and subdivided all the
tasks in detail. For example, when a sales man receive a number of orders from customer, he
can deal with them in batches and get relevant data of storage, production, payment, and
delivery from the system timely. Whenever the customer needs to change or follow up the
order, the sales man can deal with them quickly and accurately through SAP. The crossfunctional process of business can be achieved and guaranteed. The structure of the system
has followed the functional logic and relationship in real business, which makes the whole
sales and distribution process more smoothly and efficiently. SAP provides a flexible and
completed solution in sales and distribution management (SAP Group 2011).

Reference:
SAP Group 2011, Sales Order Management: Streamlined Order Fulfillment in Wholesale
Distribution, SAP Solution Brief, viewed on 9th August 2015,
<http://www.sap.com/bin/sapcom/de_at/downloadasset.2006-03-mar-28-03.sales-ordermanagement-streamlined-order-fulfillment-in-wholesale-distribution-pdf.html>.

Task 2: Produce and submit the screenshots on pages 28, 34, 40 and
45. Make sure for every screenshot you include your user ID.

P28

P34

P40

P45

Task 3: Using the tasks in the Sales and Distribution process specify the
series of tasks to be done in SAP to complete the following scenarios:

A customer has phoned to inquire about the availability of

10 black deluxe bikes. On confirmation of the available stock
the customer puts in an order of 10 bikes for delivery in 10
days. However, before the delivery date, the customer
requests to reduce the order to 8 bikes. The process finishes
after the customer makes the payment on the 8 bikes.

All of the tasks need to be done in SAP can be specified as following.

At first, we need to create the mater data for this customer if it is a new customer for the
system. After that, we will create the information of the contact person for this customer. The
contact person can be a representation of the new customer for us to communicate with.
When we receive the inquiry from the customer, we need to check the stock status for the
inquired production. After the availability of 10 black deluxe bikes is confirmed, we start to
create the new order for the customer. According to this scenario, the order will include 10
black deluxe bikes and the required delivery date is 10 days after today. The outbound

delivery document also needs to be created based on the information. We can also create a
Customer Quotation for this customer for further business and then create the sales order
referencing this quotation. Before the delivery date, the customer changes the inquiry and
reduces the number of production from 10 to 8. After confirmation, we have to post this
goods issue in the system and change the sales order information. The outbound delivery
information should also be changed based on this order change. Then we should check the
stock and confirm that the number of stock scheduled for delivery has been reduced to 8.
After the delivery has completed, we need to maintain a billing document of this new order
and create the invoice for the customer. At last, after the customer has made the payment, we
need to post a receipt of this payment for recording.

Week 17 Financial Accounting

1. Based on the GBI_Case_Study_Finanial Accounting_v2.11
document, submit the screenshots on pages 12, 14, 17.

P12

P14

P17

2. Review the whole document and explain in your own words what
the exercise tries to demonstrate. Also explain, with some
research, why SAP can help to streamline accounting processes.

This exercise according to whole document has demonstrated a specific functional process of
finance accounting department. In other words, it describes how to complete a financial
accounting process through SAP. In this case study, they take an accounts payable process for
a rental fee payment as an example. The process has contained a detailed workflow as
following: creating a new bank account, reconciliation account, or expense account in general
ledger, creating cost element for expense account, creating the vendor master record for

landlord, creating invoice receipt for rent expense, displaying and reviewing G/L Account
balances, accounts payable balances and individual line items before and after posting
payment to the landlord, and at last running a trial financial statement.
SAP system has helped standardized and streamlined the process of financial accounting,
which has provided an accurate and timely means in financial management. In recent years,
SAP has become more and more commonly utilized in financial department of many large
companies because of its efficiency, accuracy and steady. According to SAP.com, SAP can
provide better decisions following regulatory rules and strict filing deadlines. At the same
time, SAP can also produce accurate and transparent financial reports. Additionally, it can
streamline and automate finance workflow with less errors and costs (SAP Group 2015). All
the data existing in SAP can flow freely and timely within the whole system to maintain
accuracy and timeliness. The structure and workflow are strictly close to real cases and
simplify the financial governance. The streamlined process brought by SAP has saved time,
fund, and human resources.
Reference:
SAP Group 2015, Achieve a timely, accurate, and compliant close with our accounting and
financial close software, SAP.com, viewed on 9th August 2015,
<http://www.sap.com/australia/solution/lob/finance/software/accounting-financialclose/index.html>.

3. Based on Controlling Case Study Cost Center Accounting (COCCA) document, submit screenshots of pages 15 and 20.

P15

P20

4. Explain in your own words the objective of Cost Center Control.

This requires some research and your understanding of the tasks
in the document.

The case study material has led us to understand the specific steps of the cost center
accounting underlying the support of SAP system. A cost center can be defined as a unit that
concerns about and take control of costs within an organization. The process of cost center

accounting in SAP can be described as following steps: creating cost center, creating
statistical key figure and secondary cost elements, creating activity, creating cost center
group, planning the number of employees, planning activity output, primary cost inputs, and
internal activity inputs, creating assessment, and doing the price calculation of activity types.
All of these steps can make it clear that we can make an efficient, visual and logical
coordination, allocation, and assessment for the costs in different functional department of
organizations through cost center accounting.
According to Ozyasar (2015), the most important purpose of cost center control is to track
any expenditure occurred within a functional unit. With the help of cost center, a company
can measure how much it is spending per year for a specific service existing in its business
fast and accurately without too much effort. Additionally, this ability to track costs can make
the allocation of resources more wise and proper, which can also guarantee the sustainable
development of business functions. Utilizing a cost center can help organization control total
costs, allocate resources, and measure profitability for specific production or department.
Reference:
Ozyasar, H 2015, What Are the Functions of a Cost Center in a Management Accounting
System? , Demand Media, viewed on 9th August 2015,
<http://smallbusiness.chron.com/functions-cost-center-management-accounting-system76935.html>.