What is Management Level?

Management level is the combination of SAP ERP System & JD’s model.

Purpose of Management Level?

1. Supervision
2. Posting of Invoices
3. Reporting

Benefits of Management Level?

1. Better decision-making
2. Employee empowerment
3. Improved work environment
4. Increase retention
5. Communication
6. Enhanced employee performance
7. Increased productivity
8. Improved company performance
9. Supervise and direct employee routines

Environment of Management Level?

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 SAP ERP System Structure
1. Sales

SAP Sales and Distribution (SAP SD) is a core functional module in SAP ERP Central
Component (ECC) that allows organizations to store and manage customer- and product-
related data. Organizations use this data to manage all of the sales ordering, shipping,
billing, and invoicing of their goods and services.

2. Warehouse

A warehouse represents a physical warehousing complex and can be a physical building.

A warehouse is uniquely identified by a warehouse number. A warehouse number
represents the storage types and storage bins that are organized and managed together.

3. Logistics

In SAP, logistics refers to the module that is responsible for managing the supply chain
processes, including procurement, inventory management, production planning, and
distribution.

4. Store

SAP Store means the SAP marketplace, including the SAP online marketplace services,
described in in the Complementary Benefits Schedule serving as a platform to market
and to provide Packaged Plat- form Applications to End Users.

5. Production

SAP Production Planning (SAP PP) is the component of ERP Central Component (ECC)
that helps businesses plan the manufacturing, sale and distribution of goods.

6. Shop Floor

Shop floor is the organizational unit just below plant where actual production work takes
place or where the actual production order activities start.

7. R & D

It is a broad area that includes project control and product engineering as the core areas.
R&D also includes product compliance, product lifecycle management (PLM), portfolio
and project management, and circular economy.

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8. QC

Quality Control (QM-QC-AQC), which allows you to manage the quality control process.
For example, you can use inspection results to update quality levels; use control charts to
control characteristic values; and update vendor validations for the procurement
process.

9. Purchase

A purchase order consists of a document header and a number of items. The information
shown in the header relates to the entire purchase order For example, the terms of
payment and the delivery terms are defined in the header. A procurement type is
defined for each of the document items.

10. Operation

You use operations to describe the individual maintenance tasks to be performed. The
operation includes the time, the work center, and other controlling information for an
individual maintenance task. In the operation text you can describe how the work should
be done.

11. Admin

SAP Systems Administrators are responsible for maintaining the ongoing reliability,
performance, management, and support of SAP application environments supporting
education, research, administrative, and other activities.

12. Finance *****

SAP FI (SAP Financial Accounting) is a module in the SAP ERP system (Enterprise
Resource Planning). The SAP FI module is one of the most important and popular
components of SAP as it is used to store the financial data (balance sheets, profit & loss
accounts, etc.) of an organization.

13. Accounts *****

An account is a detailed record of all the money that a business or a person receives and
spends. In double entry bookkeeping, every debit or credit in the account is also
represented as a credit or debit somewhere else.

14. Training

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15. Business Intelligence

Also known as a decision support system (DSS), a BI system analyses current and
historical data and presents findings in easy-to-digest reports, dashboards, graphs,
charts, and maps that can be shared across the company.

16. HR

SAP HR, also known as SAP HCM (Human Capital Management), is a comprehensive
module within the SAP ERP (Enterprise Resource Planning) system that focuses on
managing and optimizing various HR processes and activities within an organization.

17. Bank / Tax

Bank Accounting in SAP is a sub-application within SAP Financial Accounting (FICO or

S/4HANA Finance). It deals with managing accounting transactions with your banks.
Further, it helps you to manage both incoming and outgoing payments for effective cash-
balance management.

A tax is a mandatory payment or charge collected by local, state, and national

governments from individuals or businesses to cover the costs of general government
services, goods, and activities.

18. Internal Audit

Internal audit refers to an independent service to evaluate an organization’s internal

controls, its corporate practices, processes, and methods. An internal audit helps in
securing compliance with the various laws applicable to an organization.

19. Marketing

SAP Marketing includes the marketing platform SAP Marketing Data Management, which
provides a single view on your customer data (accounts, contacts, interactions, target
groups). Based on this platform, you can purchase additional marketing applications that
are available individually on the price list.

20. Project

A project is defined as a sequence of tasks that must be completed to attain a certain

outcome. According to the Project Management Institute (PMI), the term Project refers
to ” to any temporary endeavor with a definite beginning and end”

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 JDs Model of Accountant (Financial, Cost, Managerial)

1. Supervise / Approval (All Transaction of all Departments)

2. Invoices (Sales, Purchase, inventory, Production, Trading, Services)

A document that a supplier creates to charge a customer for goods that the supplier
provides to that customer.

3. Post Journal Entries.

The use of Journal Entry (JE) posting in SAP FI is to take a batch, validate it for consistency,
and create FI documents and post those entries in various line item accounts needed for
subsequent business processing.

4. Manage Cost (Material, Labor, Overhead)

Cost management is the process of planning and controlling the costs associated with
running a business.

5. Manage implementing cost of business activities.

Cost management is the process of planning, budgeting, and reporting project spend in
order to keep teams on budget and overall costs reasonable.

6. Adjustment l All Official Documents

Adjustment postings are usually made at month end to ensure the financial statements
accurately display the financial results.

7. Reconciliations

Reconciliation accounts are the vehicle that links sub ledger accounts, like accounts payable,
accounts receivable, and fixed asset accounts back to the general ledger. Every sub ledger
account has to link back to a reconciliation account.

a. Internal
b. External
c. Bank
8. P & L A/c l Income Statement (Prepare & Analysis)

A profit and loss statement (P&L), also called an income statement or statement of
operations, is a financial report that shows a company's revenues, expenses and net profit or
loss over a given period of time. The time period can be of any length, but it is usually a
month, quarter or year.

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 9. B/S & Cash Flow Statement (Prepare l Analysis)

The balance sheet provides a snapshot of a company's financial condition at a given

moment, while the income statement shows a specified period's profits or losses.

Cash flow statement shows the changes in cash position of an organization for a specific
period.

10. Corporate Law, Governance, Risk Mgmt.

SAP Risk Management allows you to identify and assess risks and opportunities, determine a
response strategy, and monitor progress.

11. Budget l Forecasting l Internal Controls Mgmt.

A budget is a spending plan based on income and expenses. In other words, it's an estimate
of how much money you'll make and spend over a certain period of time, such as a month or
year.

Forecasting refers to the practice of predicting what will happen in the future by taking into
consideration events in the past and present.

Internal control is a process, affected by an entity's board of directors, management and

other personnel, designed to provide reasonable assurance: That information is reliable,
accurate and timely.

12. Project & Feasibility Reports Preparation

A feasibility report is a report that evaluates a set of proposed project paths or solutions to
determine if they are viable. The person who prepares a feasibility report evaluates the
feasibility of different solutions and then chooses their recommendation for the best
solution.

13. Investment, Financial and Business Analysis

Investment analysis involves researching and evaluating a security or an industry to predict

its future performance and determine its suitability to a specific investor.

Financial planning and analysis (FP&A) is a set of planning, forecasting, budgeting, and
analytical activities that support a company's major business decisions and overall financial
health.

A SAP business analyst is generally in charge of designing, implementing and configuring SAP
software programs and systems for businesses. They evaluate business needs and customize
SAP programs in order to perform specific functions and processes.

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 14. Audit Assurance & Reports (Top Management & Auditors)

The audit report contains all important administrative data related to the audit , including
comments, results, and the corrective/preventive actions that have been determined.

15. PIFRA l FAM l NAM l INTOSAI l AGP l AGR Laws

PIFRA stands for Project to Improve Financial Reporting and Auditing. The basic objective of
the project is to computerize the accounting and auditing system of Pakistan.

FAM: A financial Assistant management system is the software and processes used to
manage income, expenses, and assets in an organization.

International Organization of Supreme Audit Institutions: INTOSAI's mission is to support its

members in contributing effectively to the accountability of the public sector, promoting
public transparency and good governance, and fostering the economy, effectiveness and
efficiency of government programs for the benefit of all.

Adjusted Gross Profit: Adjusted gross profit is gross revenue less the direct cost of producing
this income. The direct cost of producing income is all expenses that have a one to one
relationship to producing income. This concept is like but not identical to gross profit.

Adjusted Gross Revenue: means gross revenue received by CREATIVE from sales of the
applicable product or services, less discounts, returns, and fees paid to banking
establishments solely related to conducting credit card or debit card transactions.