...leadership strategy, that is, to try to sell more products at a lower price. (a) What are the implications of this strategy change for the revenue cycle? (LO1). This strategy change will have big implications for the revenue cycle, which is fundamentally driven by the level of sales. All existing policies and procedures will be geared around volume, pricing and quality targets flowing from the product differentiation (high price / high quality) strategy. To move to a cost leadership (high volume / low price) strategy requires revisiting and realigning existing policies and procedures. (b) What changes would you expect to see in the revenue cycle? (LO4). Assessing changes in the order of the processes in the revenue cycle: 1.1 The inventory check would be performed as described however the policy relating to tolerances on inventory decisions may alter, allowing Brisbane Ltd to accept orders that they may previously have not processed. The logic behind this is that a product differentiation strategy promotes a desire to maintain high levels of customer satisfaction and service, however under a cost leadership strategy customer service, while still important, may be overridden by desire to maintain sales volume. Risking offending a customer by promising to supply and...
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...the fact that spreadsheets are prone to errors, lack audit capabilities, and resist internal controls. This, and other findings, is from a new report by www.RevenueRecognition.com and IDC, “Enterprise Systems and Revenue Recognition: The Missing Link”. Revenue Spreadsheets: The Compliance Killers These results should be alarming for corporate finance departments, executives, and investors alike, because: 1. The risks introduced by spreadsheets violate basic compliance principles. 2. Revenue accounting problems are the leading cause of financial restatements. 3. The number of restatements is on the rise. As a result, compliance managers should be addressing the issue of having spreadsheets in the revenue reporting process. Executives should be extremely cautious about the integrity of the numbers they are attesting to under Sarbanes-Oxley requirements. Investors have to be wary of the risks of restatement which can hurt stock prices. http://www.alacra.com/acm/2033_sample.pdf The Functionality Gap Financials/ERP systems manage operational data flows throughout an enterprise, but they may not automate critical tasks in the revenue recognition and reporting workflow. This causes a break down in the financial reporting...
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...A3: SAP SD The sales order exercise in the SAP system gives you practice in simulating the roles played by numerous users/departments in an actual business setting. As you work on this and other SAP assignments, see if you make your experience exploratory and playful. Using SAP, work through all the seven steps shown in the OSU lab 3: sales ordering exercise from our SAP Materials page. A. For EACH step 1 through 7, answer the following questions: 1. Explain in your own words what you are doing in this step and why it is necessary to perform the step. In this step, we create an inquiry to a customer that tells them the price of specific quantity of the product, they would like to order. An inquiry is created by following the menu path: Logistics Sales and Distribution Sales Inquiry Create. As shown in the figure below, Sold-to-Party and Ship-to-Party fields are populated by searching with dataset# 70 and selecting 70 West Hills Athletic Club. A purchase order number WH170 is created for the inquiry. Also the duration for which this inquiry is valid, is defined by setting Valid from and Valid to fields. The material which customer wants to buy is entered in the Material column and the quantity in Order Quantity column. The availability of the product can be viewed by selecting the row and clicking on the Display availability icon () The net cost and discount details can be viewed by selecting the row and clicking on item conditions icon (). Figure given below shows...
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...Old Hickory TV in Nashville, Tennessee, and opened 3 more stores. In 1989,Gerald Throgmartin became Chairman and Chief Executive Officer. 2003 HP announces HP 3000 will no longer be supported By the summer of 2006, Gregg’s was operating more than 60 stores and the company’s strategy of offering out- standing, personal customer service and competitive pricing through a team of well trained associates was working well for the company. ISSUES/PROBLEMS In 1985, the company would have to move to a computer-based order processing, inven- tory, and warehouse management system The system required the system to provide application func- tionality to include: • Inventory management • Purchase order management • General ledger • Accounts payable and accounts receivable • Sales order processing/commission management • Merchandise warranty tracking/customer service • Advertising accruals/volume rebates • Delivery After a thorough review process that included several...
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... Advantages: - Peachtree is an easier process compared to a manual process. Almost all professional accountants know how to use Peachtree. It is a system that takes a difficult and complex process and redesigns it into an easy process. - Less time and labor is consumed. In the purchase order, Peachtree could automatically create a Purchase Order or Sales Invoice and fill in the prices on it, whereas we’d have to manually duplicate a PO or Sales Invoice and then calculate the prices. - It is more accurate than the manual process. The Peachtree software always ensures that all the entries go to the correct general ledger or subsidiary ledger. In the cash receipt process, the SUA system requires all entries to be written, and journals to be filed. Peachtree provides an automated system that’s easier to record and follow. In the SUA system, on the other hand, it is easier to record incorrect data. - Less paper work and less chance of losing data. Peachtree helps prevent lost data. Most of the files are stored in the computer. - Physical inventory is controlled. In the shipping and billing process, the SUA system required employees to pick inventories and manually file documents, but Peachtree provides customer purchase orders before picking inventory, which decreases the risk of having inventory stolen. Peachtree sets up a system that matches all documents automatically, and batches total sales for the company....
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...entered into the database before any computers in the categories are actually assembled. The computer components are purchased from wholesalers. One of Quandrax’s purchasing agents submits an order to the wholesaler that has listed a given component for sale. If the order is accepted, one of Quandrax’s inventory clerks receives the items. Multiple orders accepted by the same supplier may be consolidated into one purchase. Orders are accepted in their entirety or not at all. Nearly all of Quandrax’s orders are accepted. Sometimes the incorrect components are delivered to Quandrax and Quandrax has to return them to the appropriate supplier. Sometimes Quandrax returns components to suppliers for other reasons, such as the result of a change in planned production of a certain category of computers. Only about 10 percent of Quandrax’s purchased components are returned to suppliers, and any return would result from only one purchase. When payment is due for a purchase, one of Quandrax’s cashiers issues one check for payment in full for the items on that purchase. Sometimes if multiple purchases have been made from the same supplier within a short time, Quandrax pays for those purchases with just one check. One of Quandrax’s managers is required to not only authorize all purchase orders greater than $5,000 but also to sign all checks (including checks written for expenditures other than...
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...to use the design window to refine the reports and make them more readable. In the process, this assignment should help students learn to establish additional groupings and subtotals in reports, and to control the sort order for the report and entries within groupings. All these issues are covered in the Reports Chapter 11. Assignment Implement a Sales Journal in Tom's Trailer Sales database. The Sales Journal should look like the example below. The report has the default page footer that the report wizard creates. I have added a Chart of Accounts table to the database for you to use to use to get the account names for the report. You also will need to use the "Is Not Null" function as a selection criteria so that your report only picks up orders that have been delivered. Since this is a sales journal, only sales that can be recognized under GAAP's revenue recognition criteria should be included. For Tom's, that means only order that have been delivered to the customer. The report should look like the example at the end of the assignment. This is a complex report. I recommend that you follow the following steps in developing it: 1) Start by identifying which tables contain the data you will need for the report. 2) Then, use the report wizard to tell Access™ the fields you need from each table. Lay out your fields in the wizard from top to bottom in the same order they will appear in the report from left to right. 3) You will need two groupings...
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...purchasing b. accounting c. post-sales service d. human resource management 6. In the value chain concept, upgrading IT is considered what kind of activity? a. primary activity b. support activity c. service activity d. structured activity 9. A firm, its suppliers, and its customers collectively form which of the following? a. supply chain b. value chain c. ERP system d. AIS Chapter 2: 3. Which of the following would contain the total value of all inventory owned by an organization? a. source document b. general ledger c. cash budget 4. Which of the following is most likely to be a general ledger control account? a. accounts receivable b. petty cash c. prepaid rent d. retained Chapter 12: 8. Which of the following provides a means both to improve the efficiency of processing customer payments and also to enhance control over those payments? a. CRM b. lockboxes c. aging accounts receivable d. EDI 9. For good internal control, who should approve credit memos? a. credit manager b. sales manager c. billing manager d. controller 10. For good internal control over customer remittances, the mailroom clerk should separate the checks from the remittance advices and send the customer payments to which department? a. billing b. accounts receivable c. cashier d. sales Chapter 13: 1. Which of the following inventory control methods is most likely to be used for a product for which sales can be reliably forecast? a. JIT ...
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...|Strategic Planning (10-14%) | |Area VI |N/A |Operations Management (12-16%) | Controls over Business Processes • segregation of duties: for each transaction cycle, the functions of authorization, approval, execution (custody of assets) and recordkeeping should be segregated (manual- different individuals performing functions, technology-based- controlling access and passwords) Sales & Collections Business Process |Risk |Nature of Process |Examples Controls | |Inaccurate or incomplete sales data and lack |Sales orders inputted manually |• Password control over terminals to assure that sales are | |of security over sales order information | |authorized by sales...
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...Manufacturing is one of the leading global plastics manufacturer with a projected annual earnings of $46 million. Since the company’s inception in 1991, Riordan Manufacturing expanded and acquired a manufacturing plant in Pontiac, MI and another manufacturing plant in Albany, GA, its headquarters is house in San Jose, CA. They have also created a joint venture with the People’s Republic of China. This organization focuses on being Six Sigma, exceeding ISO 9000 standards, and continues to maintain an edge in Research & Development along with being the leader in industry trends. Finance and Accounting (F&A) Systems There are approximately 12 components to the F & A Systems: General Ledger, Accounts Payable, Accounts Receivable, Order Entry, Procurement, Sales and Purchasing History, Invoicing and Shipping, Payroll, Financial Reporting, EDI, Bar Code Reading and EDSS (Executive Decision Support System). Not all locations however have all the 12 components mentioned, EDI, Bar Code Reading and EDSS is only available in the San Jose office. In addition, the three entities are not compatible with each other as each three F & A systems has purchased software from three different vendors. The following table will outline a breakdown of current systems within the three United States offices. Vendor License Current Setup Language San Jose Windows Based Enterprise Resource Planning (ERP) Yes, no source code. Michigan Third Party Vendor (no longer in business) Yes, includes source code...
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...Fitter Snacker Clients for the SAP University Alliance Prepared by: Bret J. Wagner, Ph.D. Director, Integrated Supply Management Program Western Michigan University Kalamazoo, MI 49008 Phone: 269 387-5222 Fax: 269 387-5710 Cell: 269 271-9903 e-mail: bret.wagner@wmich.edu 1. Fitter Snacker Clients There are four versions of the Fitter Snacker Database client available for Student Exercises. In this document, the term Fitter Snacker Client will be used for the completely configured Fitter Snacker company. In addition to the Fitter Snacker Client, there are three other clients that are partially configured versions Fitter Snacker Client that can be used to teach SAP configuration. These clients are copies of the Fitter Snacker Client that were made during the development of the Fitter Snacker Client. The Fitter Snacker Client was created using the Dolphin Group configuration training document as a template. While there are significant differences between the Dolphin Group (and BPI) configuration classes, these are primarily in terms of the business context, although changes were made to make sure that each company in the Fitter Snacker Client was as independent as possible. The Fitter Snacker Client represents the fictitious Fitter Snacker Company...
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...Auditing Program Design Part II The purpose of this part of the audit process for Apollo Shoes is to design tests of controls, substantive tests of transactions, and analytical procedures for the sales, collection, payroll, personnel, acquisition, and payment cycles. These test and procedures are with intent to attest operating effectiveness of internal controls of Apollo Shoes on the basis of documentation provided. It is with the understanding that with the performing of test and procedures an opinion can be formed but management of Apollo shoes is responsible for the maintenance and assessment internal controls of over financial reporting. The design of test of controls of the sales and collection cycle follows. Sales and Collection Cycle Tests of Controls Sales Cycle: The review of the revenue and collection cycle manual of Apollo Shoes provides the improper record keeping of sales orders and that sales orders are not numbered which may affect the accuracy of pricing on invoices so steps. The test of controls for sale cycle to determine accuracy will be: 1. Examine sample 1004345 for Anglonesia Rehabilitation and Reprogramming Institute invoice to review unit prices of merchandise listed. 2. Compare unit prices on invoice for merchandise to these shoe types from inventory status report of 2007. 3. Verify unit prices on invoices are correct. Collection Cycle: A review of balance confirmation from customers provides a customer of Apollo Shoes Neutralizer’s account...
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...System Server Setup, OS Build, connections Setup and Test printers APO server setup; Optimizer Cache server setup Document server setup Printer Server Setup Coordinate activities between HR go live and other SAP go live related to hardware, dual clocks, etc. Engineering Drawing Package(s) Server setup Set batch jobs printers Hardware Purchased (PCs, Printers, Clocks, Labor Collection) CHECKPOINT: Hardware Is Installed, Time System Clocks Ready Mass Transport to Production (48 hrs) LOAD SETUP IN SAP PROD Open Client for Manual Numbers set Change customer number range to external Check various Number Ranges Add "plant" vendors Change vendor number range to external Manual - Number Range Batch Manual - Number Range Tranfer Requirement & Transfer Order Update table T185 as per SAP note 847810 Create Bin Numbers Set A/P Check Number Activate various conversion exit Change material number range to external APO-R/3 Basis connection settings Finance Setup Activate Material Ledger Activity Types Check FICO Number Ranges Co-PA activation Cost center hierarchy Cost element Groups Load Chart of Accounts Load Cost Centers Load Profit Centers Open MM Periods Primary and Secondary Cost Elements SET FI Periods APO & General Setup SETUP activate integration models create alert profiles Start Date Start Time Finish Time Finish Date Activity Production Go Live Checklist Dependency Status Responsible Group/ Person Comments create planning file entries Create planning ID's...
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...Operations Focus Ian Solace BSA/502 April 16, 2012 Christine Lin Kudler Fine Foods Operations Focus Kudler Fine Foods is a growing, upscale food retailer that currently uses exclusively manual processes to place orders for all of its products. In an effort to help streamline practices and increase profitability, it is recommended that Kudler move toward an Internet-based mode of ordering and fulfilling stock. This type of ordering system could save Kudler both time and money as well as reducing inaccuracies inherent in the manual ordering process. Current Ordering System Currently, there is no central purchasing department for the string of three stores. It is the responsibility of each of the three department managers within each store to determine requirements for the items in their departments and to place purchase orders directly with suppliers (Apollo Group, Inc., 2011). The department managers are required to fill out a standard, manual purchase order form for each order as well as receive and manually verify each shipment as it comes in. To place an order, these forms must be mailed, faxed, e-mailed, or even handed to suppliers (Apollo Group, Inc., 2011). These forms then become the primary tracking and financial documents for all merchandise orders (Apollo Group, Inc., 2011). This vast amount of paperwork must be maintained and stored in the accounting department to ensure vendors are paid. Another hurdle exists in that each department manager is independently...
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...(Apollo Group, Inc., 2013). An MRP will improve the current computer systems. The VP of Operations, Mark Neitzel, made a request for the system. The system includes Inventor Oversight, which is broken into two components: The Inventory PC and the Customer Shipping and Billing. The further breakdown of the system needs to track all incoming raw materials, the manufacturing of product followed by product inventory, the shipping of all products to clients, and the billing of clients. The system is broken down into workflows performed daily by each plant. Incoming raw materials workflow. 1. The Supply truck arrives at Receiving Dock with raw materials 2. The Dock Supervisor compares shipping documents against scheduled incoming orders 3. Once orders are concurred, the receiving team unloads truck and moves raw materials into the factory. 4. At the end of the day, the Dock Supervisor gives the log of all received materials to the Receiving Clerk. 5. The Receiving Clerk enters the information into the Inventory PC: the type of raw materials, vendor, and quantity. Manufacturing/Product inventory workflow. 1. The Manufacturing Staff completes inventory usage form indicating the type and quantity of raw materials used for manufacturing and assembly 2. The Inventory Clerk enters the...
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