Goal of Business Process WorkshopPresentation Transcript
GOAL OF BUSINESS PROCESS WORKSHOP
Identify all of the business processes, at a high-level
Define the type of data (in a high-level) that will be maintained in the processes.
High Level Business Process Overview
Asset Management/Investment Management
Sales and Distribution
Define the Business Processes and data in SAP based on the Chico Creek Brewery’s Organizational Structure
Document the Company’s SAP Business Processes
Definition of Business Processes
Project System - Business Processes
Creating a project
Developing a project
Executing a project
Analyzing a project
Closing a project
Project System - Components
Project Definition – Stores master data for the entire project, including overall start and end dates, project owner, project number, and description.
Work Breakdown Structure (WBS) – The hierarchy that the WBS elements are organized into. Breaks down processes into the smallest components or tasks.
WBS elements – The building blocks of the project. They represent different phases or parts of the project. Each WBS element is a cost object. All project costs are posted to WBS elements.
Network (optional) – The activities are linked together to create the network in the form of a PERT chart. SAP can determine the critical path from this.
Project System - Features
Cost Planning (via the WBS)
Date Planning and Scheduling
Link to Purchasing (Purchases made show up immediately as project costs)
Graphic Displays (Network, WBS, Gantt Charts)
Continuous Process Scenario overview:
manages the planning, execution, and control activities for our process-oriented manufacturing of beer.
4 Basic Steps that encompass our brewing process……..
Step 1 of Continuous Process
Begins with the Sales and Operation Planning
forecasting tool, ie. used to helps decide specific number of batches of each type of beer that should be made
Long-term production plan and Master Schedule are produced using SOP information
Step 2 of Continuous Process
The master flow is computed using the MRP and capacity leveling.
Capacity leveling: is determined in step 1 and balances the master schedule and plant capacity
Material Requirements are passed to the procurement process
Step 3 - Continuous Process
The process order is created and manages the actual production of the beer
process order transforms materials and processes used with the master recipe into actual information that is needed to brew the batches of beer
contains master recipe data and workflow instruction
master recipe: description of materials needed in one production run (grain, purified water, hops, fermented sugar, barley malt)
Step 4 - Continuous Process
Actual production which is the completed scenario flow
Material is received, the resources are used, and the process order is completed and closed out
resources: production personnel needed for production (maintenance workers, forklift drivers, line workers, warehouse personnel)
External Accounting Vendor Processing OTA Vendor Processing Special Purpose Ledgers Processing Consolidation Customer Processing General Ledger Processing Credit Subsidiaries Head Office Process
General Ledger Processing
Generates closing reports as required by law
company code (CO)
business area (not applicable for the CCBC)
chart of accounts (each module will give input)
General Ledger Processing
assets accounting (AM/IM)
Vendor Invoice Processing
Connects Purchasing to Accounting
Master Record consists of 3 parts
general data (addr, telephone, etc.)
company code data (payment terms, methods)
purchasing organization data (p.o., quotes)
most of this information comes from MM and is posted to G/L
Vendor Invoice Processing
Posted to one of two accounts:
current assets account
fixed assets account (will go to AM)
also posted to G/L
Mgmt of transactions for standard customers
Credit Management (Sales)
closely linked to CO & cash forecasting
Customer Master Record consists of 3 parts:
general data (addr, telephone, etc)
company code (form of payment, due dates)
sales data (shipping, invoicing, etc.
this info is mostly from the sales team
all the transactions are posted to the G/L
Dunning procedures remind customer that the payment is overdue
Info needed from SD:
level (# of days overdue)
text (strength of language)
optional interest & charges
print-out of payment (due deadline)
Functional Areas - CO Chico Creek Brewing Company
Conventional cost center accounting typically structures costs by using the company’s
organizational structure and areas of responsibility (e.g. functions).
This shows where costs accrue in the company, but it does not specify what
resources were used how .
Company Personnel R & D Marketing Production
Process-Oriented Structure Functional Areas:
SAP uses a process-oriented view that considers costs on the basis of process organization
across functions. Costs are debited to a business process based on its resource usage.
The business planning and controlling scenarios in R/3 provide conventional
cost center accounting capabilities but supplement these by allocating cost center
costs to business processes.
Personnel R & D Marketing Production Business Processes: Order Process Product develop. Customer service FI Accounting
Business Scenarios - CO Chico Creek Brewing Company Business Planning and Controlling CO Module 1. Cost Object Controlling 3. Profit Center Accounting 4. OH Cost Management 2. Profitability Analysis
1. Cost Object Controlling
Cost object controlling is a part of product cost accounting
that focuses on the economical creation of a product (called
It supplies key information for planning and
monitoring of product costs.
Product cost controlling attributes the costs incurred in a
company to its output units. (products, orders)
2. Profitability Analysis
Profitability analysis carries out a profit analysis. Costs are
compared to revenues. This is the last step in the settlement process.
Profitability analysis takes an external viewpoint using actual data,
by looking at market segments.
We propose that CCBC’s profitability segments are based on
product line. (Type of beer, pub, merchandise)
Other options could be customers, activity, organization,
geographical area, etc.
3. Profit Center Accounting
The goal here is to have a structure according to profit responsibility.
Profit centers can be seen as investment centers.
Shows operating results from a management standpoint.
It is a statistical package, pulling data from different modules.
Data is primarily transferred from FI, SD, AM, and MM.
Profit centers can be structured according to products, markets,
or functions. We have chosen products.
FI : Transfer of primary costs and revenues from customer invoice processing SD : Transfer of revenues and sales deductions (freight, discounts) as well as reserves (e.g. from rebate agreements) via invoice transfer. MM : Transfer of all costs from goods movements (consumption postings, materials receipt, invoice receipt, price changes/revaluation, inventory differences) AM : Availability of all profit-related data from the creation, utilization, and sale of capital goods 3. Profit Center Accounting, cont’d
3. Profit Center Accounting, cont’d
4. Overhead Cost Management Overhead cost management plans, allocates, controls, and monitors indirect costs. All indirect costs are charged to the cost centers where they were incurred or to the jobs that led to their occurrence.
CAPITAL ASSET MANAGEMENT Fixed Asset Processing Leased Asset Processing Planned Plant Maintenance Plant Maintenance due to damage Project- related plant maintenance Budgeting Cash Management
Fixed Asset Processing
Asset master record maintenance:
Creation/Transfer of Reserves
AM - Depreciation
Planned depreciation is calculated automatically
Can be recalculated or changed manually
Calculated in multiple depreciation areas (parallel valuation technique)
Depreciation values are transferred as planned and actual costs are allocated to cost centers (CO)
Depreciation simulation and forecasting available for individual asset or group of assets.
Asset Master Record Data
Elements of an Asset Master Record
INVESTMENT MANAGEMENT SCENARIO Budget Approval Budget Distribution Measures Reporting Program Structure Project Planning Roll-Up Corporate Planning Settlement & Capitalization
IM - AuC to Asset Capital Order (greater than 30 days) Create AuC -Automatically created when investment profile is entered and order is released Settlement -Settles to AuC AuC Depreciation forecast and simulation interest calculation. ASSET
Treasury - TR
Cash Management (TR-CM)
Handle all cash related transactions and reporting activities.
Distinguishes between actual money and payments in transit
Integrated with G/L, A/R, and A/P systems and sales and procurement.
Funds Management (TR-FM)
TR-CM G/L A/R A/P Recurring Entries
The basic elements needed for managing cash:
Where is our cash?
What will we receive?
What will we pay?
What other predictable transactions will occur?
Funds Management (Budgeting)
Monitor budget by tracking the achievement to targets in each of the budgets divisions
To perform these functions the following must be estimated:
Cash requirements for operations
Cash requirements for CI projects
Planned cash receipts
Materials Management Processing Stock Material
Materials Requirement Planning
plan goods issue
Single item MRP
Effects SD, QM, PP, FI
Materials Management Processing Stock Material
Requisition Processing to Stock Material
Requirement for material --> Purchase Requisition
Source of supply
Without a source of supply
Purchasing Outline Agreement
Effects SD, PP, QM
Processing Stock Material
Processing of RFQ Issued to Vendor
- Communicates material/service requirements to
- Input Examples
• Purchasing Information
• Supply Source
• Effects SD, QM, PP, CO
Materials Management Processing Stock Material Vendor Quotation Processing - Occurs after vendors respond to quotation request - After Vendor information is submitted into system, price comparison is possible - A rejection notice is transferred if quotation is unselected
Materials Management Processing Stock Material Purchase Order Processing for Stock Material - Vendor quotation processing and vendor RFQ processing trigger this step - Input Examples Purchase Requisition Material Internal Order Customer Order Cost Center - A Purchase Order includes detailed data such as: type of material, quantity, delivery date and price
Materials Management Processing Stock Material Processing Goods Receipt - Begins with the arrival of materials and shipping notification - Material is checked and storage is determined - If order is accepted we adjust purchase order dates and select a valuation type -Effects FI, PP
Sales and Distribution Business Process Workflow Scenario: Standard Order Handling
Vendor (Internal i.e. MM)
Beer for tap room, souvenirs
Employee in Company (salesperson)
Grouping of items to make available for sale (I.e. By a pallet of Pale Ale)
If customer frequently purchases from a product proposal, this information can be assigned in Customer’s Master Data
Wants to buy two kegs of Pale Ale and one keg of Hefeweisen to be delivered weekly.
Sales Representative gets Pat’s company name, address, etc. to store in sales support master data. Also determines the distribution channel for his company for correct quotation.
Accesses inquiry processing to determine correct prices, a quotation process document is created and sent.
Pat agrees to the quotation. Next, standard order processing occurs with reference to the quotation.
Product is determined to be in-stock
A credit check occurs and passes resulting in Pat’s order being released
Delivery processing occurs in which is it determined that the delivery is relevant for billing and for shipping.
Process determines that the purchase is not relevant for a rebate
Billing document is sent
Export papers are created and sent
Billing document is not released for billing because:
Order confirmation is necessary to release billing document
Transportation planning occurs
Shipment route is determined (stored in Master Data for future reference)
From Chico Center to Chico train depot via truck
From Chico to Calgary via rail
From Calgary train depot to Calgary distribution center via truck
From distribution center to customer (Pat’s Bar is within 100 mile radius)
Transportation processing occurs
Shipping notification is generated and sent to customer
Delivery of Goods
Quality is checked (by PP, referenced by SD)
Order is sent to MM
Goods issue is posted
Truck is loaded from plant site and sent
Upon delivery to Pat’s Bar, it is determined that one keg of Pale Ale is damaged.
Pat signs invoice for acceptance of the one keg of Pale Ale and one keg of Hefeweisen.
To accommodate for damaged goods, CCBC will:
a) Offer to send Pat’s Bar a keg through a rush order with no extra cost. Delivery will be rushed
b) Offer to give Pat’s Bar a credit.
Signed invoice is given to FI for processing
Empty kegs picked up from Pat’s Bar upon next delivery
Returnable packing pick-up process occurs
Shipping papers are created
Empty kegs loaded onto trailers
Trailers loaded onto train to be sent back to Chico center
MM processes goods receipt
Goods receipt is posted
Pat’s Bar is now CCBC’s business partner, thus is located in our Master Data
CCBC can now call him as part of our sales activities or he can call on us.
If Pat’s Bar becomes a frequent customer, CCBC can assign material listing or product proposal to his account making transactions faster.
Inquiry Quotation Returns Standard Sales Order Delivery Free Of Charge Scheduling Agreement Sales Delivery Transport Shipping Debit Memo Invoice Credit Memo Financial Accounting M a t e r i a l s M g m t Billing
Organizational Plan Processing
Processing of Employee Status for Planning and Development
Personnel Cost Planning
Long Term Daily Work Schedule
Flexible Daily Work Schedule
Multinational tax, benefit, and garnishment related laws and regulations
Automate the workflow system and be flexible enough to adapt itself
Automatically transfers data to general ledger and cost accounting systems
Structuring and Managing of salary and reward compensation packages
Can analyze the effects of salary increases and decreases
Administering human resource benefits
setting up each benefit plan
define cost and coverage options
eligibility rules established
Step-by-step guides for developing, defining, and maintaining benefit plans
Eligibility rules based on predetermined criteria defined and verified by the system