MIS 171 test 1 Flashcards
Information System
Is a system that allows us to accomplish the tasks of storing, retrieving, and safeguarding information.
Business Process
is a set of work activities with preferred order, an identifiable beginnings and, inputs, and clearly defined outputs that add value to the customers.
Business functions
Are activities specific to a functional area of operation.
Business process re-engineering
is the analysis and design of workflows and processes within an organization. Is basically the fundamental re-thinking and radical re-design, made to an organization’s existing resources. It is more than just business improvement.
Data
Facts
Information
Facts with meaning
Knowledge
Application of expertise to information
Components of an Information System
Hardware, software, Procedures, People
What is Enterprise Resource Planning (ERP)?
Enterprise Resource Planning, or ERP, systems support the core business of many large enterprises
Supplier Relationship Management
SRM, systems are an extension of ERP systems. SRM systems manage information about suppliers such as material quality, delivery lead-time and historical cost.
Customer Relationship Management
CRM, systems manage information about customers. These systems aim to gather and store as much information about a customer as possible.
Knowledge Management System
Manage the collective knowledge and expertise of an organization.
Content Management System
manage information to be presented on websites. Allow for ease of translation, re-structuring and rebranding of website content.
Scalability
Concerns how large the system can become, in terms of data volume and number of users.
Availability
Concerns how easy it is to access a system, and whether there is any planned or unplanned time that the system is unavailable.
Throughput
Concerns the time it takes to process tasks and how many tasks can be performed concurrently before this processing speed begins to degrade.
Reliability
Concerns whether the system behaves consistently at all times for all users, for similar tasks performed with similar data.
Security
concerns whether the system can be compromised through unauthorized access, theft of data, and intentional corruption or destruction of data. It also concerns itself with the ability to identify how specific users were using a system at any given time, and how they changed the data.
Tiered Architecture Three Broad Categories:
Data storage and retrieval
Computation logic and rules, and
End-user interaction
Client
An independent environment in the system
Company Code
Smallest org unit for which you can maintain a legal set of books
Credit Control Area
•An organizational entity which grants and monitors a credit limit for customers.
•It can include one or more company codes
Sales Organization
An organizational unit responsible for the sale of certain products or services.
•The responsibility of a sales organization may include legal liability for products and customer claims
Distribution Channel
The way in which products or services reach the customer
Typical examples of distribution channels are wholesale, retail, or direct sales
Division
A way of grouping materials, products, or services
Sales Area
Combination of Sales Organization, Distribution Channel and Division
Determines conditions (i.e. pricing) for sales activities
Plant
Plant from which the goods should be delivered to the customer
Other SD organization units:
Shipping Point
•Loading Point
•Sales Office
•Sales Group
•Sales Person
Customer Master
Contains all of the information necessary for processing orders, deliveries, invoices and customer payment.
•Every customer MUST have a master record.
Created by Sales Area
Sales Organization
•Distribution Channel
•Division
The customer master information is divided into 3 areas:
•General Data
•Company Code Data
•Sales Area Data
General Information relevant for the entire organization:
Name,Address,Communication
Company Code specific information:
Acc. Mgmt, Payment,Bank
Sales Area specific information:
Sales Office Currency
Material Master
•Contains all the information a company needs to manage about a material.
•Material master data is stored in functional segments called Views
Condition master data includes:
•Prices
•Surcharges
•Discounts
•Freights
•Taxes
You can define the condition master to be dependent on various data:
•Material specific
•Customer specific
Output is information that is sent to the customer using various media, such as:
•E-mail
•Mail
•EDI
•Fax
•XML
Output examples:
•Quotation
•Confirmation
•Invoice
Sales Order Process
Pre-sales activities
Sales Order Entry
Check Availability
Pick Materials
Pack Materials
Post Goods Issue
Invoice Customer
Receipt of Customer Payment
Sales Support
Is a component of SD that assists in the sales, distribution, and marketing of a companies products and services to its customers. It contains the following functionality:
•Creating and tracking customer contacts and communications (sales activity)
-Phone call records
-On-site meeting
-Letters
-Campaign communication
•Implementing and tracking direct mailing, internet, and trade fair campaigns based on customer attributes
Pre-sales documents need to be managed within the presales activities:
Inquiries and Quotations. These documents help identify possible sales related activity and determine sales probability.
inquiry
is a customer’s request to a company for information or quotation in respect to their products or services without obligation to purchase.
Quotation
Presents the customer with a legally binding offer to deliver specific products or a selection of a certain amount of products in a specified timeframe at a pre-defined price.
Sales order processing
can originate from a variety of documents and activities:
•Customer contacts us for order: phone, internet, email
•Existing Contract
•Quotations
The sales document is made up of three primary areas:
•Header
-Data relevant for the entire sales order: Ex: customer data, total cost of the order.
•Line Item(s)
-Information about the specific product: Ex: material and quantity, cost of an individual line.
•Schedule Line(s)
-Uniquely belongs to a Line Item, contains delivery quantities and dates for partial deliveries.
Shipping process
Begins when you create the delivery document for the sales order.
Delivery Creation
Checks order and materials to determine if a delivery is possible — delivery block (hold), completeness.
Confirms availability.
Confirms export/foreign trade requirements.
Determines total weight & volume.
Delivery Document
initiates the delivery process and is the control mechanism for this process
•Picking
•Packing
•Loading
•Posting Goods Issue
Picking
Quantities based on delivery note
Assigned date when picking should begin
Automated storage location assignment
Supports serial number/lot number tracking and batch management
Integrated with Warehouse Management (WM)
Loading and Packing
- identifies which packaging is to be used for specified products (customer preference and UCC-128
considerations) - Identifies and updates accounts associated with returnable packaging
- Tracks the packed product by container
- Insures weight/volume restrictions are enforced
- All packed items are assigned to the required means of transportation
Goods Issue
- Event that indicates the change in ownership of the products
- Reduces inventory
- Automatically updates the G/L accounts
- Ends the shipping process and prevents changes to the shipping documents
Billing
is created by coping data from the sales order and/or delivery document.
Order-based billing
Delivery-based billing
The billing process is used to generate the customer invoice.
It will update the customer’s credit status.
Billing Documents
The billing document will automatically create a debit posting to your customer sub-ledger account and credit your revenue account.
It is at this point that the sales process is passed over to Financial Accounting to await payment.
Payment
is the final step in the sales order process, this step is managed by the Financial Accounting department.
Final payment includes:
•Posting payments against invoices.
•Reconciling differences between payment and invoice.
Payment will create a posting clearing the liability in the A/R account and increases your bank account.
Document flow and order status
feature allows you to find the status of an order at any point in time. The SAP updates the order status every time a change is made to any document created in the customer order management cycle (Order-to-Cash).
