Dimaculangan Mariella B.

AC501

Sales AR

PART I. Conduct a research about the sales cycle and answer the following questions:

1. What is sales? When do we recognize revenue connected to sales?

Discuss its connection with other business functions, especially
accounting. (15 points)

- Sales is the activity or business of selling products or services. A sale is realized

when goods or services are exchanged for cash or claims to cash. You generally
cannot recognize revenue until a sale is realized or realizable. The accounting
department of a business monitors the financial condition of a company based on
financial statements that are compiled on a regular basis.

The marketing department is responsible for managing and developing the sales of a
business. The accounting department must work closely with the marketing
department to monitor trends in the business as well as manage the efficiency of sales
promotions initiated by the marketing company.

2. What could be the difference between a manual sales cycle and one
done through an ERP? Discuss. Site some advantages and disadvantages.
(10 points)

Basically, recording sales manually has a lot of complications like you can type wrong
values, wrong entries that can make the whole process result to a problem. Whereas
in using ERP system, its a lot more convenient because it optimizes the processes of
business, it produces an accurate and timely access to reliable information. It also has
the ability to share information between all components of the organization and it
also eliminates the unnecessary operations and data making it easier to use the
system.

But there is still disadvantages in using ERP system, the installation of it is costly.
The success depends on the skills and experience of the workforce, including
education and how to make the system work properly. The benefits of having an ERP
system are not presented immediately with the implementation of the software, they
will be evident long after the system is running.
3. Discuss the following marketing documents:

     a. Sales Quotation. (5 points)

A Sales Quotation is a non-legal binding document that is sent to a prospective client

or customer outlining your company’s product and service offerings. The Quotation
can be seen as the first step in the sales process as it is merely informational; gauging
the clients interest in your offering. In order for a Sales Quotation to be created, the
opportunity must first be created as a Sale Opportunity and added to the List of
Business Partners in Business One.

Before ordering, customers often require a sales quotation for review in their
company. You create it as a proposal of your goods and services to a customer or lead.
It does not result in any posting that alters quantities or values in inventory
management or accounting.

     b. Sales Order. How does it affect inventory levels? (5 points)

The sales order is a contractual agreement between a sales organization and a sold-to
party about delivering products or providing a service for defined prices, quantities
and times. In the sales order, functions such as pricing and printouts are available.
The system checks whether the material is available for the requested delivery date
and if necessary, transfers the requirements to materials planning. The system
generates shipping dates and points in delivery scheduling.

The document is important for planning production, creating purchase orders and
scheduling resources. A sales order will not affect the inventory levels because there
is no actual movement in the physical inventory of the business.

     c. Delivery document. How does it affect inventory levels? (5 points)

A document contains all the data required to document and control a business
process. Various documents are used in delivery processing to control the processes.
You create a delivery note to indicate that the goods have been shipped.
     d. Goods Return. (5 points)

The goods return document is used to return delivered goods to vendors or to reverse
a purchasing transaction for an item completely or partially, for example, a goods
receipt PO in SAP Business One. Due to legal stipulations, you cannot delete or make
any accounting-relevant changes to these documents. However, to return unwanted
or faulty goods, or to correct errors made when entering the above-mentioned
documents, you can create a goods return.

When you create a goods return, the goods are issued from the warehouse and the
quantities are reduced. If your company uses perpetual inventory, SAP Business One
automatically creates the relevant posting to update the inventory values as well. You
can create a goods return either based on a goods receipt PO or not. If you choose to
do the latter, and run the perpetual inventory by moving average, make sure that the
prices of the items in the independent goods return are identical to the prices posted
in the respective original purchase transaction.

     e. A/R Invoice. (5 points)

The invoice is a legally binding document. When an invoice is received, the posting is
made to the related customer accounts in the accounting system. If a delivery did not
precede the invoice and you sell the warehouse items, inventory quantities are also
updated accordingly when you issue the invoice. If you create an invoice without
reference to the delivery, the system automatically posts changes to the inventory. In
other words, if a delivery already exists for the transaction and you create an invoice
without reference to this delivery, errors can occur in inventory management because
the delivery quantity is posted twice in the system.

SAP Business One enables you to create an A/R invoice with a zero amount. You can
do this when delivering items without a charge, for example, items that are part of a
promotion or covered by a service contract.

When you create the delivery and the invoice for a sales process simultaneously, first
enter the delivery and then proceed with the invoice. However, it may be sufficient to
create the invoice, since that is what affects the inventory and the accounting
systems.

 
PART II. Watch the videos uploaded in this module. After watching,
summarize what you learned in a Word document.

The recordings discussed how the business procedure is being done in SAP Business
One. The procedure typically begins with a business request yet the teacher included
that SAP Business One offers adaptability to its clients. It permits its clients to start
the procedure either with a business quote, a business request or even straight up to
AR receipt or conveyance. The system gives its client a decision relying upon its
needs.

Simple access to data was likewise appeared in the video. The teacher showed how to
see data of the reports associated with the procedure. One of these is the relationship
map. It sums up the business procedure utilizing a stream outline. The relationship
map, data alternate ways, and even graphical outlines for formal reports can be
effortlessly gotten to and is created quickly which makes it simple for the client to
track and control the procedure.

I have figured out how complex the business procedure is a direct result of its
different advances that must be constantly associated and accommodated. Beneficial
thing that SAP Business One can coordinate all the procedures and make it
undeniably progressively simple to do and control the entire procedure.