Business Processes 101
13 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the purpose of the record to report (R2R) process?

  • To enhance product development and innovation
  • To manage human resources and employee performance
  • To collect, analyze, and report financial data (correct)
  • To define sales strategies and market trends
  • Which of the following is NOT a step in the record to report (R2R) process?

  • Comply with tax, audit, and regulatory requirements
  • Close financial periods
  • Manage customer relationships (correct)
  • Define ledger and currency policies
  • At what point does the consolidation and close process typically occur?

  • During financial audits
  • At the end of an accounting period (correct)
  • At the beginning of the fiscal year
  • In the budgeting process
  • What type of information is generated through the consolidation and close process?

    <p>Critical financial information for decision-making</p> Signup and view all the answers

    Which statement best describes fund accounting management?

    <p>It involves tracking resources that have specific restrictions.</p> Signup and view all the answers

    What does the procure to pay process primarily involve?

    <p>Purchasing goods or services and paying for them</p> Signup and view all the answers

    Which step is not part of the inventory to deliver process?

    <p>Supplier selection</p> Signup and view all the answers

    Which of the following describes the plan to produce process?

    <p>Supporting the planning and execution of production</p> Signup and view all the answers

    What is the first step in the acquire-to-dispose process?

    <p>Planning and budgeting of assets</p> Signup and view all the answers

    Which function is part of the record to report cycle?

    <p>Recording and reporting on asset financials</p> Signup and view all the answers

    In which process does the outsourcing of production orders connect?

    <p>Plan to produce</p> Signup and view all the answers

    What is a primary focus of the inventory to deliver process?

    <p>Analyzing warehouse performance</p> Signup and view all the answers

    Which of the following is not involved in the procure to pay process?

    <p>Running production operations</p> Signup and view all the answers

    Study Notes

    Business Processes or Transaction Cycles

    • Inventory to Deliver, Plan to Produce, Hire to Retire, Order to Cash, Procure to Pay, Record to Report, Close, Consolidate and Report, Acquire to Dispose are some examples of business processes.

    Procure to Pay

    • It describes the entire process from purchasing goods/services from suppliers to paying for them.
    • Includes:
      • Identifying the need for goods or services
      • Supplier selection
      • Purchase order creation
      • Invoice receipt and verification
      • Invoice approval for payment
      • Payment of the invoice
      • Record-keeping and reporting

    Inventory to Deliver

    • Managing goods flow from warehouse/distribution center receipt to delivery to the customer.
    • Includes:
      • Defining and managing warehouse operations
      • Processing inbound goods
      • Managing inventory quality
      • Maintaining inventory levels
      • Managing inventory costs
      • Recording and controlling costs
      • Processing outbound goods
      • Managing freight and transportation
      • Controlling vendor-managed inventory and consignment inventory
      • Analyzing warehouse performance

    Plan to Produce

    • A group of processes supporting planning and execution of production.
    • Connects to Inventory to Deliver:
      • Inventory to Deliver → Picking of Raw Materials
      • Plan to produce → Production Process
      • Inventory to Deliver (again) → Put-away of finished goods
    • Includes:
      • Defining production strategies
      • Planning production operations
      • Running production operations
      • Outsourcing production orders - can connect to Procure to Pay
      • Controlling production quality
      • Tracking production costs

    Acquire to Dispose

    • Managing owned and leased assets from acquisition to disposal.
    • Includes:
      • Planning and Budgeting of assets
      • Acquisition of the assets
      • Managing internal assets - including tracking asset usage, ensuring the assets and optimizing asset performance.
      • Managing and reporting on asset financials - includes depreciation, depletion
      • Repair and maintenance of internal assets
      • Retiring and disposal of assets

    Record to Report (R2R)

    • Also called the financial recording and close process.
    • Involves collecting, analyzing, and reporting financial data to reflect company’s financial performance accurately.
    • Includes:
      • Defining the ledger and currency policies
      • Managing budgets
      • Maintaining and managing cash and bank transactions
      • Recording financial transactions
      • Closing financial periods
      • Reporting and analyzing financial and cash flow
      • Complying with tax, audit, and regulatory requirements
      • Managing fund accounting

    Close, Consolidate and Report

    • Accrues and generates key info for internal/external parties to make strategic decisions and measure success.

    Consolidation and Close

    • Collecting and combining data from different activities, departments, or business activities so they are reflected in financial statements such as income statement, balance sheet, and cash flow statement.
    • Takes place at the end of an accounting period: end of the month, end of the quarter, end of the year (either calendar or fiscal year).

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Description

    Test your knowledge on various business processes including Procure to Pay and Inventory to Deliver. This quiz covers the key steps involved in managing procurement and inventory flow, essential for effective operations in any business. Assess your understanding of these critical cycles in business management.

    More Like This

    Use Quizgecko on...
    Browser
    Browser