1. What are the five steps in the Sales Cycle and what Modules do they originate from?
- Sales Order : SD Module
- Deliver Note : SD Module
- Goods Issue : MM Module
- Billing Document : SD Module
- Receive Payment: FI Module
2. Of the five steps listed above, which ones generate accounting documents and what are they?
- Goods Issue: Debit COGS and Credit Inventory
- Billing Document: Debit Accounts Receivable and Credit Sales/Revenue
- Payment Receipt: Debit Cash and Credit Accounts Receivable
3. What are all the activities in the Sales Cycle?
Inquiries, Quotations, Sales Order Processing, Credit Management, Delivery Processing, Goods Issue Processing, Billing Document Processing, Incoming Payment Processing, Automated General Ledger Update
4. What is an Inquiry in the Sales Cycle?
An Inquiry is a document created in the Sales & Distribution module that represents a query from a customer or prospective customer.
5. What is a Quotation?
A Quotation is a document created in the Sales & Distribution module that records information about materials possibly desired by a customer or prospective customer. The material number, price and alternative items is usually included on a quotation.
6. What is a Sales Order?
A Sales Order is a contractual agreement between a Sales Organization and a customer concerning goods to be delivered or services rendered.
7. When a Sales Order is processed, the system automatically executes what functions?
The system automatically executes:
- Credit Checking
- Material Availability Checking
- Transfer requirements to Materials Requirements Planning (MRP)
- Shipping Point and Route Determination
8. What is a Delivery Note?
The Delivery Note is a document created in the Sales & Distribution module that initiates the shipping activities associated with delivering materials to a customer
9. What financial transaction occurs when the Delivery Note is processed?
A Delivery Note does not create a financial transaction in the General Ledger.
10. What is the purpose of a Goods Issue?
A Goods Issue is a document posted in the Materials Management module that is used as the source document for recording changes in stock levels associated with delivering materials to customers and for recording the financial impact of such transactions in the General Ledger.
11. What is a Billing Document?
A Billing Document is a document posted in the Sales & Distribution module, which supports the creation of Customer Invoices, Credit or Debit Memos, and the recording of the financial impact of these transactions in the General Ledger.
12. What accounting transaction occurs when a Billing Document is posted?
As a result of a Billing Document, integration to the Financial Accounting module occurs with the automatic creation of an Accounting Document containing the following accounting entries:
- Debit to the Customer Account and the appropriate General Ledger Reconciliation Account assigned to it.
- Credit to the appropriate General Ledger Revenue Account.