PrEUIS - Week 1 - Lesson 2 Business Processes PDF

Lesson 2: Business Processes or Transaction Cycles Overview ▪ Inventory to Deliver ▪ Plan to Produce ▪ Hire to Retire ▪ Order to Cash ▪ Procure to Pay 2  ▪ Record to Report ▪ Close, Consolidate and...

Lesson 2: Business Processes or Transaction Cycles Overview ▪ Inventory to Deliver ▪ Plan to Produce ▪ Hire to Retire ▪ Order to Cash ▪ Procure to Pay 2  ▪ Record to Report ▪ Close, Consolidate and Report ▪ Acquire to Dispose The procure to pay process is a term used to describe the entire process of purchasing goods or services from a supplier and paying for them. 8 This includes: a. Identifying the need for goods or services b. Supplier selection c. Purchase order creation d. Invoice receipt and verification 9 e. Invoice approval for payment f. Payment of the invoice g. Record-keeping and reporting 10 The inventory to deliver business process involves managing the flow of goods from receipt into a warehouse or distribution center through to delivery to the customer. 11 This includes: a. Define and manage warehouse operations b. Process inbound goods c. Manage inventory quality d. Maintain inventory levels 12 e. Manage inventory costs f. Record and control costs g. Process outbound goods h. Manage freight and transportation i. Control vendor managed inventory and consignment inventory j. Analyze warehouse performance 13 The term plan to produce is used to describe a collection of business processes that an organization implements to support the planning and execution of the production process. 14 Connection 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 15 This includes: a. Defining production strategies b. Planning production operations c. Running production operations d. Outsourcing production orders - this can connect to the Procure to Pay process e. Control production quality f. Track production costs 16 The acquire-to-dispose process involves managing the lifecycle of both owned and leased assets from acquisition to disposal. This process includes the acquisition, deployment, maintenance, and eventual disposal of assets such as equipment, vehicles, and property. 17 This includes: a. Planning and budgeting of assets b. Acquisition of the assets c. Managing internal assets - including tracking asset usage, ensuring the assets and optimizing asset performance. d. Managing and reporting on asset financials - includes depreciation, depletion e. Repair and maintenance of internal assets f. Retiring and disposal of assets 18 The record to report (R2R) process is sometimes referred to as the financial recording and close process. The R2R process involves the collection, analysis, and reporting of financial data to make sure that the company's financial statements accurately reflect its financial performance. 19 This includes: a. Define the ledger and currency policies b. Manage budgets c. Maintain and manage cash and bank transactions d. Record financial transactions 20 e. Close financial periods f. Report and analyze financial and cash flow g. Comply with tax, audit, and regulatory requirements h. Manage fund accounting 21 Close, consolidate and report is the process by which organizations accumulate and generate critical information that both internal and external parties use to make strategic decisions and measure success. 22 Consolidation and close is the process of collecting and combining data from different activities, departments, or business activities so that they may appear in financial statements like the income statement, balance sheet & cash flow statement. 23 This takes place at the end of an accounting period: the end of the month, end of the quarter, end of the year (either calendar or fiscal year). 24  “ Your positive action combined with positive thinking results in success -Shiv Khera 41 42