Module 4 Instructor's Notes

he point that should be stressed is the Display Document Flow function in the sales and distribution module.

2.1In general, what information should be entered by the sales personnel?

All customer relationship information should be entered by the sales staff.

and what data should be entered by the accounting department?

The customer’s financial information should be entered by the accounting area. This is confidential information that the sales people don’t need to access, and provides segregation of duties.

4.1 If the customer is ordering 20 items, do we have enough to fill the order?

If both this and the previous assignment were completed properly, then there should be 50 units available.

4.2 One of the auditor’s roles is to verify inventory values. Show how you would verify the dollar value in the ledger account with the material amount that you found in the above step. Hint: What is the cost of the good?

Unit costinformation from the material master record times the units in the inventory control area and then compare that with the G.L. Resale Merchandise Inventory account.

4.3What documents would the auditor look for to verify the cost? Hint: Think about the previous assignment.

The auditor should look at the purchase orders and invoices for the goods (i.e. the vouchers) to verify the amount paid for the goods.

5. Check status of various accounts.

Sales Customer

MM Inv. GL CashGL Inv. Revenue COGS GL AR Subledger

After Step 4 / 50 / -$1,500 / $1,500 / 0 / 0 / 0 / 0
After Step 8 / 50 / -$1,500 / $1,500 / 0 / 0 / 0 / 0
After Step 10 / 50 / -$1,500 / $1,500 / 0 / 0 / 0 / 0
After Step 13 / 30 / -$1,500 / $900 / 0 / $600 / 0 / 0
After Step 16 / 30 / -$1,500 / $900 / -$1,000 / $600 / $1,000 / $1,000
After Step 21 / 30 / -$520 / $900 / -$1,000 / $600 / 0 / 0

7. Record the cash discount for this item$20.00 or 2%

8. Display the document flow for the sales order using the following menu path.

The sales order should display, and status will say open.

12. Display the document flow

The sales order status should be listed as completed, the delivery as being processed, and the items picked as completed.

15. Display the document flow

The sales order as completed, delivery being processed, picking completed, goods issue complete ($300)

16. What is the data value in “Net Value”? $1000

18. Display the document flow

Standard order completed, delivery completed, picking completed, goods issue completed, invoice generated, accounting document not cleared.

23. Display the document flow

Standard order completed, delivery completed, picking completed, goods issue completed, invoice generated, accounting document cleared.