Module 3 Revenue Cycle Assignment Hand in Version

Name: ______SAP # (XX): ____

Step 1:

Tasks 1.1 – 1.6 For each of the above accounts under the first tab (Type/description)

examine the entries in the Control in chart of accounts box including the Account group and radio button that is selected. Now explain why each account has the values that are present. (Note: The answers to these questions are very straightforward, but we want you to think about why the system needs to know this information in order to function properly.)

1.1 1001 Cash: ______

______

1.2 2001 Accounts Payable: ______

______

1.3 Before going to the next account, let’s analyze the Accounts Payable account closer. This account is special. Look at the Control data tab and note what the Reconciliation account is. What is this all about?

______

1.4 5001 Cost of Goods Sold: ______

______

1.5 1115 Goods Rcvd/ Invoice Rcvd: ______

______

1.6 Now let’s analyze the Goods Rcvd/ Invoice Rcvd account closer. This account is necessary because of timing differences in the real world. This is what is termed a suspense or holding account. Briefly explain how entries would be made to this account (i.e. What transactions happen and how are they recorded?) and why all transactions in the account should eventually be zeroed out. (If you don’t grasp this concept yet, you may wait to answer this part until you do some of the later transaction steps.)

______

Step 2: Examine System Settings

Write down the fiscal year variant for your company code. _____

2.1 What is the fiscal year variant for your company code (90XX) and what does this mean from the point of view of the accounting system?

______

2.2 The university would use fiscal year variant V6. Explain why this is the fiscal year variant for the university.

______

Step 3: Create a Material Master record for a Finished Product

3.1 What type of application control is used on the field “Base Unit of Measure”? (Pick from the list of controls on pages 1 & 2 of this assignment.)

______

3.2 What type of application control is used on the field “Gross Weight”?

______

3.3 How is the standard price used in the accounting system? (Think about what you did in your cost/managerial accounting class.)

______

Write down the message on the status bar. ______

Step 4: Create a Vendor Master record (we will buy the finished product from this vendor)

4.1 What did the system do as an application control? That is, how did the system know that this was wrong?

4.2 The “Rec. Account” is a very important entry. Explain this entry. (Hint: This links back to the account you looked at in the chart of accounts.)

4.3 What is a tolerance group and how would it be used as an application control? What type of application control is tolerance group?

4.4What are the payment terms from this vendor? Since we are a new customer

for this vendor, we may be able to negotiate changing these terms in the future.

What factors would probably be important to getting more favorable terms?

Write down the message on the status bar. ______

Step 5: Create an Information record for Vendor/Material

5.1 What is this telling us? What kind of a system control is this particular message?

5.2 Explain how the above data can be a strong control in the purchasing process.

Write down the Information record number shown on the status bar. ______

Step 6: Check status of various accounts.

MM Inv. Qty / GL Cash / GL Inv. / GL AP / GR/IR / Vendor Subledger
After Step 5
After Step 7
After Step 9
After Step 11
After Step 13

Step 7: Create a Purchase Order to buy the Finished Product

Write down purchase order number ______.

Step 8: Repeat the checks in step 6 and record in that table.

Step 9: Receive the Product from the Vendor

Write down Material document number ______.

Step 10: Repeat the checks in step 6 and record in that table.

Step 11: Receive the Invoice from the Vendor

Write down Invoice number ______.

Step 12: Repeat the checks in step 6 and record in that table.

Step 13: Make the Payment by Cash to the Vendor

Write down the document number. ______

Step 14: Repeat the checks in step 6 and record in that table.

Step 15: Write down the journal entries the system made

By using the information contained within the table in step 6, construct all of the journal entries that were made by SAP for these transactions. For each journal entry show the step number of the transaction, the accounts debited and credited and the dollar amounts involved. Use the following format:

Step #: Account 1$$$

Account 2$$$

Step #: Account 3$$$

Account 4$$$

… etc.

End of Assignment