Consignment Sales Process Sales Orders.doc

BUSINESS PROCESS 10 CONSIGNMENT SALES SUB PROCESS 10 1 Process sales orders OBJECTIVETo process sales orders for Consignment customers RisksFin Pty Ops Pty Control objectivesConsiderationsSuggested proceduresRef GLOBE AUDIT PROGRAMME Consignment Sales Process Sales Order page 1 of 5 1 Consignment sales orders are raised in error Company personnel raise consignment sales orders in error tying up stock and possible not fulfilling customer needs LowMedThe ability to raise consignment sales orders is restricted to relecompanyt personnel Only designated personnel can raise consignment sales orders and other associated transactions Consignment sales are subject to management review Consignment sales orders are subject to independent management review For Company the key order types for Consignment Sales are KE KR Credit limit check Screen sequence AU sales order Incompletion procedure Document pricing procedure Delivery type Billing type Review which roles users can raise and maintain Consignment Orders Establish which can use transactions VA01 Create Sales Order VA02 Change Sales Order O051a BUSINESS PROCESS 10 CONSIGNMENT SALES SUB PROCESS 10 1 Process sales orders OBJECTIVETo process sales orders for Consignment customers RisksFin Pty Ops Pty Control objectivesConsiderationsSuggested proceduresRef GLOBE AUDIT PROGRAMME Consignment Sales Process Sales Order page 2 of 5 Check who can process for the relecompanyt sales document types for Consignment Sales authorisation object V VBAK AAT Establish what checks management carry out on Consignment Sales 2 Stock sold to customers that are not acceptable to Company Sales are made to customers with whom either Company does no wish to trade or for whom Company has yet to determine whether to trade with them LowMedAll customers should be registered in SAP Sales cannot be made to a customer until the customer is already set up in SAP Amendments to customer details are authorised Changes to customer records are subject to management review SAP will not allow sales orders to be recorded without a pre existing customer record For Consignment Sales from Company Companys there may be manual documentation and procedures so SAP controls may be bypassed Establish whether documented procedures exist stating the process for registering new customers If so review the procedures for appropriateness Establish whether Consignment customers are handled separately from standard customers Do Company use a separate Distribution Channel or Account Group If so determine which roles users can maintain Consignment customer details Determine whether any of the above roles users can enter or maintain sales orders deliveries or billing details Establish whether O052a BUSINESS PROCESS 10 CONSIGNMENT SALES SUB PROCESS 10 1 Process sales orders OBJECTIVETo process sales orders for Consignment customers RisksFin Pty Ops Pty Control objectivesConsiderationsSuggested proceduresRef GLOBE AUDIT PROGRAMME Consignment Sales Process Sales Order page 3 of 5 management reviews are undertaken for changes to Consignment customers and whether the reviews are appropriate Establish how Company will ensure that Company Company sales will not be made to customers who are not already set up on SAP Determine whether these controls are adequate 3 Consignment orders are incorrect Either the details given to Customer Services for entry to SAP are incorrect or the details are entered incorrectly resulting in incorrect stock demands Med E Sale s HighMandatory fields are defined for the consignment documents Key fields on the material request should be mandatory to ensure that they are completed before the request can be saved Validation of key details on the request Key details on the material request are validated against the customer order Also materials requested should be validated against agreed company salesman contract SAP automatically validates references to other data in SAP such as customer number and material numbers Review the Incompletion Procedures for Consignment Sales document types For each document type check which Incompletion Procedure is assigned Repeat for line items and schedule lines at IMG Sales and Distribution Sales Sales Documents Sales Document Item Define Item Categories and IMG Sales and Distribution Sales Sales Documents Schedule Lines Define Schedule Line Categories Review the Incompletion Procedure at IMG Sales and Distribution Basic Functions O053a BUSINESS PROCESS 10 CONSIGNMENT SALES SUB PROCESS 10 1 Process sales orders OBJECTIVETo process sales orders for Consignment customers RisksFin Pty Ops Pty Control objectivesConsiderationsSuggested proceduresRef GLOBE AUDIT PROGRAMME Consignment Sales Process Sales Order page 4 of 5 Log of Incomplete Items Define Incompletion Procedures Check fields required and warnings for each level are appropriate Establish whether management regularly review SAP for incomplete sales documents Report RVAUFERR Corrections can be made directly from this report if the user role is given the appropriate access If a separate Distribution Channel differentiates Consignment Sales establish who sets up materials for use in the Consignment Sales channel Does this provide adequate segregation of consignment related materials from non consignment materials 4 Orders processed for customers with insufficient credit Third party company or consignment stores may not submit the necessary documentation to meet all Med V Deb tors MedOrders entered on SAP are subject to appropriate credit checks All consignment sales orders entered to SAP are subject to appropriate credit checking and are blocked if credit is Company Companys may be making sales without access to SAP and must be able to check credit balances for customers at delivery Establish how Company will handle credit checks by Company Companys before providing goods to customers Determine whether the procedures are adequate O054a BUSINESS PROCESS 10 CONSIGNMENT SALES SUB PROCESS 10 1 Process sales orders OBJECTIVETo process sales orders for Consignment customers RisksFin Pty Ops Pty Control objectivesConsiderationsSuggested proceduresRef GLOBE AUDIT PROGRAMME Consignment Sales Process Sales Order page 5 of 5 the requisite Company credit cr