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Key Risks
I. Order Process
1. Segregation of duties
2. Mandatory fields on the order form such as:
Vendor’s PO number to identify duplicate orders
Terms of payment
Accounting information
3. Type of Order and Controls such as:
Credits and returns – blocking of the return until approved in the IMG.
4. Pricing
Can anyone override the price computed?
Can anyone give an unlimited discount?
5. Billing
Any billing blocks?
Any shipped but not yet billed?
Partial shipment report
6. Credit Master
Customer
Credit rating
Credit limits
Segregation of duties
Credit check
Sales Order check
Pick check
Ship check
7. Who can execute the FB01 transaction?
No connection to the sales order process
8. Delivery Returns
Reason for the return
II. Procurement
1. Purchase Request
Segregation of duties
Release procedure
2. Purchase Order
Segregation of duties
Release procedure
3. Invoice document
Segregation of duties
4. Receipt document
Segregation of duties
5. Release for payment
Release procedure
Tolerances for
Price
Quantity
Volume
III. Inventory
1. Inventory Movements
2. Cycle counting
3. Inventory adjustments
IV. GR/IR Clearing Accounts
The goods receipt/invoice receipt reconciliation account is an intermediate account
between the inventory account and the vendor account, in which the goods receiving can
first be recorded, or the invoice receiving for an order can first be recorded. In the first
case, the posting offsets the invoice, and in the second, the posting of the goods receipt
offsets the GR/IR reconciliation account.
When posting the goods receipt, the system performs the following account movements:
The value of the delivery is credited to the inventory account (net order price * quantity
of goods received), and the GR/IR reconciliation account is debited by that amount.
When the corresponding goods receipt or invoice receipt is posted, the balance is then
offset in the GR/IR reconciliation account account and posted to the vendor account.
account.
If a later invoice or goods receiving remains outstanding, the balance is not offset in the
GR/IR reconciliation account; that is, the system waits for an additional goods receipt or
an additional invoice that offsets that balance. If this remains outstanding, the GR/IR
reconciliation account has to be balanced manually. A corresponding function is included
in invoice verification. The GR/IR reconciliation account must be maintained at regular
intervals.
By posting the receipt of goods using a GR/IR reconciliation account, the recalculation of
the average escalation price is handled at the level of the material master data set and the
order obligation is adjusted, among other things. The detailed information on the GR/IR
reconciliation account is needed for the balance sheet date, in order to incorporate it as
goods in transit or invoice in transit, and to assign it to the appropriate balance sheet
items.
1. Tables
T169 Transaction control, Invoice verification/ valuation
T169W Posting strings (values) for SAPMM08R
2. Reports
RFWERE00 Analysis of goods receipt/invoice receipt
reconciliation accounts and statement of profits tax
RM07MSAL Goods receipt/invoice receipt trial balance
SAPF123W Automatic balancing of goods receipt/invoice receipt
reconciliation accounts
RMCBBW00 Overall analysis of inventory values
RMCBBW10 Hit list of inventory values
3. Handling price differences
Since the material was charged according to the order price when the goods were
received, if there is a difference in the invoice price, the total must be reduced (lower
invoice) or increased (higher invoice price) during invoice verification.
The following must be noted in terms of posting:
For materials with an average escalation price, the inventory account can only be charged
or credited in accordance with the actual inventory. If the material inventory is smaller
than the invoice quantity, the inventory account can only be credited or debited with the
invoice difference for the actual inventory (inventory * price difference); the remaining
amount is posted to a price difference account.
For materials with a standard price, this posting is handled in the expenditure from price
difference account.
4. Tables
T169 Transaction control, invoice verification/ valuation
T169A Posting string: invoice verification
T169B Notifiable order appendix types
T169D Invoice verification: verification of order amounts
T169E Tolerance threshold key
T169F Transaction-dependent recommendation values: invoice
verification
T169G Tolerance thresholds: invoice verification
T169K Recommendation values: account management
T169O Accounting block: fields to be excluded in invoice
verification
T169P Invoice verification parameters
T169S Tolerance threshold key
T169V Recommendation values: invoice verification
T169W Posting strings (values) for SAPMM08R
T169X Procedure texts for invoice verification
5. Handling differences in quantity
When there are differences in quantity between goods receipt and invoice receipt for an
order, a balance appears in the goods receipt/invoice receipt reconciliation account:
If the invoiced quantity is greater than the goods receipt quantity, additional receipts of
goods are expected for that order, with which the balance will be offset.
If the quantity of goods received is greater than the invoice quantity, additional invoices
are expected for that order, with which the balance will be offset.
If there are not further goods or invoices received for the order, the goods receipt/invoice
receipt balance must be offset, e.g. by returning excess goods received to the vendor,
discounting the invoice, or by directly offsetting the goods receipt/invoice receipt
reconciliation account. As a general rule, the goods receipt/invoice receipt reconciliation
account is balanced
periodically or at the end of the fiscal year. The offseting posting of the goods
receipt/invoice receipt reconciliation account corresponds to the posting made when the
invoice was recorded for the order.
.Materials with an average escalation price:
An offsetting entry is made in the inventory account, unless there is
no inventory coverage. If the material inventory is smaller than the
amount to be offset, only the inventory actually on hand is
proportionally credited or debited; the residual amount is posted to
an expense or earnings account.
Materials with a standard price
The offsetting posting is handled in an expense or earnings account.
.Allocated orders
Counter-booking is handled in the cost or fixed-asset account in which
the invoice was posted.
Goods receipt/invoice receipt trial balance
The report compares the quantity and value of goods received for an order to the quantity
and value of the invoice received for that order if the balance of the quantities is not equal
to zero. The report is used to provide an overview of the goods and invoices received
when purchasing vouchers are not counterbalanced.
Depending on the settings for the scope of the list, you will obtain the following lists
(Environment -> Balance statement -> Goods Receipt/Invoice receivpt trial balance;
RM07NSAL):
Basic list
Summary page
The selected purchasing vouchers are provided by supplier in the basic
list. The following details are presented for each purchasing voucher
item: item number, order quantity, order quantity units, net
price, price unit, order price quantity unit, material, quantity
received, invoice amount, goods received value, face amount of invoice
in the domestic currency, and, if available, the quantities received,
the invoice quantity, the value of goods received and the face value
of invoice in domestic currency for additional supply costs.
You can perform various functions starting with the basic list:
.Display order history,
.Display summary page.
On the summary page, the total value of goods received, the face
value of the invoice in the local currency and, if available, the
additional supply costs for all purchase vouchers selected can be
indicated by supplier, by purchasing group, and per purchasing
organization.
As additional information with respect to the basic list, this summary page displays the
difference in value of goods received and the face value of the invoice in the local
currency, and the difference in additional supply costs.
1.0 Introduction
2.0 Procurement Audit
2.1 List all of the organizational entities for Procurement
2.1.1 Use
2.1.1.1 Transaction SPRO – IMG
2.1.1.2 Transaction SECR – AIS Business Audit –
Organization
2.1.1.3 Transaction SE17
Determine the production Client
List table T000
Determine the production Companies
List table T001
Obtain a listing of all group companies
List table T042G
Obtain a listing of all business areas
List table TGSB and TGSBT
Obtain a listing of all credit control areas
List table T014 and T014T
Obtain a list of all charts of accounts
List table T004 and T004T
Obtain a listing of all plants
List tables T001W and TVKWZ
Obtain a listing of storage locations
List table T001L
Obtain a listing of all purchasing organizations
List table T024W
Obtain a listing of all purchasing groups
List table T024
Obtain a listing of all sales organizations
List table TVKO and TVKOT
Obtain a listing of distribution channels
List table TVTW, TVTWT, and TVKOV
Obtain a listing of all divisions
List tables TSPA, TSPAT, and TVKOS
Obtain a listing of sales areas
List table TVTA
Obtain a listing of sales offices
List tables TVBUR, TVKBT, and TVKBZ
Obtain a listing of sales groups
List tables TVKGR, TVBVK, and TVGRT
Obtain a listing of activity codes
List tables TACT and TACTZ
Obtain a listing of transaction codes
List table TSTCT
Obtain a listing of tables
List table DD02T
Obtain a listing of all reports using SA38
2.2 Obtain a copy of the Business Process Diagrams for the business audit
areas
2.3 Obtain the documentation on all configuration changes
2.4 Determine the amount of system modification
2.4.1 List the following:
2.4.1.1 SE17 on TSTCT selecting Z* transactions
2.4.1.2 SA38 and selecting Y* and Z* programs
2.5 Is system limited to people who need access?
2.5.1 Obtain a copy of the Matrix analysis
2.5.2 Review the Matrix Activity Groups for Procurement
2.5.3 Review the key transactions to job functions
2.5.4 Map the Matrix to the Activity Group in the system
2.5.4.1 Transaction SUIM
2.6
Vendor Selection
1. How do you ensure a supplier is evaluated on the following factors before that
supplier is utilized?
Price competitiveness
Reputation
Quality of products/services
Delivery abilities
Overall capabilities
2. Who has the transaction authority to create and/or change Vendor Master
records.
Purchasing
1. The system should be configured to ensure that purchase orders cannot be
created without an existing purchase requisition.
2. Evaluate the key fields on purchase orders to ensure that they are defined as
mandatory items. In the IMG – Material Management > Purchasing >
Purchase Order Processing > Define Screen Layouts at Document Level.
3. Determine that the release procedures for purchase requisition are adequate.
In the IMG – Materials Management > Purchasing > Purchase Requisition >
Release Procedures
4. Determine that the three way release strategy is in place where a purchase
order, invoice, and delivery document are matched. In the IMG – Materials
Management > Purchasing > Purchase Order Processing > Define Release
Procedures.
5. Review the tolerance level settings for price and quantity. Determine if these
tolerance levels are appropriate. In the IMG – Materials Management >
Purchasing > Purchasing Order Processing > Set Tolerance Limits for Price
Variance
6. Other key configuration settings in the IMG – Materials Management >
Purchasing > Purchasing Order Processing:
Define Number Ranges
Define Document Types
7. How do you ensure that purchase order overrides are authorized?
Receiving
1. How do you know that goods received meet your Company’s quality standards?
2. How would you know if a change or deletion to a receiving report occurred?
3. How are mismatched or long outstanding, open purchase orders and receiving
reports investigated and resolved?
Supplier Invoices and Disbursements
1. Can the individual(s) who prepares and processes disbursements:
Approve disbursements?
Receive and process cash receipts?
Access blank checks and facsimile plates?
Process wire transfers?
Have petty cash custodial duties?
Prepare and approve bank reconciliations?
Record transactions in the general ledger or accounts payable subsidiary
ledger?
Accounts Payable
1. How do you know that duplicate payments have not been made on the same
supplier invoice?
2. How do you know that payments against blanket purchase orders used for
recurring purchase transactions are authorized?
Blank Checks
1. How do you prevent someone from taking a blank check and completing it for
their own purposes?
Purchase Returns and Adjustments to Accounts Payable Subsidiary
1. How do you ensure that every purchase return, allowance and other adjustment
is authorized?
2. How do you know that every debit memo, allowance and other adjustment was
accurately and correctly recorded?
4. How do you know that the amount of the debit memo reflects the original
purchase price?
Test 04 - Open Receiving Report Test
________________________________________________________________________
_____
Purpose: Review the Company's open receiving reports currently existing in the
systems. Determine that no long outstanding open receiving exist in the
systems.
Source: SAP System
Menu : Logistics --> Materials Management --> Purchasing -->
Purchase Order --> List Display --> By Vendor
Factors: 1. Purchasing Organization xxxx
2. Scope of List ALL
3. Selection Parameters Open_GR
4. Purchasing Group xxx
5. Plant xxxx
6. Delivery Date (to) dd/mm/yyyy
7. Document Date (to)dd/mm/yyyy
Findings:
Test 05 - Open Purchase Order Test
________________________________________________________________________
_____
Purpose: Review the Company's open PO reports currently existing in the systems.
Determine that no long outstanding open POs exist in the systems.
Source: SAP System
Menu Pass: Logistics --> Materials Management --> Purchasing -->
Purchase Order --> List Display --> By Vendor
Factors: 1. Purchasing Organization xxxx
2. Scope of List PO
3. Selection Parameters INV_OPEN
4. Purchasing Group xxx
5. Plant xxxx
6. Delivery Date (to) mm/dd/yyyy
Test 07 - Duplicate Invoice Test
________________________________________________________________________
_____
Purpose: To ensure that no duplicate invoices were paid, and periodic review was
perform by the Company's management.
Scope: Review from mm/dd/yyyy to mm/dd/yyyy SAP system generated
duplicate invoice report.
Source: SAP generated system report
Menu Path: Accounting --> Financial accounting --> Accounts payable -->
Periodic processing --> Payments --> Edit --> Payment --> Payment
list and Exception list.
Transaction Code: SA38
Program: RFBNUM10
Short-cut by using the program name:
System --> Services --> Reporting
Under Program Name: RFBNUM10
Click on the Green Check Mark
Company Code: xxxx
Posting period: mm/dd/yyyy to mm/dd/yyyy
Mark on: Same Vendor
Same Invoice
Execute (to get the report)
Test 08 - Access Test for Open P.O.
________________________________________________________________________
_____
Purpose: To ensure that individuals who have access to purchase orders are current
employees and have the required access to perform their current job
responsibilities.
Source: SAP system
Scope: Obtained queries from the SAP system of all employees with access to
critical transactions.
SAP Menu Path:
SUIM
1) Object Class:
MM Purchasing
Object: M_EINK_FRG
Release Code and Group in Purchasing
Possible Authorization:
Definition:
This is critical because anyone who is given * and * access
to this can release purchase requisitions.
Critical Fields:
-Release Group
-Release Code
2) Object Class:
MM Purchasing
Object: M_BANF_FRG
Release code in purchase requisition
Definition:
With this authorization object, it is possible to restrict the
release of purchasing documents via the release. This
authorization object comprises the field release code only.
The various authorizations for this object thus stipulate the
release codes with which requisitions may be released.
This is critical because these codes tell you if the system
automatically routes purchase requisitions to the next
level for approval. It also specifies the person to whom
the purchase requisition is routed. The text on the right
side of the screen will list the hierarchy for each level.
Please refer to company model documentation for a
description of each code.
Critical Fields:
-Release Code
Non-Critical Objects: Updating backorders:
Object Class: MM: Materials Requirement Planning
Object: M_MIPA_ORG
Backlog Processing
Definition:
Authorization for updating backorders.
Critical Fields:
You can specify values for the following fields:
Activity:
02 Update.
Procedures:
1. Check all authorizations & profiles linked to the critical authorization objects.
2. Review the individual's established user role to ensure access is required to
complete job responsibilities based on job title and department.
Test 09 - Access Test for Goods Receipts
________________________________________________________________________
_____
Purpose: To ensure that individuals who have access to goods receipt transactions
are current employees and have the required access to perform their
current job responsibilities.
Source: SAP system
Scope: Obtained queries from the SAP system of all employees with access to
critical transactions.
SAP Menu Path:
SUIM
1) Object Class:
MM: Inventory Management and Physical Inventory
Object: M_MSEG_BWA
Goods Movement: movement type
Definition:
With this authorization object, it is possible to restrict the
maintenance of goods movements via the movement type.
Critical Fields:
You can specify values for the following fields:
-Activity:
01 Create
2) Object Class:
MM: Inventory Management and Physical Inventory
Object: M_MSEG_BWA
Goods Receipt against purchase order: Movement Type
Definition:
With this authorization object, it is possible to restrict the
maintenance of goods movements with reference to PO's
via the movement type.
Critical Fields:
You can specify values for the following fields:
-Activity:
01 Create
02 Change
-Movement Type
3) Object Class:
MM: Inventory Management and Physical Inventory
Object: M_MSEG_WWE
Goods Receipt against purchase order: Plant
Definition:
With this authorization object, it is possible to restrict the
maintenance of goods movements with reference to POs
via the plant.
Critical Fields:
You can specify values for the following fields:
-Activity:
01 Create
02 Change
-Movement Type
4) Object Class:
MM Purchasing
Object:
Purchasing Organization in Purchase Order
Procedures:
1. Check all authorizations & profiles linked to the critical authorization objects.
2. Review the individual's established user role to ensure access is required to complete
job responsibilities based on job title and department.
Test 10 - Access Test for Goods Returns
________________________________________________________________________
_____
Purpose: To ensure that individuals who have ability to return goods are current
employees and have the required access to perform their current job
responsibilities.
Source: SAP system
Scope: Obtained queries from the SAP system of all employees with access to
critical transactions.
Menu Pass:
SUIM
Object Class:
MM: Inventory Management and Physical Inventory
Object: M_MSEG_BWA
Goods Movement: movement type
Definition:
With this authorization object, it is possible to restrict the maintenance of
goods movements via the movement type.
Critical Fields:
You can specify values for the following fields:
-Activity:
01 Create
02 Change
-Movement Type
Procedures:
1. Review the individual's established user role to ensure access was required to
complete job
responsibilities based on job title and department
Test 10 - Access Test for Goods Returns
________________________________________________________________________
_____
Purpose: To ensure that individuals who have ability to return goods are current
employees and have the required access to perform their current job
responsibilities.
Source: SAP system
Scope: Obtained queries from the SAP system of all employees with access to
critical transactions.
Menu Pass:
SUIM
Object Class:
MM: Inventory Management and Physical Inventory
Object: M_MSEG_BWA
Goods Movement: movement type
Definition:
With this authorization object, it is possible to restrict the maintenance of
goods movements via the movement type.
Critical Fields:
You can specify values for the following fields:
-Activity:
01 Create
02 Change
-Movement Type
Procedures:
1. Review the individual's established user role to ensure access was required to
complete job
responsibilities based on job title and department
Test 11 - Access Test for Releasing Blocked Inv.
________________________________________________________________________
_____
Purpose: To ensure that individuals who have access to release blocked invoices are
current employees and have the required access to perform their current
job responsibilities.
Source: SAP system
Scope: Obtained queries from the SAP system of all employees with access to
critical transactions.
SAP Menu Path:
SUIM
1) Object Class:
MM: Invoice Verification
Object: M_RECH_SPGAL
Invoices: Blocking Reasons
Definition:
With this authorization object, you can limit who can process blocked
invoices via the individual blocking reason. This authorization is checked
against the function 'Release blocked invoices'
Critical Fields:
You can specify values for the following fields:
-Activity:
02 Release/cancel invoice block
-Blocking Reason
ADD IN blocking reason info
2) Object Class:
MM: Invoice Verification
Object: M_RECH_BUK
Invoices: Company Code
Possible Authorization:
Definition:
Authorization to release blocked invoices in certain company
codes. This authorization is checked against the function Release
blocked invoices
Critical Fields:
You can specify values for the following fields:
-Activity:
02 Release/cancel invoice block
-Company Code
Procedures:
1. Check all authorizations & profiles linked to the critical authorization objects.
2. Review the individual's established user role to ensure access is required to complete
job responsibilities based on job title and department.
Test 12 - Access Test for Invoice Process
________________________________________________________________________
_____
Purpose: To ensure that individuals who have access to process invoices are current
employees and have the required access to perform their current job
responsibilities.
Source: SAP system
Scope: Obtained queries from the SAP system of all employees with access to
critical transactions.
SAP Menu Path:
SUIM
1) Object Class:
MM: Invoice Verification
Object: M_RECH_SPGAL
Invoices: Blocking Reasons
Definition:
With this authorization object, you can limit who can process blocked
invoices via the individual blocking reason. This authorization is checked
against the function 'Release blocked invoices'
Critical Fields:
You can specify values for the following fields:
-Activity:
02 Release/cancel invoice block
-Blocking Reason
ADD IN blocking reason info
2) Object Class:
MM: Invoice Verification
Object: M_RECH_BUK
Invoices: Company Code
Possible Authorization:
Definition:
Authorization to release blocked invoices in certain company
codes. This authorization is checked against the function Release
blocked invoices
Critical Fields:
You can specify values for the following fields:
-Activity:
02 Release/cancel invoice block
-Company Code
Procedures:
1. Check all authorizations & profiles linked to the critical authorization objects.
2. Review the individual's established user role to ensure access is required to complete
job responsibilities based on job title and department.
Test 14 - Access Test for Vendor Master File
________________________________________________________________________
_____
Purpose: To ensure that individuals who have access to vendor master file are
current employees and have the required access to perform their current
job responsibilities.
Source: SAP system
Scope: Obtained queries from the SAP system of all employees with access to
critical transactions.
SAP Menu Path:
SUIM
1. Object Class: MM: Purchasing
Object: V_KONH_EKO
Purchasing Organization in Master Condition
Possible Authorization:
Definition:
With this authorization object, it is possible to restrict the
maintenance of master conditions. Master conditions are the basis
on which the system computes the effective price.
Critical Fields:
Activities:
01 Create
02 Change
2. Object Class: MM: Purchasing
Object: M_LFM1_EKO
Purchasing Organization in Vendor Master Record
Definition:
With this authorization object, it is possible to restrict the
maintenance of vendors via the purchasing organization.
Critical Fields:
Activity
01 Create
3. Object Class: Financial Accounting
Object: F_KREDITOREN
Accounting Document: Account Authorization for
Vendors
Possible Authorization:
Definition:
Using this authorization object, you determine for which vendor
accounts line items can be posted and processed.
Critical Fields:
Activity
01 Create
4. Object Class: Financial Accounting
Object:
Vendor: Account Authorization
Definition:
Using this authorization object, you determine which vendor
master records can be edited.
Critical Fields:
Activity
01 Create
5. Object Class: Financial Accounting
Object: F_LFA1_APP
Vendor: Application Authorization
Possible Authorization:
Definition:
Using this authorization object, you determine which activities are
allowed for vendor master records. You can define this
authorization separately for FI and Purchasing applications. If an
employee is allowed to edit the master data for both applications,
then he or she needs the authorization for both applications.
Critical Fields:
Activity
01 Create
6. Object Class: Financial Accounting
Object: F_LFA1_AEN
Vendor: Change Authorization for Certain Fields
Possible Authorization:
Definition:
Using this authorization object, you can define a change
authorization for selected vendor master file records. Using this
object, you can also protect the fields from being blocked and the
delete flag from being set. Only an employee who has been
allocated this authorization can change these fields.
Critical Fields:
Activity
01 Create
7. Object Class: Financial Accounting
Object: F_LFA1_BUK
Vendor: Authorization for Company Codes
Possible Authorization:
Definition:
Using this authorization object, you determine which activities are
allowed in the company code-dependent area of the vendor master
record.
Critical Fields:
Activity
01 Create
Procedures:
1. Check all authorizations & profiles linked to the critical authorization objects.
2. Review the individual's established user role to ensure access is required to complete
job responsibilities based on job title and department.
Test 15 - Access Test for Payment Process
________________________________________________________________________
_____
Purpose: To ensure that individuals who have access to payment process are current
employees and have the required access to perform their current job
responsibilities.
Source: SAP system
Scope: Obtained queries from the SAP system of all employees with access to
critical transactions.
SAP Menu Path:
SUIM
1. Object Class: Financial Accounting
Object: F_REGU_KOA
Vendor: Automatic Payment: Operation Authorization
for Account
Possible Authorization:
Definition:
Using this authorization object, you determine which activities are
allowed with the payment program for which account types (D for
customer or K for vendor).
2. Object Class: Financial Accounting
Object: F_REGU_BUK
Vendor: Automatic Payment: Operation Authorization
for Company Code
Possible Authorization:
Definition:
Using this authorization object, you determine which activities are
allowed for the payment program.
Procedures:
1. Check all authorizations & profiles linked to the critical authorization objects.
2. Review the individual's established user role to ensure access is required to complete
job responsibilities based on job title and department.
3.0 Revenue Audit
Test 01 - Overall Cycle Process Flow Narrative
________________________________________________________________________
_____
SAP Revenue Cycle
Sales Order Processing
Sales orders can be received in many ways, as follows:
Sales orders can only be entered if the customer already exists in the Customer Master
file.
When a sales order is input into SAP, the Order Processing system (Logistics < Sales and
Distribution, Order < Create) inputs the type of transaction to be processed. The options
are as follows:
· Standard order (code OR); is the most frequently used code
· Consignment
· Rush order
· Cash order
· Free of Charge Delivery (FD)
· Credit Memo Request (CR)
· Request for Return (RE)
The transaction type input into the system determines the options available at the next
screen.
· Customer number
· Material number
· Quantity
In general, the remainder of the data (e.g., customer name, price, etc.) will be extracted
from the Customer Master File, Material Master File, and Price Master File. Details
regarding delivery information can be input manually or can be defaulted from the
customer master file.
If the SOP Clerk forgets to input certain data, one of two things will happen:
· If the data is required, the transactions will not continue until the data has been input.
· If the data is not required, the system displays a warning, but will continue to process
even without the data. However, the sales order will appear in the Incompletion Log.
This log can be accessed by Logistics < Sales and Distribution < Sales < Order <
Incomplete Orders < execute button
After a sales order has been input and saved, it can be changed (Order < Change).
Credit:
SAP has the capability to review each order to ascertain if the customer has exceeded
their credit limit. This review is performed in the FI module. However, it is possible for
the company to configure the system so that the credit check is not performed. This must
be reviewed by the auditor.
If a credit check is performed and the customer has exceeded their credit limit, the order
can be blocked at one of three stages:
· Order processing stage (this is the most common and most logical stage)
· Delivery set up stage (i.e., after the order has been sent to the warehouse but before the
order is picked)
· Shipment stage
The auditor should ascertain the stage at which credit blocks are initiated.
Shipment of Goods:
Deliveries are initiated by one of three methods:
· Run a batch program of all deliveries scheduled for a certain day (most common
method)
· Run a report from SAP called Delivery Due List
· Process a selected, individual, delivery
The auditor should ascertain how orders are communicated to the warehouse.
Deliveries are scheduled by working through a Backwards Scheduling Process. Once the
SOP Clerk has input the date on which the customer needs the goods, SAP calculates
(through parameters established in the system), the date on which the goods must be
picked, packed, and shipped in order for the customer to receive the goods on the
requested date.
To start the delivery process, sales order information in transmitted to the warehouse.
Next, picking and packing of the product occur in the warehouse. After these processes
are completed, the goods are shipped.
Once the carrier has shipped the goods, the user accesses the Change Delivery: Overview
- Picking screen. He/she then inputs the quantity of goods picked. This amount must
equal the delivery quantity, which is displayed on the line directly above (the delivery
quantity can be viewed by the warehouse, but normally cannot be changed). If the
amounts do not agree, the system does not proceed.
If the amounts agree, the operator then clicks on a box called Post Goods Issue. This
creates the following journal entry:
Dr: CGS
Cr: Inventory
It also relieves the perpetual inventory records and closes out the sales order.
Once a delivery has been input into Post Goods Issue, it cannot be changed. In R4.X, it
can be changed or reversed.
The following SAP terms are frequently used in the Shipping area:
Picking Date: date goods are picked
Loading Date: date goods are loaded for delivery'
Goods Issue Date: date goods are physically delivered and relieved from Inventory
Delivery Date: date the goods arrive at the customer (this is not the date the goods are
delivered from the warehouse; important to know this for cut-off testing)
Billing:
Billing generally occurs after goods have been shipped. Bills are usually generated in
one of three ways:
· Run a batch program of all completed deliveries by customer
· Run a report from SAP called Billing Due List
· Process a selected, individual invoice
The auditor should ascertain how invoices are prepared.
Invoices are usually generated off of the completed shipments. SAP automatically
extracts the appropriate information from the system and prepares the invoice.
However, invoices can be generated without a shipment as long as a valid sales order is
in the system. This would occur where there is no physical shipment of inventory (e.g.,
services, freight charges, etc.).
In addition, it is also possible to create an invoice without even a sales order. This must
be done via the FI module by generating a debit memo document.
Once the invoice has been created, the following journal entry occurs:
Dr: AR
Cr: Sales
The invoice also updates the customer's subsidiary AR records, the credit master file, and
the sales order file.
In general, the invoice will automatically perform the above entries and updates.
However, there is a system flag which, if not set, will suppress the automatic recording of
the transaction. This is called a "posting block," and it is sometimes activated to give the
company an opportunity to reverse a transaction before it is posted. If this is the case,
then the transactions will not automatically post, but will instead be posted in a batch
mode.
The auditor should ascertain if the posting block is active.
Pricing:
Pricing in SAP is transmitted to the invoice by one of the following methods:
· Automatically transferred over from the price master file
· Automatically transferred over from the price master file and/or the customer master
file (e.g., used if the customer receives the standard price less a special discount)
· Manually input into the invoice/sales order
Finally, it is also possible for the individual who posts paid invoices to alter the price.
Changing the original discounts terms granted to the customer can do this.
The auditor should ascertain the methods by which prices can be changed.
Credit Memos:
There are two types of returns/credits granted to customers:
· Return Request: goods are to be physically returned by the customer
· Credit Memo Request: goods will not be physically returned (e.g., pricing error)
For a Return Request, the user accesses the Sales Order screen and creates a new sales
order under the code RE. He/she then continues with the same process as with a regular
sales order. The system may/may not require him/her to input a reason code explaining
the reason for the return.
When the goods are returned, the user inputs the return into the system in the same
manner as regular delivery except with a different code (LR). The return is linked to the
Return Request and is posted with the following journal entry:
Dr: Inventory
Cr: CGS
To actually grant the customer credit, a bill is created, and the following journal entry is
made:
Dr: Sales
Cr: AR
The customer's account is also updated in the AR subsidiary records.
For a credit memo, there is no physical return of goods. A sales order is created under
the code CR, but a journal entry is not made at this stage. A bill is created, and the entry
as above is made.
For credit memos, SAP sets up a "billing block" in the system. This means that a credit
memo cannot be generated (i.e., a bill cannot be created) until a supervisor has approved
the CR sales order. However, the company may have removed this block in the IMG
module.
The auditor should ascertain if the billing block is active.
Also, it is possible to create a credit memo without referring to an original sales order.
Again, SAP can configure to prevent this and to require every credit memo to be
referenced to an original sales order.
Review all credit memos and those created by using the FB01 transaction in the FI
module.
Posting of Receivables:
Keying of receipts into the system generates the following journal entry:
Dr: Cash
Cr: AR
This also relieves the customer's subsidiary AR account.
Reconciliation of Subsidiary Ledger to GL:
There should be no reconciling items in the main account. However, items will
frequently be recorded in another AR account, so it is important that this account be
reviewed (e.g., receipts which cannot be matched to a customer).
Security Administration for Sales Order Processing, Credit, Shipping, Billing,
Accounts Receivable and General Ledger
1. When access is established for an individual, how do you know that access is
approved and is appropriate for the employee? Please consider segregation of
duties issues.
Sales Order Processing
1. Who can create sales order?
2. How do you know that all sales order data (e.g. customer name, quantity, and
ship to address) was input accurately? Review the IMG settings for Document
Settings.
3. How do you know that all prices in the system are accurate? (What would
happen if someone input an incorrect price into the master file or could override
a price in the master file without authorization)?
4. How do you know that all no-charge orders are authorized?
5. How do you know that every sales order was filled? (What would happen if
someone never shipped the merchandise to the customer?) Review Shipped not
billed report.
6. How do you know that all changes to master file data (i.e. customer and pricing
data) is authorized and accurately input into the system?
Credit
1. How do you know that all new customers have been checked to make sure they
meet your credit standards?
2. How do you prevent a customer from exceeding their authorized credit limit?
(The SAP system has a blocking system, which can block all sales orders exceeding
the customers credit limit. The blocking system should be activated.) Review the
IMG settings.
3. How do you ensure that all credit overrides are authorized? (All block releases
should be independently reviewed for appropriate authorizations)
4. How do you prevent shipments to customers’ accounts with balances which are
past due balances or previously written-off? (The same blocking feature which
blocks sales orders for customers over their credit should be set up to also block
customers which have past due balances. The independent review process for
credit block releases & past due block releases should be on the same report or can
be viewed within the system at the same location. Customers who are written-off
should be blocked within the customer master file; therefore, sales orders cannot
even be created.)
5. How do you ensure that all credit limits are up to date?
6. How do you know that your computer data (credit limits) is protected from
unauthorized use? (What prevents or detects unauthorized changes or
approvals to credit limits? How do you know that all changes are accurately
input?)
Shipping
1. How do you know that all shipments are authorized? (What prevents someone
from processing a shipment without authorization?) (Within the SAP system once
a sales order is created it electronically sends information to the warehouse, which
creates a delivery note based on the original sales order. More then one delivery
note can be created for a sales order.)
2. How do you know that the quantity of product shipped to the customer equals
the quantity of product billed to the customer? (What prevents someone from
accidentally shipping the customer more or less than what was invoiced?) (The
SAP system is integrated. Invoices are based on the completed delivery note.
Generally, for most companies, once the shipment is completed the warehouse
notifies the department, which is responsible for generating invoices, so they can
then run a batch update to generate invoices for all completed deliveries.)
3. How do you know that every shipment was recorded in the general ledger?
(What prevents someone from shipping goods and forgetting to record the
shipment?) (Within the SAP system, once a delivery note is marked as completed
and an invoice has been generated, the G/L is automatically updated.)
4. How do you know that every shipment was recorded accurately? (What
prevents someone from recording a shipment at the wrong quantity?) (Within
the SAP system once the pick & pack quantities are keyed in and marked as
completed, the system will automatically update the proper quantity. However, the
company needs to verify that what is listed on the delivery note is actually what gets
shipped. Usually, companies have the courier delivering the goods sign a copy of
the completed delivery note or attach a copy of the bill of lading to the completed
delivery note.)
5. How do you know that shipments are recorded in the correct accounting period?
(What prevents someone from invoicing goods in one month, but shipping them
in the next month?) (Within the SAP system invoices are generated based on the
delivery documents; therefore, you need to verify the completed delivery notes are
batch processed for invoicing within a timely manner & all deliveries which are
picked & packed and ready to be shipped are marked as completed. A report can be
generated or viewed on the system, which shows all deliveries completed but not yet
invoiced & another report can be seen which shows all open deliveries. Also, in
addition to verifying the delivery note is completed & the invoice is generated you
have to make sure that the goods were actually shipped out in a timely manner.
Usually, companies have the courier delivering the goods sign a copy of the
completed delivery note or attach a copy of the bill of lading to the completed
delivery note. )
6. How do you know that a shipment is only recorded in the general ledger one time?
(This is controlled by the SAP system. Since the system is integrated you can only
update the G/L once. Also, in case of partial orders, more than one delivery &
corresponding invoice can be created for a sales order. )
1. How do you know that an invoice has been generated for every shipment? (What
prevents someone from shipping goods and forgetting to generate an invoice?)
(This is controlled by the SAP system. Most companies batch process their
completed deliveries to be invoiced; therefore, each completed delivery is assured to
have an invoice generated. Also, reports can be viewed which show all completed
deliveries not yet invoiced & all open deliveries.)
2. How do you know that every invoice has a shipment? (What prevents someone
from generating an invoice, but never shipping the goods?) (Within the SAP
system all invoices have to have a corresponding delivery note (showing the goods
which been picked & packed); however, you have to verify that once the invoice is
generated that the goods are actually shipped.)
3. How do you know that the quantity on the invoice equals the quantity shipped?
(What prevents someone from shipping goods and inadvertently generating an
invoice for a different quantity than shipped?) (This is controlled by the SAP
system. Invoices are generated based on the delivery documents.)
4. How do you know that every invoice is recorded in the accounts receivable
subsidiary and general ledger? (What prevents someone from preparing an
invoice and forgetting to record the invoice?) (This is controlled by the SAP
system. Once an invoice is generated the subsidiary ledger & G/L is automatically
updated.)
5. How do you know that every invoice is recorded accurately? (What prevents
someone from recording an invoice to the wrong customer or for the wrong
amount?) (This is controlled by the SAP system. Since the system is integrated, as
long as the sales order information is accurate the invoice, once generated, will
automatically update to the proper account.)
6. What prevents duplicate recording of sales? The system should be configured to
look for duplicate customer purchase order numbers on the sale orders
Customer Remittances
1. How do you know that remittances relate to sales?
2. How do you know that all remittances are recorded in the accounts receivable
subsidiary ledger and updated to the general ledger? (What prevents someone
from receiving a remittance and forgetting to record the remittance?)
3. How are partial payments handled?
4. How do you ensure collection of remittances, which are returned by the bank for
“non-sufficient funds”?
5. Do the individuals who record customer remittances have the ability to:
receive checks returned by the bank for “non-sufficient funds”?
prepare bank reconciliation’s?
prepare cash disbursements?
access petty cash or other cash funds?
Accounts Receivable
1. How do you prevent acceptance of returns from customers, which were not
authorized by the company? (Ideally, the group authorizing the return should
create a return order within the SAP system. The warehouse should then create a
return delivery document once the goods are returned based on the return order.
Another department should then review the return order and return delivery
documents including proof of goods receipts and create a credit memo.)
2. How do you know that every customer return, adjustment and write-off of an
accounts receivable balance was accurately and correctly recorded? (What
prevents someone from recording one of these adjustments to the wrong
customer or at the wrong price?)
3. How do you ensure that the amount of a customer return reflects the original
purchase price? (In SAP you can reference the return back to the original sales
order.)
4. How do you ensure that past due balances are detected and collection efforts
are taken? (The SAP blocking system for past due balances should be activated
and all releases should be properly reviewed.)
5. How do you know that all bad debt write-offs are authorized? (What would
happen if someone wrote off an account without authorization?)
6. How do you know that customer complaints are addressed and resolved in a
timely manner?
SAP DETAILED TESTING FOR REVENUE
DETAILED INVOICE TESTING AND SALES CUT-OFF TESTING
Section 1 (Selecting Shipments for Detailed Invoice & Cut-off Testing)
In order to get a listing of all delivery’s for a certain date you can run a table, which will
give you the information needed to make your initial detailed invoice & cut-off
selections.
1. Input Transaction code: SE17
2. Input Table code: LIKP
3. At this screen you will have to establish the settings and parameters so you can view
the information which you will need. Follow the menu path: Settings -> User
Parameters. Then at the “maximum output” box you want to key in several 9’s until you
fill up the entire box and then under “key word” you want to select the “field text” item.
Hit enter or execute.
4. Once you have completed the above step you then want to set up your search range
which will be based on the delivery date. Follow the menu path: Settings -> Selection
Criteria. At this point you want to select the “delivery date” item. Hit enter or execute.
5. You will now need to establish the fields that you want to view when your table is
generated. Follow the menu path: Settings -> List Format -> Select Column. At this
point you will be looking at all the fields which you can view when the table is generated.
All of the fields you see will already be selected and since you don’t need all of the extra
fields the easiest way pick only the ones you want is to go to the bottom and hit “deselect
all”. This will clear all of the fields and let you select the ones you want. Select fields:
Delivery (this will be the delivery number), Delivery Date, Delivery Type, and Sold-to-
party (this will be the customer number.) Hit enter or execute.
6. Then you will need to specify the date range for the delivery’s you want generated.
It’s best to pick a range that will allow you to make both your detailed sales invoice test
selections along with your sales-cut off selections. Hit enter or execute.
From the above data make your selections and then you can proceed to the rest of the
testing.
Note: You only need to look at delivery types for shipments. A delivery type can also
apply to a return delivery. The delivery types may not all be explained within the system.
You may need to ask the client what all of the delivery types mean. In order to view the
delivery type in the system double click on the line item and then you will see all the
information available for that line item. Go to and click on the delivery type box and
then click on the down arrow to view the different delivery types.
Section 2 (Using the Delivery Number obtained from Step 1 for further Testing)
1. Enter the transaction code: VL03; Hit enter or execute
2. Input the delivery number of the item you want to test. Hit enter or execute.
3. Once at the delivery information screen follow the menu path: Environment ->
Document Flow.
You will then be at a screen, which will show you the entire flow of this item from the
original order to the posting in the A/R.
4. Place your cursor at anyone of the items, which you want to view and then hit the
“Display Document” icon, which will take you to that document. (Detail on specifics
provided below at Sections 3 for Cut-off Testing & Section 4 for Detailed Invoice
Testing)
Section 3 (Cut-off Testing)
From the document flow in Section 2 you can obtain the information needed for Sales
Cut-off Testing.
1. “Display Document” the Sales Order to obtain the order information and the Invoice
to obtain billing information.
Note: Displaying the Sales Order & the Invoice will only get you half way through the
test. You should also ask to see the courier’s signature relating to the pick up of the sales
items to verify the goods were actually shipped.
Section 4 (Detailed Invoice Testing)
Note: This section assumes that you have already performed the steps in Section 2.
1. (Sales Order)
“Display Document” the sales order to view the order information. In addition to
viewing the order information, select orders to trace to the original source documents
(customer order form, fax from client, etc…). This is to ensure that the orders were
accurately inputted into the system and were properly approved.
Note: The delivered amount should trace back to the original sales order; however, keep
in mind that the delivery could be for only part of the sales order. A sales order could
have more than one delivery note.
2. (Viewing the Sales Invoice & Detailed Price testing of Materials)
a. “Display Documenting” the invoice will let you view the Net Invoice Value,
Gross Price of the item you selected, the cash discount - based on payment terms
which may be applicable, etc.... (See Step 4 below for more specifics on how to
test payment terms & Discounts.) FYI: If you double click on any of the line
items you should be able to drill down to more information.
b. Click the empty box next to the specific material item you want to test and
then click on the “Pricing” icon you will be able to view the pricing information
for that material item. However, you can only view the pricing information for
one material item at a time.
c. The pricing information screen will get you the information needed for your
detailed price test. The pricing screen will have the material number, a
description of the item and also the rate for just one unit of the item selected.
Once you get this information you can agree it to approved price sheets to
complete your testing or depending on how the company has structured the
pricing you may need to obtain more information.
d. For additional pricing information follow the menu path: Header -> Detail.
Once at the Header screen, look under the Price Data section and you will see
information regarding the Price List Type, Customer Group, Price Group, &
Pricing Procedure. Depending on the client pricing structure, they may use any of
the above types or groups to define specific prices or they may not use any of
these items and rely on manual pricing structures. You may not know what the
clients pricing structure is based on until you are on site, but it is easier to
document the other price data information while you are making your pricing
selections and determine once you get on site whether you need it or not.
e. Also, as part of your detailed invoice testing you should recalculate the
material price times the quantity purchased for accuracy. This should be done for
all of the different material items on the invoice and all of the material totals
should equal the total on the invoice. The tax amount should also be recalculated
for accuracy.
3. (Relief of Inventory)
The goods issue information shows when the inventory was updated along with the
related movement type. You can just look at the date in the Document Flow to find out
when or if this occurred (This is sufficient for testing to see if the item was released from
inventory, whoever tests inventory will test to see if the goods issue function is working
correctly). If a goods issue line item is not there then chances are it has not taken place
and if it should have you or the person testing inventory should follow up on why it
hasn’t been done. If for any reason you need to see the specific inventory movement
information on the goods you can “Display Document” the Goods Issue Line and it
should provide you with the specific movement type.
4. (Update of Customer A/R and Payment Terms)
“Display Document” the Accounting information to see the journal entry to post to A/R,
Sales and to any other needed accrual (i.e. taxes). Once at the Accounting Document you
will see the entry to the individual customer’s account, which is sufficient for testing if
the customer’s accounts receivable subsidiary records were updated. Also from the
Accounting Document you can drill down on different line items of the entry to view
additional information. Drilling down on the customer A/R portion will take you to the
payment terms (See below for more information).
At the document flow screen, when you look at the processing status next to the
Accounting Document and you see the words “Not Cleared” it does not mean the account
has not been posted. However, it means that the customer has not yet paid the invoice
and “Cleared” means the customer has already paid. When you display the Accounting
Document you can see the date the entry was posted on, which is also the date shown on
the document flow screen.
Payment Terms: (After you drill down into the customer’s A/R side of the entry)
Under the Additional details you can see the payment terms, which will dictate, if
a customer is allowed to take a discount and what the amounts are. If you click in
this box and then click on the down arrow, an explanation of the payment terms
will appear.
The Discount Base will usually always be filled in regardless of whether there is a
discount set up or not. If there is not then it is not used but if the payment terms
state that a discount will be given then this is the base amount used to calculate it.
The Baseline date shows the starting date that is used to calculate the discount or
it is the due date if there is no discount. (Some companies may have built in extra
days from the invoice date for the customer to pay to allow for shipment time, this
would not be evident in the baseline date)
The Discount Amount shows the actually discount taken or not taken if the
amount has cleared (been paid). If the invoice has not been paid and the discount
time has not lapsed it will show a zero amount.
The Days/percent will show the calculation and the number of days used to
calculate the discount. This calculation should correspond to the payment terms.
5. (Customer Credit Information)
In order to view the credit information you have to follow several different steps. I have
put the items in the order which I like to view them; however, once you’ve been on the
system for a while you can choice the order you like best. As part of your detailed testing
of your subselections you should combine your credit testing and your past due and over
the credit limit testing. This will give you the same assurance, as picking your samples
separately but it will save you a great deal of time.
Note: During your testing you have to look at different information and make a
judgement as to the credit worthiness of the customers you have selected this will help
you use other data to judge the customer.
a.
Follow the menu path: Accounting -> Financial Accounting -> Accounts receivable ->
Credit Management -> Display. You may also just use transaction code: FD33 to get you
there also.
Then at the screen input the customer name and credit control area information. Also,
select all items from the selection categories by marking each one individually or by
hitting the select all button. Hit enter or execute.
You will then be at a screen where you can view various amounts of customer credit data;
however, you are better off continuing to the credit master sheet which will have the
same information plus other items. This way you can view all of the information you
need all in one place.
From the customer display screen which you are at you want to follow the menu path:
Environment -> Credit Master Sheet. The credit master sheet will have the credit limit, a
recent customer aging analysis, and various other information.
The current aging should tell you a lot about their current outstanding balances.
b.
Follow the menu path: Accounting -> Financial Accounting -> Account -> Display ->
Line item. Then input in the customer name and company code. Select all items under
“Line Item Selections.” The “Settings” should be “Dunning Data” for “Line Layout,”
“Document Type – Posting Key” for “Total Variant,” and “Standard” for the “Sort
Variant.” Then hit enter or execute.
You will be able to see which items have cleared and which ones have not. If you want
to see if there were any past due payments at the time your invoice was generated you
can sort the items by the due date by putting the cursor on the phrase “due date” and
clicking on the sort button. You will also need to add an additional field for the clearing
date so you can tell what dates the items cleared on. You can add an additional field by
placing the cursor where you want the field to be added and then by clicking on the
additional field button and selecting the field that you want. Once you have done this
you are ready to look at the data.
Note1: If the arrears number is negative and the payment has cleared then that is the
number of days ahead of the due date which the customer made the payment. If the
payment has not cleared and the arrears number is negative then that is the number of
days remaining until the due date. If the arrears number is positive and the payment has
cleared then that is the number of days the customer was past due on their payment from
their due date. If the payment has not cleared and the arrears number is negative then that
is number of days that they are already past due form their due date.
Note2: The above steps should be done in addition to looking at the block release
information related to the customer because you want to double check if their should
have been a block for the customer based on either their credit limit or for being past due
on a payment. Looking at the above information should give you a basic feel for the
customers credit history with the company, which is very important. If the company has
not activated the blocking feature then you also want to view the information above to
see if there should have been some sort of block in place by other means. Also, you need
to get an understanding from the client what those other means are and if they are
adequate.
Note: for your subselection you should trace them to see if the appropriate approvals
were obtained to establish the customer’s credit limit and also if the limits were
established according to company policy.
Additional items to be looked at:
Credit Testing – Including looking at block releases
For Sale Return
Tans Code se17
Table VBAK
Setting - List Format - Select Columns
Fill in ERDAT - Date String
Fill in AUART - Order Type
To View Changes
SD - Master Data - Business Partner - Sold to party - Display Changes - Multiple
Customers or display customer (multiple is for more than one) This is for changes or
updates to the Customer Master
FD04 or Accounting -> Financial Accounting -> Accounts Receivable -> Master
Records -> Display Changes
Miscellaneous
At Account Analysis: GOTO-> Open Items -> All Items -> Cash Discount Terms
Test 03 - A/R Aging Test
________________________________________________________________________
_____
Purpose: To test the validity and accuracy of the accounts receivable aged trial
balance.
Scope: Selected __ invoices from the most recent aged trial balance.
SAP Menu Path:
Generate SAP A/R Aging Report.
Accounting --> Financial Accounting --> Accounts Receivable -->
Periodic Processing --> Info System --> Report Selection
Double Click INFORMATION SYSTEM / ACCOUNT INFORMATION /
DAYS OVER DUE ANALYSIS
Enter the following: _______
Customer Number: _______
Company Code: ______
Fiscal Year: ____ / ____
Open Items at Key Date: _______
Output Control List - Due Date Sorted List: _______
Execute
Attributes:
A - Recalculated age of the receivable based on date shipped and
determined that the invoice amount is recorded in the proper aging
category.
Make sure to select invoices in the <90 Days Outstanding category to
ensure that invoices were aged in the proper periods. In order to reduce
the amount of write-offs, and thus, the bad debt reserve, it is possible
that companies may place invoices in improper buckets. Also, the
auditor should verify the invoice date against that maintained in the
system within the A/R account.
Customer Invoice Invoice Date Date A/R Invoice A
Name / Number Was Amount
Number Recorded
1
2
3
4
5
Test 04 - Detailed Sales Invoice Test
________________________________________________________________________
_____
Purpose: To test controls over the accurate processing and recorded of sales orders
and invoices.
Scope: Selected __ shipments from shipping records.
SAP Menu Path:
1. Transaction Code: /NSE17 --> Enter
Table Code: LIKP --> Enter
Settings --> Selection Criteria (select DELIVERY DATE)
Settings --> User Parameters (key in many 9s in the "maximum
output" box and select FIELD TEXT)
Settings --> List Format --> Select Column (select VBELN:
DELIVERY, LFART: DELIVERY TYPE, AUTLE: COMPLETE
DELIVERY, WADAT: GOODS ISSUE DATE, KUNAG: SOLD-
TO-PARTY, FKDAT: BILLING DATE) --> Execute
2. Transaction Code: /NVL03
Input DELIVERY NUMBER (from above generated report) -->
Enter
Environment --> Document Flow (FI Module)
DOCUMENT FLOW can lead to the three different modules in
SAP by highlighting the following items in the Document Flow:
a. ORDER column --> Display Documents (SD Module): Sales
Order Information
b. GD GOOD ISSUE --> Display Documents (MM Module)
Goods Movement Information --> Accounting Docs --> Double
Click the Accounting Documents Number: journal entries made by
SAP for the inventory goods movement
c. ACCOUNTING DOCUMENT -->Display Document (FI Module): Accounting
Information: journal entries made by SAP for the sales, discount,
and taxes related to the shipment
LEGEND (may be deleted if use pop-up)
A - Traced and agreed shipping documentation (bills of lading) to sales orders and
invoice.
B - Noted ship date and ensured that invoice was recorded in the proper period.
C - Traced and agreed invoices price to approved price lists. Verified that all special
pricing has been approved in accordance to company's policies.
D - Traced to posting in customer's account to A/R subledger.
E - Traced to the Inventory Perpetual Records to ensure proper relief of inventory.
(Coordinate with Inventory Cycle Testing.)
X - Attribute met without exception.
Test 05 - No Charge Sales Order Test
________________________________________________________________________
_____
Purpose: To test controls over the authorization and shipment of no-charge orders.
Scope: Selected __ no charge sales from SAP native report.
Summary of Test:
Customer Number Delivery Number Invoice # Invoice Date A
1
2
3
4
5
LEGEND (may delete if use pop-up)
A - Traced to shipping documentation (i.e. bill of lading) agreeing all pertinent
information.
B - Traced to supporting documentation noting appropriateness of no-charge order and
appropriate approval in accordance with company policy.
X - Attribute met without exception.
Test 06 - Past Due Balances and Credit Hold Test
________________________________________________________________________
_____
Purpose: To determine if shipment of goods is being withheld from customers with
past due balances and on credit hold. To determine if collection efforts are
being conducted in accordance with company policy.
Scope: Selected 5 customers with A/R balances past due and on credit hold.
SAP Menu Path:
1. Generate SAP A/R Aging Report.
Accounting --> Financial Accounting --> Accounts Receivable -->
Periodic Processing --> Info System --> Report Selection
Double Click INFORMATION SYSTEM / ACCOUNT INFORMATION
/ DAYS OVER DUE ANALYSIS
Enter the following:
Customer Number: XXXXXX to XXXXXX
Company Code: XXXX
Fiscal Year: YYYY
Open Items at Key Date: MM/DD/YYYY (given)
Output Control List - Due Date Sorted List: (Blank) (30) (60) (90) (120)
Execute
2. Selected ___ Customer with over 90 days past due balances (See
the Summary of Test for details)
Accounting --> Financial Accounting --> Accounts Receivable -->
Master Records --> Display
Select all listed items (Enter and use the NEXT SCREEN key to review
the customer's general information, including block payment status)
Continue by using the following menu path:
Environment --> Credit Management
Key in: CUSTOMER NUMBER (From the above list) / COMPANY
CODE (XXXX)
Select all listed items, except CENTRAL DATA, (Enter and use the
NEXT SCREEN key to review the customer's credit limits, current
outstanding A/R balance, and payment history)
Credit Hold Procedures:
There are two types of credit hold in the Company's SAP system by
blocking the customer's account. 1. Automatic block: SAP system blocks
the customer's account when its outstanding A/R balance is over its credit
limits. The blocked can be released by ___________, ___position___,
upon the Company's financial manager's approval.
2. Manual block: ____________, ___position___, blocks the past due
customer's account by the customer groups. They are as follows:
Customer Group Credit Limit (Standard) Credit Hold Conditions
Summary of Test:
Customer Customer A B C
Number
1
2
3
4
5
LEGEND (may delete if use pop-up)
A - Obtain the Credit Department files and review the correspondence to ensure that the
account is followed up on a current basis.
B - Verified that shipments are not made to customers with long outstanding past due
balances or on credit hold.
C - Reviewed the credit investigation procedures performed on these customers to ensure
that company policy was followed.
X - Attribute met without exception.
Test 07 - Customer With No Credit Limits Test
________________________________________________________________________
_____
Purpose: To determine if shipment of goods is being withheld from customers with
no credit limits. To determine if collection efforts are being conducted in
accordance with company policy.
Scope: Searched 100% customers with no credit limits.
Source:
SAP Menu Path:
1. Accounting --> Financial Accounting -->
Accounts Receivable --> Master Records Display
Enter the followings:
a. Customer number from the attached file
b. Company code (XXXX)
c. Select ADDRESS & PAYMENT TRANSACTION (General
Data), PAYMENT DATA (Company Data)
2. Environment --> Credit Management
Enter the followings:
a. Customer number (usually already exist in the
field after the step 1)
b. Company code (usually already exist in the field
after the step 1)
c. Select OVERVIEW (Overview), ADDRESS (General Data),
STATUS & PAYMENT HISTORY (Credit Control Area Data)
Findings: Total ____ sold-to customers has zero credit limits, including ___
customer(s) have outstanding A/R balances, and ___ customer(s) has
credit A/R balance.
The outstanding A/R balances equal to _______, (approximately USD
_____). The outstanding credit A/R balance equals to _____,
(approximately USD ___)
Test 08 - Sales Cut-Off Test
________________________________________________________________________
_____
Purpose: To ensure that sales activity was recorded within the proper
accounting period.
Scope: Selected __ shipping documents __ days before and __days after the
quarter close for both the current quarter under review and year-end
activity.
Stratify your sample size to include shipping activity based on:
a. Materiality of sales transactions
b. Types of shipments, i.e., end users, intercompany, sales
representative, or distributions
Testing Attribute:
A. Compared shipping date to invoice date and ensured that the
sale was recorded in the proper period.
B. Agreed shipping documents to signed bills of lading from the
carrier, noting the date of shipment.
Summary of Test:
Customer Shipping Shipping Invoice Invoice Invoice A B
Name / Doc. # Date Date Number Amount
Number
1
2
3
4
5
6
7
8
9
10
Test 09 - A/R Write Off Test
________________________________________________________________________
_____
Purpose: To test the controls over authorization and collection efforts of accounts
receivable write-offs.
Scope: Select 100% Customer write-offs from the SAP Allowance for Doubtful
Account in YYYY (based on audit scope). The items selected were actual
write-offs and not just the establishment of an A/R reserve. In other
words, the items selected were part of the following entry:
Dr: Allowance for Doubtful Accounts,
Cr: Accounts Receivable
SAP Menu Path:
1. Allowance for Doubtful Account Number = _______
2. Accounting --> Financial Accounting --> General Ledger -->
Account --> Display Balances
Enter the following information:
Account Number = ______
Company Code = ______
Fiscal Year = ___ /____
Enter
3. Double click on each line item show on the screen to obtain the
document number
(See below SUMMARY OF TEST for details)
4. Accounting --> Financial Accounting --> Accounts Receivable -->
Document --> Display
Enter Document Number / Company Code / Fiscal Year --> Enter -
-> Double Click on the Document Number to obtain detailed
information ==> look in the TEXT area for Customer Number, if
not in the TEXT area, the customer name and/or account number
will be listed.
5. Accounting --> Financial Accounting --> Accounts Receivable -->
Master Records -> Display
Enter Customer Number / Company Code / Selected all of the
General Data & Company Data --> Enter --> Click on the NEXT
SCREEN key 4 times to DISPLAY CUSTOMER: PAYMENT
TRANSACTION screen, you will see letter "A" in the Automatic
Payment Transactions / Payment Block field which means that the
customer was block for future order/shipping process.
Summary of Test:
CUSTOMER / SAP system generated Date of A B C
CUSTOMER NUMBER Document Number write-off
1
2
3
LEGEND (may be deleted if use pop-up)
A - Review collection efforts made prior to write-off and subsequent to write-off.
B - Traced to written authorization for the write-off.
C - Traced and agreed to the AR subsidiary and general ledger.
D - Ensured that credit limit for customer has been reduced to zero to prevent future
shipments.
X - Attribute met without exception.
Test 10 - Reserve for Doubtful Account Test
________________________________________________________________________
_____
Purpose: To test the calculation of the Company reserve for doubtful accounts, and to
determine the reasonableness of the reserve amount.
Scope: Review the most recent month end doubtful accounts reserve (i.e., the cut-off
date for the audit). Also, concentrate your testing on the year-end doubtful
accounts reserve value.
Note: Ensure that management is performing a quarterly doubtful
accounts analysis to determine if a reserve is necessary. If this is
not being performed, then a comment is warranted.
Materiality should always be considered, evaluated and discussed
with the Team Coordinator, Job Manager and company personnel
in determining whether to establish a doubtful accounts reserve.
SAP Menu Path:
1. Allowance for Doubtful Account Number = ______
2. Accounting --> Financial Accounting --> General Ledger --> Account -->
Display Balances
Enter the following information:
Account Number = ________
Company Code = ______
Fiscal Year = _____ / _____
Enter
3. Double click on each line item show on the screen to obtain the document
number
(See below SUMMARY OF TEST for details)
The purpose of the reserve account is to adjust the receivable asset position to
a net realizable amount (i.e., the amount judged to be collectible). In
establishing and adjusting the level of the reserve, we are also attempting to
record the bad debt expense against the income of the period in which it is
recognized.
The reserve for uncollectible accounts should be supportable and not an
arbitrary estimate. The reserve account should not include over, short and
damaged charges, promotional allowances, or other customer adjustments.
These items should be expensed directly.
The method utilized by each company shall be decided based upon company
requirements.
First Quarter Second Quarter Third Quarter Fourth
Quarter
(YTD)
Total A/R Write-Offs (YYYY)
Less: Total Write-Off
Recoveries
Net Bad Debt Losses
Gross Receivables
Net Bad Debt Losses
As a % of Gross Receivables
Test 11 - Sales Return Reserve Account Test
________________________________________________________________________
_____
Purpose: To test the calculation of the Company reserve for right of return and to
determine the reasonableness of the reserve amount.
Scope: Review the most recent month end sales return reserve (i.e., the cut-off date
for the audit). Also, concentrate your testing on the year-end sales return
reserve value.
Note: Ensure that management is performing a quarterly sales return
analysis to determine if a reserve is necessary. If this is not being
performed, then a comment is warranted.
Most companies normally do not carry a sales return reserve on
their books unless the return activity represents a material
amount. Materiality should always be considered, evaluated and
discussed with the Team Coordinator, Job Manager and company
personnel.
SAP Menu Path:
1. Sales Return Account Number = ________
2. Accounting --> Financial Accounting --> General Ledger --> Account -->
Display Balances
Enter the following information:
Account Number = ________
Company Code = _____
Fiscal Year = _____ / _____
Enter
Guidance: In calculating a reasonable sale return reserve, it is crucial for management to
perform a historical analysis of returns in order to understand the relationship
between sales and the sales returns which have occurred throughout the
existence of the Company. The question arises as to how many years the
Company should be using to obtain a reasonable representation of past
experiences. Ideally, an analysis consisting of figures from the past 10 years
would provide ample data on which to make a reasonable estimate based on
past experience. If the Company has not been in existence for that long, the
Company should use however many years of data are available. For those
companies in their first year of operations, management should probably
benchmark itself against other J&J operating companies who are in the same
business sector and who serve similar customers as a guide until they become
established. In all cases, estimates should be subject to management’s
judgment.
First Quarter Second Quarter Third Quarter Fourth
Quarter
(YTD)
Sales (YYYY, exclude intercompany)
Returns *
Reserve Balance
Returns as a % of Sales
Returns as a % of Reserve
* Make sure that the return value only encompasses actual product returns and not price
adjustments and/or product exchanges.
Test 12 - Sales Return and Adjustment Test
________________________________________________________________________
_____
Purpose: To ensure that sales returns and adjustments are authorized, accurately
recorded and appropriately documented.
Scope: Selected ___ credit memos for testing.
Period tested should be at least 6 months. Your selection should be
spread out over the time period under review and not concentrated in
only one month. Stratify your sample selection to include credit
memos for:
1. Product Returns
2. Price adjustments
3. Product defects
4. product exchanges
SAP Menu Path:
In SD Module:
1. Logistics --> Sales / Distribution --> Shipping --> Delivery -->
Display
Enter the DELIVERY NUMBER
2. Environment --> Document Flow --> Item with Deliv. Stat -->
Document Flow
3 Obtain Credit Memo Number and Accounting Document Number
4. Review Release for Credit Memo
Logistics --> Sales / Distribution --> Sales --> Orders --> Display
Enter the order return number (usually number starting with 6)
Click on the message CONSIDER THE SUBSEQUENT
DOCUMENT
Environment --> Changes
Execute
Double click on each line item to review the changes in return
related to the goods return
In FI Module:
1. Accounting --> Financial Accounting --> Accounts Receivable -
-> Document Display
Enter the following:
Accounting Document Number from above
Company Code
Fiscal Year (_____), press Enter
2. Environment --> Document Flow
3a. The document flow provides Order Number, Return Number,
Return Deliver Number, GD Return Block Number, Credit Memo
Number, and Accounting Document Number.
3b. High light each item, click on the DISPLAY DOCUMENT to
obtain further information at each stage of the process.
4. When the normal goods returned back to warehouse, the journal
entries for the sales were reversed.
In MM Module:
1. When normal goods returned back to warehouse, the inventory
movement shows that the inventory has added back to the inventory.
2. When damaged goods returned back to warehouse, the inventory
movement shows blocked for future sales. Usually the goods are
destroyed immediately.
Testing Attributes:
A. Reviewed credit memo and supporting documents (e.g. return
approval form) for appropriate management approval.
B. Traced to A/R subsidiary ledger, noting that credit memo was
recorded in a timely manner.
C. Review credits memos for appropriateness of the reason for issuing
the credit memo.
D. Agreed to prices and customer on the price to the original invoice.
E. Traced to approved receiving report or other evidence of receipt for
product returns and exchange.
F. Reviewed destruction authorization forms to ensure that the
product was appropriately disposed of for product defects, damages or
expired goods.
X. Attribute met without exception.
Summary of Test:
Custome Delivery Goods Credit A B C D E F
r Number Received Number
Number Date Date /
Credit
Number
1
2
3
4
5
Test 13 - Credit Approval Test
________________________________________________________________________
_____
Purpose: To review controls which ensure customer orders are approved for credit
prior to shipment and credit approval is granted in accordance with
company policy.
Scope: Selected __ recent customer invoices from SAP system generated report.
Selected __ new customers from SAP system.
Findings: The following table shows the standard credit limits set up per customer
group:
Customer Group Credit Limit (Standard)
Test 14 - Customer Master File Edit Report Test
________________________________________________________________________
_____
Purpose: To ensure that all changes to the customer master file are properly
authorized and reviewed.
Scope: Review the Company run edit reports for the changes made to the
customer master file from ______ up to current.
Source:
SAP Menu Pass: Information System --> Accounting --> Financial
Accounting --> Accounts Receivable --> Select Report -->
Adequacy / Documents --> Master Data --> Changes
(Transaction Code: SART; Program: RFDABLOO)
Key in: Customer Number (XXXXXX - XXXXXX)
Change Date (current date)
Check the three (3) items in the FURTHER
SELECTIONS
Obtained the Company generated daily reports for both new
vendors and changes made to the Vendor Master File from
________ up to current.
The following reports are used by the Company:
RFDABLOO
Findings: Process for update customer master file:
1. Who has access to create new customers to the customer
master file in SAP system?
2. Who has access to create new customers to OTC system?
Test 15 - Price Master File Report Test
________________________________________________________________________
_____
Purpose: To ensure that all changes to the price master file are properly
authorized and reviewed.
Scope: Review the Company price master edit reports for the changes
made to the price master file from January up to current.
Source:
Menu Pass: Information System --> Services --> Reports
Program Name:
Start Date: according to the audit scope
End Date: according to the audit scope
Reviewed the Company generated first four-month reports for all
price changes to the price master file.
Findings: Process for update customer master file:
1. Who approves price changes to the price master?
2. Who has access update the price in the price master file?
Test 16 - Detailed Cash Remittance Test
________________________________________________________________________
_____
Purpose: To test controls over the accurate processing and proper recording of cash
remittances.
Scope: 1. Select __ wire transfers from within two days before and after cut-off
from the bank statements.
2. Select __ days receipts from the "check book". Included receipts
immediately before and after the end of the quarter-end under review.
Selected a representative number of individual receipts from the above.
Checked Bank statement sequences.
Attribute:
A - Agreed the total days' receipts to control totals prepared at point of
receipt.
B - Agreed to deposit slips and timely recording (proper period) in cash
account or bank statements.
C - Agreed to check copies and/or remittance advice.
D - Traced and agreed to posting in AR subsidiary records.
X - Attribute met without exception.
Findings: 1. The Company currently uses __ banks for receiving cash remittances.
The reason is for the convenient of the customers.
The __ banks are as follows:
Bank Name Average Cash Collection vs. Total Cash
Receipts per Month
1
2
3
4
5
Customer Cash Remittances: Wire Transfers
Date of Amount Customer / Amount C
Receipt in Bank Received by Wire Customer Remitted
Number
1
2
3
4
5
6
Customer Cash Remittance: Checks
Date of Amount Date A B
Receipt Recorded
1
2
3
Customer / Amount C D
Customer Number Remitted
1
2
3
Conclusion: Based on the testing performed, the controls appear to be ________.
Test 17 - Access Test for Customer Master File
________________________________________________________________________
_____
Purpose: To ensure that individuals who have access to customer master file are
current employees and have the required access to perform their
current job responsibilities.
Source: SAP system
Scope: Obtained queries from the SAP system of all employees with access
to critical transactions. From the queries, CIA selected 100%
individuals in the critical objective identified by CIA from Goods
receipt for testing.
SAP Menu Path:
SUIM
Object Class: Financial Accounting
Object: F_KNA1_APP
Customer: Application Authorization
Definition:
Using this authorization object, you determine which activities are allowed
for customer master records. You can define this authorization separately
for the Financial Accounting (FI) and Sales and Distribution
(SD) applications. If an employee is allowed to edit the master data for
both applications, then he/she needs the authorization for both
applications.
Critical Fields:
Activity is all
Application is V
Note: V indicates that only the SD functions can be updated for the
customer master file. In the V function, a person can update
customer name, shipping address, billing address, and customer
contact name.
If update access is granted to FI, credit limits, bank information, VAT
number, payment terms, etc.
Each authorization and profile within the critical Object
must be tested. You may find some of the authorizations
and profiles are empty, which means that authorizations
and profiles are not used by the Company.
Procedures:
1. Check all authorizations & profiles linked to the critical authorization
objects.
2. Review the individual's established user role to ensure access is required
to complete job responsibilities based on job title and department.
Test 18 - Access Test for Price Master File
________________________________________________________________________
_____
Purpose: To ensure that individuals who have access to price master file are
current employees and have the required access to perform their
current job responsibilities.
Source: SAP system
Scope: Obtained queries from the SAP system of all employees with access
to critical transactions.
SAP Menu Path:
SUIM
1. Class: Sales and Distribution
Object : V_KONH_VKS
Condition: Authorization for Condition
Types
Definition:
Enables you to restrict user access to condition types. In addition, you
must maintain the authorization object V_KONH_VKO (controls
conditions within specific sales areas) and V_KONG_VWE (controls the
generation of condition tables).
Critical Field:
Activity:
01 Create
02 Change
2. Class: Sales and Distribution
Object : V_KONH_VKO
Condition: Authorization for Sales
Organizations
Definition:
Determines which activities are allowed in specified sales areas for the
maintenance of condition types in Sales & Distribution (SD). You must
also maintain the authorization object that allows users to work with
different condition types.
Critical Field:
Activity:
01 Create
02 Change
Each authorization and profile within the critical Object
must be tested. You may find some of the authorizations
and profiles are empty, which means that authorizations
and profiles are not used by the Company.
Procedures:
1. Check all authorizations & profiles linked to the critical authorization
objects.
2. Review the individual's established user role to ensure access is required to
complete job responsibilities based on job title and department.
Test 19 - Access Test for Sales Order Process
________________________________________________________________________
_____
Purpose: To ensure that individuals who have access to sales order process are
current employees and have the required access to perform their current
job responsibilities.
Source: SAP system
Scope: Obtained queries from the SAP system of all employees with access to
critical transactions.
SAP Menu Path:
SUIM
1) SD Object: V_VBAK_VKO Sales Document:
Authorization for Sales Organization (Sales Area)
Definition:
Determines which activities are allowed in specified sales areas for
the maintenance of sales document types in SD. You must also
maintain the authorization object that allows users to work with
different sales document types.
Defined Fields:
You can specify values for the following fields:
- Sales Organization
- Distribution Channel
- Division
- Activities
Values Activity
01 Add or Create
24 Archive & Delete
25 Retrieve from Archive
* All Activities
2) SD Object: V_VBAK_AAT Sales Document:
Authorization for Sales Document Types
Definition:
Defined Fields:
Sales Document Type
- Activities
The possible values you can enter for activities are predefined.
They consist of:
Values Activity
01 Add or Create
02 Change
03 Display
06 Delete
24 Archive & Delete
25 Retrieve from Archive
* All Activities
Procedures:
1. Check all authorizations & profiles linked to the critical authorization objects.
2. Review the individual's established user role to ensure access is required to
complete job responsibilities based on job title and department.
Test 20 - Access Test for Test Billing
________________________________________________________________________
_____
Purpose: To ensure that individuals who have access to billing process are current
employees and have the required access to perform their current job
responsibilities.
Source: SAP system
Scope: Obtained queries from the SAP system of all employees with access to
critical transactions.
SAP Menu Path:
SUIM
1) SD Object: V_VBRK_VKO Billing: Authorization for
Sales Organizations
Definition:
Determines which activities are allowed for the maintenance of Billing
Types in SD. You must also maintain the authorization object that allows
users to maintain billing types in specified sales organization.
Defined Fields:
You can specify values for the following fields:
- Billing Type
- Activities
The possible values you can enter for activities are predefined. They
consist of:
Values Activity
01 Add or Create
02 Change
03 Display
04 Print, Maintain Output
19 Process Collective Invoices
24 Archive & Delete
25 Retrieve from Archive
* All Activities
2) SD Object: V_VBAK_FKA Billing: Authorization for Billing
Types
Definition:
Determines which activities are allowed in specified sales organizations
for the maintenance of Billing Types in SD. You must also maintain the
authorization object that allows users to work with different Billing Types.
Defined Fields:
You can specify values for the following fields:
- Sales Organization
- Activities
The possible values you can enter for activities are predefined. They
consist of:
Values Activity
01 Add or Create
02 Change
03 Display
04 Print, Maintain Output
19 Process Collective Invoices
24 Archive & Delete
25 Retrieve from Archive
* All Activities
Procedures:
1. Check all authorizations & profiles linked to the critical authorization
objects.
2. Review the individual's established user role to ensure access is required to
complete job responsibilities based on job title and department.
Test 21 - Access Test for Incoming Cash
________________________________________________________________________
_____
Purpose: To ensure that individuals who have access to incoming cash are current
employees and have the required access to perform their current job
responsibilities.
Source: SAP system
Scope: Obtained queries from the SAP system of all employees with access to
critical transactions.
SAP Menu Path:
SUIM
FI OBJECT: F_BKPF_BUK Accounting Document: Authorization
for Company Code
Definition:
Using this authorization object, you determine which company code
documents can be processed. An employee can only call up the functions
for posting if he/she has this authorization in at least the company code.
Defined Fields:
The object consists of the "Company Code." You take the possible input
values for the "Activity" field from table TACT2.
Activity
01 Create
02 Change
Procedures:
1. Check all authorizations & profiles linked to the critical authorization objects.
2. Review the individual's established user role to ensure access is required to
complete job responsibilities based on job title and department.
Test 22 - Access Test for Segregation of Duties
________________________________________________________________________
_____
Purpose: To ensure that the Company has properly segregated each individuals
access in each critical transactions.
Source: SAP system
Scope: All access test in each critical function
Summary of Test:
Process Sales Orders:
User Name
xxxxxxx (Position)
xxxxxxx (Position)
Update Customer Master File in SD: Review Customer
Master File:
User Name
xxxxxxx (Position)
xxxxxxx (Position)
Change Prices: Review Price Edit
Report:
User Name
xxxxxxx (Position)
xxxxxxx (Position)
Invoice Customers:
User Name
xxxxxxx (Position)
xxxxxxx (Position)
Process returns:
User Name
xxxxxxx (Position)
xxxxxxx (Position)
Credit Master File:
User Name
xxxxxxx (Position)
xxxxxxx (Position)
Test 23 - Access Test for Goods Movement
________________________________________________________________________
_____
Purpose: To ensure that individuals who have access to shippings (including
delivery) and receiving are current employees and have the required
access to perform their current job responsibilities.
Source: SAP system
Scope: Obtained queries from the SAP system of all employees with access to
critical transactions.
SAP Menu Path:
SUIM
1) MM Object: M_MSEG_WWA Goods Movement: Plant
Definition:
With this authorization object, it is possible to restrict the maintenance of
goods movements via the plant.
Defined Fields:
You can specify values for the following fields:
- Plant
- Activities
The possible values you can enter for activities are predefined. They
consist of:
Values Activity
01 Add or Create
02 Change
03 Display
04 Print, Maintain Output
* All Activities
2) MM Object: M_MSEG_BWA Goods Movement: Movement
Type
Definition:
With this authorization object it is possible to restrict the maintenance of
goods movements via the movement type.
Defined Fields:
You can specify values for the following fields:
- Sales Organization
- Activities
The possible values you can enter for activities are predefined. They
consist of:
Values Activity
01 Add or Create
02 Change
03 Display
04 Print, Maintain Output
* All Activities
3) SD Object: V_LIKP_VST Delivery: Authorization for Shipping
Point
Note: Shipping Address and Customer Info. Resides within
the Customer Master Data.
Definition:
Determines which activities are allowed for the maintenance of the
shipping points that are used for delivery processing in SD.
Defined Fields:
You can specify values for the following fields:
- Shipping Point
- Activities
The possible values you can enter for activities are predefined. They
consist of:
Values Activity
01 Add or Create
02 Change
03 Display
06 Delete
18 Process Deliveries Collectively
24 Archive & Delete
25 Retrieve from Archive
* All Activities
Procedures:
1. Check all authorizations & profiles linked to the critical authorization objects.
2. Review the individual's established user role to ensure access is required to
complete job responsibilities based on job title and department.
Test 24 - Access Test For Credit Master File
________________________________________________________________________
_____
Purpose: To ensure that individuals who have access to credit master file are current
employees and have the required access to perform their current job
responsibilities.
Source: SAP system
Scope: Obtained queries from the SAP system of all employees with access to
critical transactions.
SAP Menu Path:
SUIM
Note: Within SAP if you perform a transaction which directly effects
another area you will need change access for that area. For example,
the person who has the authority to block and unblock sales orders
based on the customers exceeding their credit limits and/or for being
past due will also need change access for sales orders. However, keep
in mind that they only need change & display access and do not need
create, delete, *, etc.
1) FI Object: F_KNKA_MAN Credit Management: General
Authorization to Maintain
Definition:
This object controls the authorizations for maintaining the control area-
related data for a customer limit.
Defined Fields:
Activities
01 Create
02 Change
2) FI Object: F_KNKA_KKB Credit Management: Authorization
for Credit Control - primary
Definition:
This object controls the authorizations for maintaining the control area-
related data for a customer limit. At this level you define whether a user is
allowed to edit control area-related data for a customer credit limit.
Defined Fields:
Activities
01 Create
02 Change
3) FI Object: K_KNKA_AEN Credit Management: Change
Authorization for Certain Fields
Definition:
Using this authorization object, you can define a change authorization
fields you selected in the credit management master record. Only the
employee who was assigned this authorization can change these fields.
Note: This authorization is optional. You therefore do not have to
assign this authorization if no fields should be especially protected
against changes. The contents of a protected field are still displayed
to everyone. This authorization is not checked when creating. This
authorization applies to all credit control areas.
Defined Fields:
Activities
01 Create
02 Change
4) SD Object: V_KNKK_FRE Credit Limit: Processing of SD
Documents
Definition:
Enables you to restrict user access in the area of credit management.
Credit representatives and managers carry out, for example, the following
tasks:
- Releasing credit sensitive documents
- Rejecting credit
- Forwarding credit requests to other credit representatives or managers
- Initiating another check
In order to carryout these tasks in sales, shipping, & billing documents, the
credit representative or manager must have the appropriate authorization.
The field are listed below. In addition, you must also maintain
V_VBUK_FRE (controls the document value groups).
Defined Fields:
You can specify values for the following fields:
- Credit Representative Group - Specifies the group to which the credit
representative or manager is assigned
- Credit Limit Used In % - Specifies the maximum amount of credit limit
used by a particular customer (relationship between credit used & credit
limit in percentages). If the customer exceeds this limit, the credit
representative cannot process the document.
- Credit Control Area - Specifies to which area the user is assigned.
- Activities -
The possible values you can enter for activities are predefined. They
consist of:
Activity
03 Display
23 Maintain Environment
* All Activities
5) SD Object: V_VBUK_FRE Credit Document Value Class:
Processing of SD Documents
Definition:
Enables you to restrict the value of Credit Holds (Blocked sales orders and
deliveries) that a credit representative or manager may process. In
addition, you must also maintain V_KNKK_FRE (controls authorizations
by credit control area, credit representative group, risk category, and % of
credit limit used).
Defined Fields:
Document Values - Specifies ranges of document value, document value
class, he or she may process sales or delivery documents up to a specified
range.
Activities
03 Display
23 Maintain Environment
* All Activities
Each authorization and profile within the critical Object must
be tested. You may find some of the authorizations and
profiles are empty, which means that authorizations and
profiles are not used by the Company.
Procedures:
1. Check all authorizations & profiles linked to the critical authorization objects.
2. Review the individual's established user role to ensure access is required to complete
job responsibilities based on job title and department.
Pricing Fundamentals
1. To display customer master records
Logistics - Sales and Distribution – Master Data – Business Partners – Sold-to
Party – Display – Display Centrally
2. To display material master records
Logistics – Sales and Distribution – Master Data – Products – Material –
Other Material - Display
3. To create a sales order
Logistics – Sales and Distribution – Sales – Order - Create
4. To create a material price condition record for material when sold by your sales
organization and distribution channel
Logistics – Sales and Distribution – Master Data – Conditions – Price –
Material Price - Create
5. To display the pricing conditions for the order item and list the gross price
determined automatically during pricing
Select the line item and then use the following menu path:
Goto – Item - Conditions
6. To create a customer-specific discount record with scale values for a customer
when they purchase goods from your sales area
Logistics – Sales and Distribution – Master Data – Conditions –
Discounts/Surcharges – Customer – Create
To enter the scale values, select the customer line and click on:
Goto - Scales
7. To display the pricing conditions for the order item and list all those determined
automatically during pricing
Select the line item and then use the menu path:
Goto – Item - Conditions
8. To display the configuration settings for conditions type ? in Customizing. To
determine what calculation type and scale basis are assigned to this condition
type.
Tools – Business Engineer – Customizing – Implement.Project – SAP
Reference IMG – Sales and Distribution – Basic Functions – Pricing – Pricing
Control – Define Condition Types
Condition Techniques In Pricing
1. To change a customer-specific price condition for a customer by entering a
condition exclusion for net price in the condition record.
Logistics – Sales/Distribution – Master Data – Conditions – Prices –
Customer-Specific – Change
2. To view pricing analysis for an order
Select a line item and then use the following menu path:
Item – Pricing – Edit – Analysis
3. From the customer purchase order, create a standard sales order
Branch to the pricing screen for the item and manually add a quantity discount
and you must pick a condition type:
Item – Pricing – Edit – New Entries
To activate the condition by clicking on the (Enter) button
4. Create a delivery for the order, pick completely and post goods issue
Logistics – Sales/Distribution – Shipping –Delivery – Create
5. Create an invoice for the delivery
Logistic – Sales/Distribution – Billing – Billing Document – Create
6. While viewing the invoice, examine the pricing details and determine what
conditions were used to arrive at the net price.
Select the line item and click on the (Pricing) button.
7. View the Pricing Type Field in the IMG.
Tools – Business Engineer – Customizing – Implement.Projects – SAP
Reference IMG – Sales and Distribution – Billing – Billing Documents –
Maintain Copying Control for Billing Documents.
Choose “Copying Control: Delivery Slip to Billing Documents”.
Select the billing documents
Select Item Category and click on the (Details) button
Pricing Configuration
1. Determine the value of the Customer Pricing Procedure field found on the Sales
View of the master record
Logistics – Sales/Distribution – Master Data – Business Partners – Sold-to
party – Display – Display
Select the Sales View and Click on the (Enter) button
The field Customer Pricing Procedure has a value of ?
2. Determine Sales document types
Tools – Business Engineer – Customizing – Implement.Projects – SAP
Reference IMG – Sales and Distribution – Sales – Sales Documents – Sales
Document Header – Define Sales Document Types
Select document type and click on (Details) button
3. Determine what pricing procedure does the system determine if you create a
standard order
Select the following:
Sales organization
Distribution channel
Division
Document pricing procedure
Customer pricing procedure
Pricing procedure for the order
Tools – Business Engineer – Customizing – Implement.Projects – SAP
Reference IMG – Sales and Distribution – Basic Functions – Pricing –
Pricing Control – Define and Assign Pricing Procedure
Choose “Define pricing procedure determination”
Then using the (Position) button, find the correct line in the table using
the values in the selected values above
The result is the pricing procedure xxxxx
In customizing, when defining the pricing procedure, you can mark
a condition type as manual only (Man). As a result, the condition is
not automatically determined during pricing but can only be
entered manually.
4. How to configure a condition type so that it no longer can be edited manually in
the document.
Tools – Business Engineer – Customizing – Implement.Projects – SAP
Reference IMG – Sales and Distribution – Basic Functions – Pricing – Pricing
Control – Define Condition Types
Choose “Maintain condition types”
Select the xxxx condition type and click on the (Details) button
During customizing, you specify how or whether a condition type can be
edited manually in the “Changes which can be made” fields.
If the “Manual entries” field is set to D (Not possible to process manually),
then the condition type cannot be manually edited in the sales document.
5. Determine which condition table does a certain access sequence use
Tools – Business Engineer – Customizing – Implement.Projects – SAP
Reference IMG – Sales and Distribution – Basic Functions – Pricing – Pricing
Control – Define Access Sequences
Choose “ Maintain access sequences”
Select the xxxx access sequence and click on the (Accesses ) button
The result is the Access Sequence xxxx uses condition tables x,x, and x
To determine the difference in the different access sequence
Select access x and click on the (Fields) button to view the document
fields. Then do the same for the other access y
6. Create and Save a new condition table named xxx.
Tools – Business Engineer – Customizing – Implement.Projects – SAP
Reference IMG – Sales and Distribution – Basic Functions – Pricing – Pricing
Control – Define Price Dependencies ( Condition Tables)
Choose “Create Condition Tables”
Enter xxx in the Table field and the condition table number created
Select “with validity period”
Enter a description
Access Sequence: Create and Save a new access sequence Zxxx that includes the new
condition table Yxxx.
Tools – Business Engineer – Customizing – Implement.Projects – SAP
Reference IMG – Sales and Distribution – Basic Functions – Pricing – Pricing
Control – Define Access Sequences
Choose “Maintain access Sequences”
Click on the (New Entries) button
Enter access sequence Zxxx and a description
Click on the (Enter) button, then click on the green arrow button
Select your access sequence and click on the (Accesses) button
Click on the (New Entries) button
Enter access number xx and table Yxxx
7. Create a new Customer Pricing Procedure value.
Tools – Business Engineer – Customizing – Implement.Projects – SAP
Reference IMG – Sales and Distribution – Basic Functions – Pricing – Pricing
Control – Define and Assign Pricing Procedures
Choose “Define Customer Determination Procedure”
Click on the (New Entries) button
On the next screen, enter your Customer Pricing Procedure value and a
description
8. Changing the customer to use the new pricing procedure
Logistics – Sales and Distribution – Master Data – Business Partners – Sold-to
Party – Change
Enter the number for the Customer and the default Sales Area
Select the Sales view and click on the (Enter) button
Change the customer pricing procedure field to the new value.
9. Condition Records, Create and Save a surcharge condition record
Logistics – Sales and Distribution – Master Data – Conditions –
Discounts/Surcharges – Others – Create
Enter condition type xxxx and click on the (Enter) button
Enter the appropriate values, then save the condition record
Special Functions
1. It is important that only one of the two possible freight conditions is used on an
order. One way to accomplish this is by using exclusion groups.
Tools – Business Engineer – Customizing – Implement.Projects – SAP
Reference IMG – Sales and Distribution – Basic Functions – Pricing – Pricing
Control – Condition Exclusion – Condition Exclusion For Groups Of
Conditions
Choose “Define conditions exclusion groups”
Use the (New Entries) button to add exclusion group xxxx and xxxx
2. Assign condition type yyyy to exclusion group xxxx
Tools – Business Engineer – Customizing – Implement.Projects – SAP
Reference IMG – Sales and Distribution – Basic Functions – Pricing – Pricing
Control – Condition Exclusion – Condition Exclusion For Groups Of
Conditions
Choose “Assign condition types to the exclusion groups”
Use the (New Entries) button to add assignments of conditions type yyyy to
exclusion group xxxx
3. Assign the exclusion groups to pricing procedure
Tools – Business Engineer – Customizing – Implement.Projects – SAP
Reference IMG – Sales and Distribution – Basic Functions – Pricing – Pricing
Control – Condition Exclusion – Condition Exclusion For Groups Of
Conditions
Choose “Maintain condition exclusion for pricing procedures”
Double-click on the pricing procedure xxxx. Click on (New Entries) button to
add the necessary entries. Use a sequence number of xx, a condition
exclusion procedure of D, an exclusion group value of xxx
Special Condition Types
1. If you require that material x not be sold for less than a net price of $$$ for the
next three months. Create and save a minimum price condition record for this
material with a condition type zzzz
Logistics – Sales and Distribution – Master Data – Pricing – Prices – Others –
Create
Enter condition type zzzz and click on the (Enter) button
2. Assignment of a customer to a certain buying group customer hierarchy under a
certain division
Logistics – Sales and Distribution – Master Data – Business Partners –
Customer Hierarchy – Change
Enter Customer hierarchy category z and click on the (Execute) button
Click on the (Create Assignment) button and enter the data of
Hierarchy Node
Sales Area
Higher Level Hierarchy
Higher Level Sales Area
Click on the (Copy) button and this customer is assigned to the
division
Agreements
1. Create and save a promotion
Logistics – Sales and Distribution – Master Data – Agreements – Promotion –
Create
2. Create a sales deal with reference to the promotion
Logistics – Sales and Distribution – Master Data – Agreements – Sales Deal –
Create
3. Sales deal restricted to specific customers.
Logistics – Sales and Distribution – Master Data – Agreements – Sales Deal –
Change
4. Create a delivery for the order
Logistics – Sales and Distribution – Shipping – Delivery – Create Delivery –
Save and Subsequent Functions – Transfer Order
Enter warehouse
Save the Transfer Order
Logistic – Sales and Distribution – Shipping – Delivery – Change
Enter the delivery number and click on the (Post Goods Issue)
5. Create an Invoice for the delivery
Logistics – Sales and Distribution – Billing – Billing Document – Create
Enter the delivery document number and click on the (Execute) button
Rebates
1. On the Billing view of the customer master record, the Rebates field should be
marked
2. Create a Material rebate agreement for a customer
Logistics – Sales and Distribution – Master Data – Agreements – Rebate
Agreements – Create
Enter the appropriate values
4.0 Reports
RFDKLI10 Search for customers without credit limits
RFDKLI20 Restructure credit limits of selected credit monitoring areas
RFDKLI30 Brief overview of credit limit
RFDKLI40 Overview of credit limit (expanded)
RFDKLI41 Credit master sheet
RFDKLI50 Change in assets
RFDKLIAB Display changes in credit management for multiple accounts
RFDKLIAB Display changes for multiple accounts
RFKABL00 List changes in vendor master records for multiple accounts
RFSABL00 List changes in G/L account master records for multiple accounts
RFZALI00 Reports on generation of the payment proposal list
RFZALI10 Reports on generation of exception list
RFPVEB Parked invoices
RFKABL00 Vendor master record changes
RFDOPR10 Aged receivable summary
RFDOPR00 Aged receivable detail
5.0 Tables
T043G Customer/Vendor tolerance
A044 Vendor master
LFA1
LFB1 Vendor master by company code
BLFA1 General Vendor master
LFBK Vendor master bank data
LFC1 Vendor master transactions
LFM1 Vendor master record purchasing
LFM2 Vendor master purchasing data
6.0 Key IMG Settings
Credit Limit Check IMG – Sales and Distribution > Basic Functions > Credit
Processing > Define credit limit check by sales document type.
Sales Incompletion Log IMG – Sales and Distribution > Basic Functions >
Incompletion Control for Sales Documents > Define Status Groups
Run Logistics > Sales and Distribution > Sales > Environment >
Document Analysis > Incomplete documents
Availability Check Material availability
When a quote is made the system checks inventory to see if the
item is available in stock and if the item can be delivered within
the time frame requested by the customer.
The date by which sufficient quantities of an item must be
available for picking to begin the delivery process
This date is calculated by the SAP R/3 system based on the
loading, transit and pick-pack times.
Credit Check several credit control areas are assigned to risk categories. The
system will automatically check a sales order if the customer is
assigned a risk category. The order will still be accepted but the
shipment will be blocked from delivery.
"Credit control limits" can be set by sales document to one of four
settings:
D = Automatic credit check for a total of open orders,
open
deliveries, open receivables and open items.
A = Warning when credit limit has been reached
B = Error Message
C = Delivery Block
Billing Blocks Sales documents can be configured with Billing Blocks to prevent
them from being processed on the billing due list. Documents such
as Credit memos and Returns are ones that should be automatically
blocked until approved for billing.
