Table of Contents
1Introduction
1.1Tenant
1.2Reference System
2Introduction to Business Process Management
2.1Overall Objectives
2.2Roles and Segregation of Duties
2.3Specific Information
2.4Master and Organizational Data
2.5Assignment Deliverables
3Business Scenario: Procurement (Procure-to-Pay)
3.1Objectives
3.2Overview of Business Tasks
3.3Login
3.4Create Sales Order
3.5Planning and Release Purchase Proposal
3.6Process Purchase Request and Order
3.7Approve Purchase Order
3.8Post Goods Receipt
3.9Check the General Ledger Entries
3.10Post Supplier Invoice
3.11Approve Supplier Invoice
3.12Select Items and Make Payment
3.13Additional Optional Tasks (on your own)
4Business Scenario: Sales (Order-to-Cash)
4.1Objectives
4.2Overview of Business Tasks
4.3Display Sales Order and confirm ATP check
4.4Release Customer Demand
4.5Post Goods Issue
4.6Release Outbound Delivery
4.7Check the General Ledger Entries
4.8Create Customer Invoice
4.9Check Customer Account Balance
4.10Receive Incoming Payment via Check
4.11Check Status in Sales Order
4.12Additional Optional Tasks (on your own)
1Introduction
Thisassignment will introduce you to business transactions recorded in a fully-integrated system called an ERP (enterprise resource planning) system. The system we have chosen to use is called SAP Business ByDesign or ByD. There are other similar systems available in the small, midsize enterprise (SME) marketplace, but very few combine cloud computing with a fully-integrated solution for the entire business enterprise.
1.1Tenant
“On-demand” customers want to focus on their business, not on running software. They expect no upfront investment in hardware, predictable costs, and immediate access paired with rapid deployment. The SAP Business ByDesign on-demand (SaaS) solution is initially setup by SAP shortly after the customer requests it. The system is fully managed by SAP with high availability and highest data security. For SAP Business ByDesign at least a 1 MBit/s internet connection is recommended. SAP Business ByDesign is a web-based application and therefore only needs a standard web browser.
The Tenant Provisioning service encompasses the following elements:
Tenant Set Up:SAP sets up the tenant ready for implementation and enables a smooth Go Live of SAP Business ByDesign in full operative mode.
TenantOperation:SAP manages the availability of the network-centered application and monitors all the components of SAP Business ByDesign to see if they are up and running. It also checks the traffic load on essential components in order to forecast delays and to invoke additional processes to handle the overload.
Storage Operation:SAP takes care of the administration of all storage-related tasks with regard to SAP Business ByDesign operations.
Application Management:For tenant operations, SAP takes care of monitoring and maintenance of the SAP Business ByDesign application. This includes versioning, security, backups and system health checks.
1.2Reference System
A reference system is a system that is preconfigured and loaded with realistic users and sample data. The users and sample data are based on the model company Almika Inc. By following the step-by-step instructions in this hand-out, you will assume the identity of Almika users and use the built-in sample data to carry out each of the business process tasks.
2Introduction to Business Process Management
Currently only one tenant is assigned to all the students in our AIS course, so it is important that you write down all your document numbers and pay attention to instructions so that you do not tamper with another student’s work inadvertently. We will be using the following tenant which is assigned to our class.
2.1Overall Objectives
- You will assume various roles and work within a medium-sized enterprise using an on-demand information system (SAP Business ByDesign)
- To understand and execute various business processes and their variants
- Perform different roles within the company and understand the responsibility and authorization for each role
- To perform business tasks necessary to achieve the business process outcomes
- Experience the end-to-end integration of SAP Business ByDesign
- Learn to trouble shoot process issues within an ERP system
- Describe the advantages of an on-demand solution for a small/medium sized enterprise
2.2Roles and Segregation of Duties
Normally, a company is run by people with different skill sets who perform different functions within the organization. Often these individuals are grouped according to their functions or roles within the company. For instance, there may be a sales department, an accounting department, production, and so on. A person’s function may be further refined within his functional area. For example, the sales department might have sales managers, sales reps, telemarketers, and so on. Typically an individual is allowed access to information, company assets, and given certain authority based on his or her role and denied access to other information, assets, and authorizations which he or she does not need to perform the tasks within the assigned role. This access limitation within the company is called segregation of duties (SOD). SOD along with other internal controls can help the company reduce the risk of fraud and errors.
Let’s look at an example: Almika Company makes and sells solar heating systems. The sales reps are allowed to negotiate prices with their customers. The sales rep enters the order for the heating system into Almika’s integrated ERP system, Business ByDesign. The warehouse delivers the heater to the customer and the engineer installs the system. The billing clerk bills for the heating system once it is installed at the customer’s site and the accounts receivable clerk collects the money from the customer. If the sales rep did all of these tasks, he could enter a sales order for one amount, bill the customer a higher amount and pocket the difference when payment came in. He could hide this fraud by adjusting the customer’s invoice to reflect the original sales order. Or, he could remove the heater from the warehouse and deliver it anywhere, even his own home. By segregating these duties or functions, Almika is reducing the likelihood that a single employee could commit such frauds.
Just telling an employee that he is not allowed to do certain tasks or access information is usually insufficient to prevent people from doing so. A well-designed integrated ERP system such as Business ByDesign allows users to access the functions they need to fulfill their given tasks and responsibilities within their roles, but prevents them from accessing areas within the system which are not needed to complete their job responsibilities. We will experience this system-enforced segregation of duties in this exercise. You will be asked to assume various roles as you complete each business transaction. Try to imagine yourself actually handing over a task to another employee within the company as you change roles.
Business roles within SAP Business ByDesign give each employee access to various work centers based upon their authorization. Therefore, as you progress through the exercises, you will have to logout and log back in as a different role to access different work centers. This reflects the real life situation where employees are given different roles, responsibilities and authorizations dictated by legal and functional objectives.
2.3Specific Information
The roles in the procure-to-pay business cycle transactions for this assignment are listed below:
SAP Business ByDesign User ID / Password / Role / Employee Last Name / Employee First Name / Student NameSALES02P / Welcome1 / Sales Representative / Jacob / Kate
SALES01P / Welcome1 / Sales Manager / Menson / Bob
SUPPLYPLANNER01P / Welcome1 / Production Manager / Stone / Richard
WAREHOUSE02P / Welcome1 / Warehouse Operator / Smith / Mark
WAREHOUSE01P / Welcome1 / Warehouse Manager / Loblanski / Luther
FINANCIAL01 / Welcome1 / Chief Financial Officer / Black / Edward
FINANCIAL02 / Welcome1 / Financial Accountant / Green / Iris
PURCHASE02 / Welcome1 / Purchaser / Warner / Bill
2.4Master and Organizational Data
Each SAP Business ByDesign reference system contains essential master and organizational data, which reflect the typical organizational structure of a mid-size company of a specific industry and allow you to run the industry-specific processes using the appropriate master data; for example, materials, vendors, or customers.
The graphic below gives you a high-level overview of the organizational structure of ALMIKA.
Master Data for Business ScenarioThe following table shows the specific master data you will use for this section.
Master/Org. Data Type / Name and Value / UsageCustomer / Silverstar Wholesale Corp.
(CP100110) / Sales
Product / Cylinder customized Trade
(P100710) / Procurement (driven by Sales Demand)
Supplier / AMS Inc. (S100200) / Procurement
Target Logistic Area / Warehouse (P1100-20) / Procurement (stock)
Freight-Forwarder / ABC Cargo Worldwide (S100800) / Sales - delivery
Ship-from-Location / Almika Heating Cleveland (P1100) / Sales - delivery
Logistics Area / Warehouse (P1100-20) / Internal warehouse
Approval LimitsThe following table shows some of the controls that have been put into the reference company to simulate a real business environment.
Approval Type / Limit / CurrencyShopping Cart Approval / $500 / USD
Purchase Order Approval / 3,500 / USD
Supplier Invoice Approval / 5,000 / USD
Incoming Payment Approval / none / USD
Outgoing Payment Approval / 10,000 / USD
Payment Deduction Approval (Incoming) / 50 / USD
Expense and Reimbursement Approval / 500 / USD
2.5Assignment Deliverables
Enter your student ID# here. Since all of us are logging in with the same login information, your student ID will help us follow your work within the system.
Complete the assignment for both the procure-to-pay (section 3) and the sales-to-cash (section 4) business scenarios in our tenant in SAP Business ByDesign. As you complete these transactions, you will be asked certain information and you could be asked to create a screen print. Write the answers to the questions and paste the screen prints into the document called “ByD Assignment Submission”. Submit your completed “ByD Assignment Submission” document in BB/WebCT by the due date for grading.
A note about grading: failure to follow assignment submission instructions, using another student’s online document, or failure to complete the assignment will negatively affect your grade. Making mistakes in SAP Business ByDesign may not affect your grade if you find and fix your mistake.
Work through any problems you might encounter by using the system troubleshooting tools such as the contextual help and learning centers. Learn to figure out how to fix things on your own as it is infrequent that an employer will have someone sitting around waiting to answer your questions. The best employees are those who are willing and able to problem solve.
3Business Scenario: Procurement (Procure-to-Pay)
You will execute the business scenario for Procure-to-Pay. The demand for procurement will be generated from a sales order.You will start by creating a Sales Order for Material P100710,Cylindercustomized Trade. This material is purchased from a vendor and resold to customers through two sales organizations – P1110 Sales Heating and 2100 BR Columbus. The distribution channel is Direct Sales. There is no in-house production for this material. The purpose of creating the Sales Order is to generate demand that will trigger the procure-to-pay business process. At the end of this procurement process you will end up with inventory of the material P100710,“Cylinder customized Trade”.
3.1Objectives
- Perform different roles within the company and understand the responsibility and authorization for each role within the business process.
- Experience the end-to-end integration of SAP Business ByDesign
- Generate demand for a product that Almika sells to its customers by creating a sales order
- Use supply planning to generate a purchase proposal for the shortfall of inventory to satisfy the demand
- Explore and assign a source of supply for a purchase proposal
- Understand why a purchase approval is important in the procurement process
- Receive goods into inventory
- Learn how to process supplier invoices including appropriate approvals for payment
3.2Overview of Business Tasks
Here is an overview of business tasks and the roles that will perform those tasks.
3.3Login
To start the exercises, login to this tenant
- If at any point during these exercises, your web browser warns you that the Cache limit has been reached, click yes to increase the limit and continue.
- IMPORTANT NOTE: Since we are “sharing” login information, if you do make a mistake logging in and lock a user for any reason, notify your instructor IMMEDIATELY so that the login is not blocked for other students.
3.4Create Sales Order
Logon and Work Center Information
Logon ID / Role / SALES02P / Sales Representative / Kate JacobWork Center / View / Sales Orders / Common Tasks
Procedure
Field Name / Data to Enter / Activity / Button / CommentCommon Tasks list
Click New Sales Order.
(Account) Name / CP100110 (Silverstar Wholesale Corp.) / Press Enter.
External Reference / Your student ID#
Requested Date / < current date plus 7 days >
Items table
Product ID / P100710 (Cylinder customized Trade)
Quantity / 100 ea / You may use the calculator icon to enter this number.
Click Submit, and choose Send Order Confirmation to Account.
Record the Sales Order Number (at bottom of screen)
Log off, Click Yes on the message window. Restart Application
3.5Planning and Release Purchase Proposal
Logon and Work Center Information
Logon ID / Role / SUPPLYPLANNER01P / Supply Planner / Richard StoneWork Center / View / Supply Planning / Products
Procedure
Field Name / Data to Enter / Activity / Button / CommentProducts view
Show list / All Products by Selection / Click Go.
and Find / P100710
ProductID / P100710 (Cylinder customized Trade) / Select the line item. (Select the line with an Exception) Click the left most column in a row to select a row. (Clicking on the Product ID or Description takes you to its master data.)
Click Open.
Product Planning Details screen Supply and Demand List
Note the Available Stock
Select your Sales Order Numberrow by scrolling down and looking at the Document ID column (make sure that the Quantityis what you entered in the previous task. Also note theProjected Stock)
Click New Planning Proposal. You may need to scroll to the top of the frame to view this option.A new row is created.(A warning may occur stating enter a quantity greater than zero. This prevents you from creating a zero order.) In the new row, enter 100, the quantity of your Sales Order.
Enter (make note of your purchase proposal) document ID number below.
Purchase Proposal ID (document ID)
Supply and Demand List
You’ll see that a purchase proposal was generated with the quantity you have proposed (row may be moved up)
Change the Date on the proposal to one week from today.
Enter
Product Planning Details screen
Click Save.
Select the line with the purchase proposal created above.
Click Release. Purchase Proposal converts to a Purchase Request
Click Save.
Make a note of the Purchase Request ID(Document ID)
If the Document ID does not appear, click Save again.
Click Save and Close.
3.6Process Purchase Request and Order
Logon and Work Center Information
Logon ID / Role / PURCHASE02 / Purchaser / Bill WarnerWork Center / View / Purchase Requests and Orders / Purchase Requests
Procedure
Field Name / Data to Enter / Activity / Button / CommentPurchase Requests view
Show list / All Purchase Requests
Select the line item for your purchase request ID from the previous step. Make sure you select your own Purchase Request ID.
Click Assign Source of Supply
Product ID / P100710
Product Description / Cylinder customized Trade / Set by the system.
Open Quantity / Set by the system (should be same as your Purchase Request and Sales Order)
Select your Purchase Request Row in the Purchase Requests table
AvailableSources of SupplyTable
Supplier Name / S100200 (AMS Inc.) / Supplier IDs appear in the Available Source of Supply table list (scroll down). Select the Supplier and click Assign to Selected Purchase Request
Supplier ID appears in your Purchase Request Row. (If the list of suppliers do not show in the Available Source of Suppy table, you can manually enter AMS in the purchase request row.)
Save and Close
Purchase Requests view
Show list / Assigned Purchase Requests / Click Refresh. Your Purchase Request now has AMS Inc. as Supplier.
Select the row ofyour purchase request, for which the purchase order is to be created, and click Edit.
Notes / Your student ID# / (you may have to click view all to see the notes tab), insert a row and choose internal comment. Type your student ID. Click Save. Click Close. Select the row of your purchase request, for which the purchase order is to be created, and click Quick Order.
Write down the Purchase Order ID that is created automatically
(see bottom of the screen). Click on Close.
In the Purchase Requests and Orders work center, you can review a purchase order and enter additional information about the item to be procured.
Purchase Orders view
Show list / Purchase Orders Changed Recently / Select your purchase order created above.
Click Edit.
Purchase Orders Screen, Items tab
Product ID / P100710
Product Description / Cylinder customized Trade
Quantity / 100 ---ea
Purchase Orders Screen, Items tab, Basic Data subtab (lower part of screen)
Gross Price / 85 USD / Note the following options
Purchase Order Acknowledgement Expected / No
Goods and Services Receipt Expected / Yes
Invoice Expected / Yes
Evaluated Receipt Settlements / No
Display the document flow
Click Save andClose. (Note if you did not make any changes, you will not need to save.)
If you refresh your purchase order screen, your purchase order will now show ready.
3.7Approve Purchase Order