ConsignmentSalesAccounting

1、business process: sub-process: objectiverisks10. consignment sales 10.4 sales accountingto account for consignment sales transactionsfinopscontrol objectivesconsiderationssuggested proceduresref.ptypty1. company raise inaccurate bill/invoice. nestl écompany salesman raise inaccurate bill/invoic

2、e (pro-forma) manually through a bill book or through the printer attached to the laptop (local solution).medmedmanagement checks on billsc,e,raised manually by companyapersonnel.(salewhere company personnels)raise bills manually,management validate the billsbased on consignment issuesentered to sap

3、.management monitor stockdiscrepancies for companys.management regularly monitordiscrepancies between physicalstock on companys andexpected stock based ontransfers and sales.sap invoices derived from thesales order.the bills raised in sap arederived directly from theconsignment issues entered onsap.

4、establish how the companyo201apersonnel will raise the manualbills. determine whetheradequate checks are in placeto ensure that the amountbilled is correct.determine whether the bills arevalidated when they aresubsequently entered to sap.establish how discrepanciesare handled.so as to ensure thatcus

5、tomer s invoice amountsare calculated accurately.review the copy control forpricing img > sales anddistribution > billing > billingdocuments > maintaincopying control for billingdocuments).choose copy control: salesdocuments to billingdocuments and deliverydocument to billing document.se

6、lect the appropriatesource/target combination.select the item level detail.choose the appropriate itemcategories.check that thebilling quantity fields areglobe audit programme:consignment sales, sales accountingpage 1 of 6business process: sub-process: objectiverisks10. consignment sales 10.4 sales

7、accountingto account for consignment sales transactionsfinopscontrol objectivesconsiderationssuggested proceduresref.ptypty2. fail to bill the customer for company sales.company salesman fails to bill the customer or does not pass transactions to customer service accounts enter to sap or customer se

8、rvices fail to enter the bill.the consignment issue is entered but the bill is not raised and sent to the customer.medhighcompleteness checks onc,emanual billing documents.(salemanagement carry outs)completeness checks on manualbilling documents.bills are automaticallygenerated from consignmentissue

9、s.sap is configured to generatethe bill directly from theconsignment issue entered tosap.monitor consignment issuesdue for billing in sap.management review sap forconfirmed issues that have yetto be invoiced and follow-up latebilling.configured correctly.keysales document type for nestléis ke c

10、onsignment issue.establish what checksmanagement undertake oncompany stocks to ensureaccuracy and what proceduresexist for investigatingdiscrepancies.establish whether nestluseséo202apre-numbered invoices formanual invoicing of customers.if so, determine whether thereare adequate completenessch

11、ecks on the collation andprocessing of the manualinvoices.review the configuration forconsignment issuesdocument type ke.determine whether the billingdocument type has beenspecified and whether billgeneration automated from theissue.determine whethermanagement are regularlyreviewing sales documentsg

12、lobe audit programme:consignment sales, sales accountingpage 2 of 6business process:10.consignment salessub-process:10.4sales accountingobjectiveto account for consignment sales transactionsrisksfinops control objectivesconsiderationssuggested proceduresref.ptypty3. inaccurate invoices formedhighman

13、agement monitor stockthird party companys andadiscrepancies forconsignment stores(saleconsignment companys andinvoices raised ons)stores.consignment company andmanagement regularly monitorstore customers arefor discrepancies between stockinaccurate due to inaccuratebalances reported bysubmissions fr

14、om theconsignment companys andcustomer or incorrect entrystores and the expected stockto sap.based on transfers and sales.sap invoices derived from thesales order.the bills raised in sap arederived directly from theconsignment issues entered ondue for billing.transactionvf04 process billing duelist

15、allows management to listand select sales for billing.discuss with management howthey monitor all consignmentsales invoices on sap that areblocked for issue and takesteps to release the invoices.report rvkred02 can beused to review all sddocuments that are blocked,rvaufspe can be used toreview and r

16、elease salesdocuments to billing.so as to ensure thato203acustomer s invoice amountsare calculated accurately.review the copy control forpricing img > sales anddistribution > billing > billingdocuments > maintaincopying control for billingdocuments).choose copy control: salesdocuments to

17、 billingdocuments and deliverydocument to billing document.select the appropriatesource/target combination.globe audit programme:consignment sales, sales accountingpage 3 of 6business process: sub-process: objectiverisks10. consignment sales 10.4 sales accountingto account for consignment sales tran

18、sactionsfinopscontrol objectivesconsiderationssuggested proceduresref.ptypty4. failure to bill customers with consignmentcompanys or stores. invoices are not raised on consignment company and store customers due to the customer failing to providesap.lowmedrandom and regular checksshould be made to e

19、nsure thatthe breakdown of sales andstock are accurate.this could be undertaken in theform of an audit, undertaken bynestl éstaff.select the item level detail.choose the appropriate itemcategories.check that thebilling quantity fields areconfigured correctly.keysales document type for nestl

20、3;is ke01 consignment issue.establish what checksmanagement undertake on thestatements from consignmentcustomers to ensure accuracyof sales and stock balances.also determine whatprocedures exist forinvestigating discrepancies.establish whether audits areundertaken of consignmentstock holdings.establ

21、ish whethermanagement checkconsignment issues on sap tothe source documentation fromthe customer.establish whether audits areo204aundertaken.discuss with managementwhether there have historicallybeen issues with receivinginaccurate data from thirdglobe audit programme:consignment sales, sales accoun

22、tingpage 4 of 6business process: sub-process: objectiverisks10. consignment sales 10.4 sales accountingto account for consignment sales transactionsfinopscontrol objectivesconsiderationssuggested proceduresref.ptyptysubmissions or nestléfailingto enter to sap.5. customer credits are inaccurate

23、or inappropriate.the accounting transactions for consignment sales are not posted to the correct accounts.medmedthe ability to processc,e,consignment returns isarestricted to authorised(salepersonnel.s)only authorised personnel canprocess consignment returns onsap.credit memos are generatedautomatic

24、ally.sap is configured to generatecredit memos automatically fromvalid consignment returns.management review of returnscredited to customer.management review all returnsthat have resulted in a creditmemo.party companys andconsignment stores.establish which roles ando205ausers can processconsignment

25、returns.review access to transactions:?va01create salesorder;?va02change salesorder.review access based onauthorisation objectv_vbak_att, which allowsaccess to be restricted bydocument type (kr andkr01).check that for consignmentreturns (document type krand kr01) the bill type hasbeen defined in sap

26、.reviewrelecompanyt returns types inimg > sales and distribution >sales > sales documents >sales document header >sales document type.check that the field billingtype has been populated witha relecompanyt value.establish whether anyone isresponsible for monitoring theglobe audit progr

27、amme:consignment sales, sales accountingpage 5 of 6business process:10.consignment salessub-process:10.4sales accountingobjectiveto account for consignment sales transactionsrisksfinops control objectivesconsiderationssuggested proceduresref.ptypty6. inappropriate accounting for consignment sales.the accounting transactions for consignment sales are not posted to the correct accounts.medmedaccount determination isc,e,co