SAP Key Terms Flashcards
Client
Highest organizational unit for a business
It is the database for GBI
Enterprise Core Component (ECC)
From purchasing, to sales, to accounting
All transactions involved in a business enterprise
Company code
General ledger and accounting database
Cost center
Tracks expenses and compares to the budget
Transaction Code (T-Code)
Shortcut to begin function in one step
Menu Mapping
Navigating SAP menu to find desired transaction
Drill Down
Double-clicking a summary number on the ledger, allowing you to access underlying data
Asset Master
Repository of permanent data associated with a particular fixed
asset
Asset Class
Refers to the broad category of an asset, such as land, building
And equipment
Asset Explorer
Summary report of a purchased fixed asset providing info on
Purchase price, vender and depreciation
Q6: What does ODep Start stand for:
Depreciation calculation start date
What does a debit balance in GR/IR (goods received/invoice received mean?
2) credit in GR/IR?
Received bill but no goods
2) received goods but no bill
Execute
Clock symbol
Vendor
Company you buy materials from
Material master
Repository of permanent data associated with product that you are planning to sell
Key process steps in purchasing 5
1 Purchase requisition 2 purchase order 3 goods receipt 4 invoice receipt 5 GR/IR Account
Purchase Requisition
Source document that indicates need to purchase materials
Begins the purchasing cycle
Reorder point
Purchase requisition triggered when inventory falls to a critical
Level
Purchase requisition: although there is no accounting entires, this is a pre step in setting up…
Internal controls in the purchase process
What is a purchase requisition an important record for?
Audit trail
Purchase order
Document based on purchase requisition that specifies items
Ordered from vendor or supplier
Authorizes purchase process and acts as contract btw/buyer
And vendor
Purchase order: although there are no accounting entries, this document is critical as…
Evidence of purchase being authorized and executed
What does the purchase order document provide access to?
All accounting and control reports
Goods receipt
Term from inventory management denoting a physical inward
Movement of goods or materials
Indicates goods have been received
Goods receipt indicates goods have been received and triggers…
An automatic entry which debits the inventory account and
Credits GR/IR account
The goods receipt provides the most important record of…
Legal transaction having occurred through substantial performance
Of the delivery
Invoice receipt
Term from invoice verification describing receipt of invoice issued By vendor (creditor)
What should the invoice receipt be compared with? Why?
Should be compared with purchase order and goods received
To verify that the goods order was received with quantity ordered
What does the invoice receipt trigger?
An automatic entry to post the bill to payable account:
Debit GR/IR and credit sub ledger payable account
When does the invoice receipt usually occur?
After the delivery of goods
Should be executed close to goods receipt as possible
GR/IR Account
Concept predominately used under IFRS as clearing account
Between the receipt of goods and receipt of invoice
What does a 0 balance in the GR/IR account indicate?
All invoices have been received for corresponding goods
Sales quotation
Customer calls and wants to know if the product is available and
How much you sell for it
No accounting entry done at this time
Sales order
Document based on quotation that specifies items that you are
Going to sell to your customer
No accounting entry done at this time
What does the sales order do?
It authorizes the sales process
And becomes the principal document (contract) between buyer
And seller
Transfer order
Authorizes movement (shipment) of product
No accounting entry done at this time
Picking
Transfers good from the storage location to the shipping dock
no accounting entry done at this time
Post Goods Issued
Critical step that indicates that the goods have been shipped and a sale has taken place
Post Goods Issued, how does it occur?
This is the first point where a transaction entry is put on the ledger
2 Functions of Post Goods Issued
1) reduces the inventory amount on the ledger
2) reflects cost of goods sold for the value of the inventory
Billing
An invoice is sent to the customer for the value of the goods that were shipped
how is Billing recorded?
actual sale is recorded with a debit to the sub-ledger accounts receivable account
and credit to sales revenue
Cash Receipts, define
2) How is it recorded?
Money received from the customer.
2) the cash account will be debited and the sub-ledger accounts receivable account is credited.
Segregation of duties
responsibility of custody of assets should be separate from record keeping and from authorization.
ex. agent who authorizes a sale should not have control over the assets being delivered to a customer/should not have access to accounting records.
Performance
there should be adequate supervision to ensure that there is monitoring of the processes
Performance 3 examples
1 does a manager have the ability to access a report on what is happening with a particular customer with regard to
2 has the product been shipped
3 has the customer been invoiced.
authorization
does the system have the ability to track authorizations
ex. is the sale with an approved customer at an approved price.
records
accounting records should capture the economic essence of transactions
and provide an audit trail of economic events
records, example
can an accounting manager access entries made in the sales process.
check up on performance AKA independent verification
done to ensure the integrity of the accounting system
and the correctness of data contained in accounting records.
ex. managers should review accounting reports daily
Limited Access, 3 with example
most pervasive of controls in that user name and password
should limit the access to the sales process and accounting records
ex. you don’t want someone creating bogus sales and transaction documents
evaluate
system should be evaluated on a regular basis
evaluate: It is currently a requirement of financial reporting that prior to an audit, the system must be assessed for…
any risks that exist in the breakdown of the internal control framework
