VIETNAM NATIONAL UNIVERSITY – HO CHI MINH CITY

INTERNATIONAL UNIVERSITY

SCHOOL OF INDUSTRIAL ENGINEERING & MANAGEMENT

Course Code: IS091IU

MANAGEMENT INFORMATION SYSTEMS with
ENTERPRISE RESOURCES PLANNING APPLICATION

Introduction to S4HANA _ Using Global Bike

Case Study: Financial Accounting

Student Full Name Student ID Contribution based on assigned task

Huỳnh Như Quỳnh IELSIU21372 100% (Step 1,2,3,4,5,6,7)

Hồ Thị Thảo Trân IELSIU20442 100% (Step 8, 9, 10, 11, 12, 1, Bonus)

Trương Gia Hân IELSIU21292 100% (Step 2,3,4,5,6,7, 8)

January 2024
I. Objectives
Knowledge
CLO1. Able to describe the key processes in the firms supported by modern ERP systems.
CLO2. Able to explain the roles of ERP systems in managing and planning resources and
information systems in the firm.
Skill
CLO3. Able to carry out actions to apply the concepts covered in the text to real-world
situations and to the running case study used in their hands-on exercises, cooperate in group
work to complete exercises.
Attitude
CLO4. Able to reason around ethical and privacy issues in information system control and
apply ethical practices.

II. Answer
Answer questions, record messages, or paste screenshots as directed throughout the FI Case
Study to the table below. Make sure the screenshots are readable.
Export the report to pdf. file and upload on the GG Forms submission link.
Grading Rubric:
- 30% completion percentage of AP
- 30% completion percentage of AR
- 40% report

Step and PIC Recording

Accounts Payable

1. Create Bank [Screenshot of the GL Account Master Data]

Account in General
Ledger
 [Answer]
1) Must we create a bank account for each of our vendors? Why or
Why not?
We must create a bank account for each of our vendors.
Because separate accounts can make tracking and managing transactions
related to specific vendors easier. This can simplify accounting and
facilitate financial reporting. Moreover, having separate accounts for each
vendor can help mitigate the risk of errors or fraud. It allows for better
control and monitoring of financial activities associated with individual
vendors.

2. Create [Screenshot of the GL Account Master Data]

Reconciliation
Account in General
Ledger

[Answer]
2) Must we create a reconciliation account for each of our business
partners? Why or Why not?
We must create a reconciliation account for each of our business partners.
Because reconciliation is intended to ensure that the actual amount spent
matches the amount shown in the account at the end of the financial
period. Partners and businesses perform periodic reconciliations to check
for errors or fraudulent activity.
3. Create Expense [Screenshot of the GL Account Master Data]
Account in General
Ledger

[Answer]
3) Must we create an Expense Account in the GL for each of our
vendors? Why or Why not?
It's not necessary to create a bank account for each vendor. Because the
same G/L account can be used for different bank accounts as they use the
same key currency, creating a bank account for each vendor would lead to
unnecessary data redundancy and complexity. It would be impractical to
manage and reconcile numerous bank accounts, especially considering
that vendors may change or have multiple bank accounts over time.

4. Create Vendor [Screenshot of the Business Partner Screen with full Basic Data]
Master Record for
Landlord

[Record]
Business Partner Number : 1003981

5. Post Transfer of [Record]

Funds to Alternate
Bank Account
 Journal Entry Number : 100000328

6. Review Transfer [Screenshot of the Entry View of the above Journal Entry]
of Funds

7. Create Invoice [Screenshot of the ]

Receipt for Rent
Expense

[Record]
Supplier Invoice Number : 5105600521/2024

8. Display and [Screenshot of the Line Items in GL screen]

Review G/L
Account Balances
and Individual
Line Items

9. Display and [Screenshot of the Supplier Balance]

Review AP
Balances and
Individual Line
Items

10. Post Payment to [Screenshot of the Entry View of the Journal Entry]
Landlord

[Record]
Journal Entry Number : 1500000209

11. Display and [Screenshot of the Supplier Balance]

Review AP
Balances and
Individual Line
Items

[Answer]
4) Compare and contrast the Supplier Balance screenshots in Step 9
and Step 11. Explain the difference.
​ Display and Review AP Balances:
● This usually involves viewing the overall balances related
to Accounts Payable. It provides a summarized view of the
amounts owed to suppliers or vendors. Balances could
include total outstanding payables, credit memos, and other
relevant information.
 ​ Individual Line Items:
● This refers to a detailed view of each transaction or entry
within the Accounts Payable module. Individual line items
provide a granular breakdown of specific transactions,
including invoices, payments, credit memos, and other
related activities.

When you compare the two:

● AP Balances View: It gives a holistic picture of the financial

standing regarding payables, often presenting aggregated data.
● Individual Line Items View: It provides a more detailed,
transaction-level perspective, allowing you to examine each entry
individually.

In practical terms, if you want an overview of your company's financial

liability to suppliers, you might use the AP Balances view. If you need to
investigate specific transactions or identify discrepancies, the Individual
Line Items view would be more relevant.

12. Run Financial [Screenshots of the full Balance Sheet]

Statement

[Answer]
5) Explain the balance in the Bank Account 328.
The balance in a bank account represents the amount of money that is
currently available in that account. It reflects the financial position of the
account at a specific point in time. The balance can be positive, indicating
funds available for withdrawal or use, or negative, indicating an overdraft
or a debt owed to the bank.

2 types of balances in a bank account:

​ Current Balance:
● The current balance is the total amount of money in the
account at a specific moment, considering all transactions
that have been processed up to that point. This includes
deposits, withdrawals, checks, electronic transfers, and
other transactions.
 ​ Available Balance:
● The available balance represents the amount of money that
is accessible for withdrawal or use. It takes into account
any holds, pending transactions, or checks that have not yet
cleared. The available balance provides a more real-time
view of how much money you can actually spend or
transfer.

[Answer] 6) What is the difference between the AP Postings in this FI Case

study versus the MM Case study?
AP (Accounts Payable) and SAP FI/CO (Financial Accounting and Controlling)
are related but distinct concepts within the field of accounting and finance, with
SAP FI/CO being a broader framework that encompasses AP and other financial
functions. Here are the key differences between AP and SAP FI/CO:

Accounts Payable (AP):

1. Specific Function: AP is a specific function within accounting

that deals with the management of an organization's
outstanding invoices and payments to its suppliers and vendors.
2. Focus: AP primarily focuses on the liabilities side of the balance
sheet, specifically managing and tracking the money owed to
suppliers.
3. Processes: AP processes typically include invoice verification,
purchase order matching, payment processing, and vendor
management.
4. Role: AP professionals are responsible for ensuring that the
organization pays its bills accurately and on time, and they
often interact with vendors to resolve issues.

5. Submodule in SAP FI: In SAP's Financial Accounting (FI)

module, AP is a submodule that handles accounts payable
processes, such as vendor master data, invoice processing, and
payment processing.

SAP FI/CO (Financial Accounting and Controlling):

1. Broad Framework: SAP FI/CO is a comprehensive

framework within SAP ERP (Enterprise Resource Planning)
that covers a wide range of financial and accounting functions.
2. Scope: FI/CO includes multiple submodules and
functionalities beyond AP, such as general ledger accounting,
asset accounting, cost accounting (CO), profitability analysis,
and more.
3. Integration: FI/CO integrates various financial processes,
allowing for the seamless flow of financial data between
different areas of an organization, such as accounts payable,
 accounts receivable, and controlling.
4. Management Reporting: FI/CO provides tools for financial
reporting, budgeting, and controlling to help organizations
manage their financial performance and make strategic
decisions.
5. Controlling (CO): The "CO" part of SAP FI/CO is dedicated
to controlling and includes functions related to cost and
revenue accounting, internal orders, profitability analysis, and
product costing, among others.

6. Regulatory Compliance: SAP FI/CO helps organizations

meet regulatory and financial reporting requirements by
providing features for audit and compliance.

In summary, while AP is a specific function within accounting that deals with

accounts payable and vendor-related processes, SAP FI/CO is a broader
framework within SAP ERP that covers financial accounting, reporting, and
controlling functions. AP is one of the submodules within SAP FI/CO, and
professionals working in SAP FI/CO have a wider scope of responsibilities that
extend beyond accounts payable to include other financial and controlling
activities.

7) Illustrate the transactions in this AP Case Study using T accounts

(Hint: You can try Display Journal Entries - In T-Account View
instead of Entry View)

ACCOUNT PAYABLE

1500

ACCOUNT RECEIVABLE

1500

Accounts Receivable

1. Change Terms of [Screenshot of the ]

Payment for a
Customer
[Name] (AR
Accountant)
2. Create Customer [Record]
Invoice Document Number for Invoice 1: 1800001195
Document Number for Invoice 2: 1800001197
Document Number for Invoice 3: 1800001198
Document Number for Invoice 4: 1800001199
Document Number for Invoice 5: 1800001200
Document Number for Invoice 6: 1800001201
Document Number for Invoice 7: 1800001202
[Answer]
8) What happens if Debit was chosen instead of Credit in the D/C
section?
In SAP's Financial Accounting (FI) module, if "Debit" is chosen instead
of "Credit" in the D/C section, it may impact the posting of accounting
entries. Each posting in SAP FI requires an appropriate debit/credit
indicator to ensure accurate accounting treatment.

Choosing "Debit" in the D/C section indicates that the transaction will be
posted as a debit entry, affecting debit accounts and, correspondingly,
impacting the balance sheet and income statement. On the other hand,
selecting "Credit" indicates a credit entry, affecting credit accounts and
leading to different financial implications.

The specific impact would depend on the nature of the transaction and the
accounts involved. It's critical to select the correct indicator to maintain
the accuracy of financial data.

If you encounter issues related to this selection within SAP, consulting

with a certified SAP consultant or your organization's SAP support team
would be beneficial to rectify any potential issues and ensure accurate
financial reporting.

3. Display [Screenshot of Customer Balance of Motown Bikes]

Customer Balances
[Screenshot of Customer Balance of Philly Bikes]

[Screenshot of Customer Balance of Big Apple Bikes]

[Screenshot of Customer Balance of Peachtree Bikes]

[Screenshot of Customer Balance of Windy City Bikes]

 [Answer]
9) What does the icon in the item's Clearing Status column mean?
In SAP, the clearing status refers to the state of reconciliation or
settlement of open items in financial accounting. The icon is a visual
indicator that represents whether the item has been fully or partially
cleared, or if it remains open and unreconciled.

4. Post an Incoming [Record]

Payment
Customers Journal Entry Number Journal Entry Date
Motown 1 1400000636 01/27/2024

Philly 1 1400000637 01/27/2024

Apple 1 1400000638 01/27/2024

Peachtree 1 1400000639 01/27/2024
Windy 1 1400000640 01/27/2024
5. Display [Screenshot of Customer Balance of the 5 customers]
Customer Balances

[Answer]
10) What changed compared to the Customer Balance in Step 3?
In SAP Financial Accounting - Accounts Receivable, Step 3 typically
involves the reconciliation of customer balances. Changes compared to
the customer balance in Step 3 can occur for various reasons:
● Posting of Customer Invoices: If new customer invoices were
posted during Step 3, it would increase the customer balance by
the total amount of these invoices.

● Customer Payments: Any payments received from customers

during Step 3 would decrease the customer balance, reflecting the
reduction in outstanding receivables.

6. Scenario 1 – [2 screenshots of the Balance Sheet BEFORE and AFTER Reverse

Cancel Journal Entries]
Receivable/Bill Before

After:
7. Scenario 2 – [3 screenshots of the Customer Balance BEFORE Reset Cleared Items,
Change Invoice AFTER Reset Cleared Items, and AFTER Assignment of Open Items]
Assignment Before Reset Cleared Items:
BEFORE Reset Cleared Items
 AFTER Reset Cleared Items

AFTER Assignment of Open Items

8. Scenario 3 – [2 screenshots of the Balance Sheet BEFORE and AFTER Reverse

Reset and Revers Journal Entries]
Incoming Payment Before

After

[2 screenshots of the Customer Balance BEFORE and AFTER Reset

Cleared Items]
Before:
After:

[Record]
New Document Number: 1600000179
[Answer]
11) What is the difference between scenario 2 (step 7) and scenario 3
(step 8)?
In SAP Financial Accounting - Accounts Receivable, Scenario 2 (step 7)
and Scenario 3 (step 8) typically represent distinct processes related to
accounts receivable management. The differences between the two
scenarios can be outlined as follows:

Scenario 2 (Step 7):

Scenario 2, often associated with Step 7 in the accounts receivable

 process, may involve activities related to dunning and collections. This
phase focuses on reminders and collection processes for overdue customer
invoices.
Key activities in Scenario 2 can include sending dunning letters, initiating
collection calls, and managing the escalation of unpaid invoices within the
organization's defined dunning procedures.
The main goal of Scenario 2 is to prompt customers to settle overdue
invoices and address outstanding receivables through structured dunning
and collection activities.
Scenario 3 (Step 8):

Scenario 3, commonly linked to Step 8 in the accounts receivable process,

typically centers on the management of disputed items and resolution of
customer claims or disputes.
In Scenario 3, the focus shifts from dunning and collections to addressing
customer claims, handling invoice disputes, and coordinating the
resolution of outstanding issues with customers.
Key activities in Scenario 3 may involve processing credit and debit
memos, managing customer deductions, and collaboratively addressing
and resolving any discrepancies or contested items with customers.
In summary, while Scenario 2 (Step 7) primarily deals with dunning and
collections for overdue invoices, Scenario 3 (Step 8) shifts the focus to
managing customer claims and disputes. Understanding the differences
between these scenarios is crucial for effective accounts receivable
management and maintaining healthy customer relations.

[Answer] 12) Illustrate the transactions in this AR Case Study using T accounts.
Each T account carries the debit and credit entries for a different type of
account, such as accounts receivable, cash, sales revenue, and so on.

The use and purpose of a T account is to help business owners visualize

the amounts on each individual account

Types of Account Debit Credit

Asset are what a business owns, such as cash, Increase Decrease

accounts, receivable, equipment, etc

Expenses are the cost of consuming assets. Increase Decrease

They include rent, interest, etc.

The owner’s equity represents what the owner Decrease Increase

invests in the business

Liabilities are claims against assets. These Decrease Increase

include accounts payable, wages payable,
notes payable, etc

Revenue is cash generated from business Decrease Increase

activities such as sales, dividends, services,
etc.

Rules would look like as T accounts

ASSETS

Debit to Increase (+) Credit to Decease (-)

EXPENSES

Debit to Increase (+) Credit to Decease (-)

OWNER’S EQUITY

Debit to Decease (-) Credit to Decease (-)

LIABILITIES

Debit to Decease (-) Credit to Increase (+)

REVENUE

Debit to Decease (-) Credit to Increase (+)

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