Integrated Systems-Paraphrase

Pg. 5 Question Four

Integrated Enterprise Systems

IT402

Student Information:

Name:

CRN: 22143 ID:

Mark: ###

Directions:

· The Assignment must be submitted on Blackboard (WORD format only) via the allocated folder.

· Email submission will not be accepted.

· You are advised to make your work clear and well-presented, marks may be reduced for poor presentation. This includes filling the information on the cover page.

· You MUST show all your work, and text must not be converted into an image, except specified otherwise by the question.

· Late submission will result in ZERO marks being awarded.

· The work should be your own, copying from students or other resources will result in ZERO marks.

· Use Times New Roman font for all the answers.

Question One

1 Marks

Learning Outcome(s):

LO4: Identify key issues related to project management

LO5: Describe key issues related to Supply Chain Management and Customer Relationship Management

HappyHome is a factory specialized in sales and manufacturing of several ranges of home appliances. Inventory of microwave ovens is low (<=50) in Jeddah plant. Therefore it is necessary to procure more microwave ovens.

HappyHome is purchasing 200 microwave ovens from Xcite electronics with a unit price= 99 SAR.

Record financial impacts of this purchase transaction using the relevant T-accounts.

N.B. include in one figure impacts for the steps of goods receipt, invoice verification and payment processing.

200 Units * 99 SAR = 19,800 SAR

HappyHome Bank Account

Debit	Credit
	19,800 SAR

HappyHome purchase account

Debit	Credit
19,800 SAR

Question Two

1 Mark

Learning Outcome(s):

LO4: Identify key issues related to project management

LO5: Describe key issues related to Supply Chain Management and Customer Relationship Management

HappyHome is having a sale transaction selling washing machines and freezers to a wholesale distributor, named Homy. Both of these products are manufactured at HappyHome . Details of this transaction are depicted in this table:

	Quantity	Unit selling price	Unit cost price
washing machine	10	SAR980	SAR450
freezer	15	SAR680	SAR350

Record financial impacts of this sale transaction for HappyHome.

N.B. Show financial impacts for all steps of the transaction in only one figure.

Cost of production 10 units of washing Machine= 10 * 450 = 4,500 SAR

Cost of production 15 units of freezer= 15 * 350 = 5,250 SAR

Cost of selling 10 units of washing machine= 10 * 980 = 9,800 SAR

Cost of selling 15 units of freezer= 15 * 680 = 10,200 SAR

Total cost of production= 4500 + 5250 = 9,750 SAR

Total cost of selling= 9800 + 10200 = 20,000 SAR

HappyHome trading goods account

Debit	Credit
	9,750 SAR

HappyHome Revenue account

Debit	Credit
	10,250 SAR

HappyHome bank account

Debit	Credit
20,000 SAR

Question Three

1 Mark

Learning Outcome(s):

LO4: Identify key issues related to project management

LO5: Describe key issues related to Supply Chain Management and Customer Relationship Management

Show how fulfillment process is integrated with other business processes.

N.B. It is needed that you briefly describe how integration happens with each business process.

The fulfillment process is highly integrated with the upcoming seven processes that they are: Procurement, Production, Financial accounting, Management accounting, Material planning, inventory and warehouse management, project systems.

The fulfillment processes involves both payments and revenues, based on that a strong relationship exists between fulfillment and financial accounting. Due to this, shipment, billing, and payment steps have an impact on the general ledger. Fulfillment utilizes sales revenue data that influence the profitability analysis process in management accounting.

During sales order processing, when the company conducts availability checks it employs data from inventory management, production, and purchasing that are the sources of the materials for shipment. Sales data used by materials planning to schedule the procurement and manufacture or production of materials. Goods movement as a fulfillment step linked to inventory management. Initiating pick/pack processes done with warehouse management during shipment. Fulfillment processes related to project systems. Since that, enterprises use projects to create complex products for customers, such as airplanes. Customer orders processed using the fulfillment process. However, instead of pick/pack and send shipments, the customer requirements transferred to the project management process, and then the project systems influence deliveries and billing. We must denote that the execution of these processes are in different companies using different ERP systems.

Question Four

1 Mark

Learning Outcome(s):

LO4: Identify key issues related to project management

LO5: Describe key issues related to Supply Chain Management and Customer Relationship Management

Draw a simplistic mind map for organizational elements associated to the fulfillment business process.

N.B. leaves of your mind map have to correspond to “your” concise and precise definitions of the organizational elements from the fulfillment process view .

We have been covered client, company code, plant and storage location in the previous assignment. A little different in the context of the fulfillment process about the plant is that a delivering plant is a facility from which the company delivers goods and services to the customers. Sales organizations are combined divisions that form the company code; each one has a responsibility in sale and distribute goods and services for a specific geographical region. The distribution channel (DC) is the act by which a company delivers its goods and services to its customers. The Division is the unit within the company that consolidate materials and services with similar features.

A sales area is a unique combination of the three-pre elements that they are sales organization, distribution channel, and division. A shipping point is a physical location within the plant that ship outbound deliveries. A credit control area is the element that determines customers’ creditworthiness, establishes credit limits, manages and monitors the actual extension of credit to customers.