MIS – FINAL REVIEW

Hierarchy for summarizing each module -> FI&PP

- Organizational Data and Master Data

- Primary processes -> Transactional Data

Production Planning(PP)

- BOM&Routing:

 Single-level BOM
 Multi-Level BOM
 Variant BOM
 Component of BOM: Purchased Raw Material, Purchased Component,
Components/Modules Manufactured in-house
 Calculate Explode BOM

- Practice BOM Explosion:

Item Quantity
E 1
A 1
B 2
C 1
D 2
1 7
2 11
3 6
4 2

15.1

how many K’s are 6

needed for each A
how many E’s are 4
 needed for each A
the low-level code for If end item A level
item E is 0, then low level
code for E is 2
From the given product structure diagram, we can see that to produce:
- 1 unit of A requires 2 units of B, 1 unit of C and 3 units of D
A(1) = B(2) + C(1) + D(3)
- 1 unit of B require 2 units of E and 1 units of F
B(1) = E(2) + F(1)
- 1 unit of C require 4 units of G C(1) = G(4)
- 1 unit of D require 1 unit of H and 2 unit of I
D(1) = H(1) + I(2)
- 1 unit of H requires 1 unit of F, 1 unit of J, 2 unit of K
H(1) = F(1) + J(1) + K(2)
From the above equation:
- 1 unit of A needs 2*1*3 = 6 units of K
- At Level 1: 2 units of B needs 4 units of E -> 1 unit of A need 4 units of E

15-2:
Construct a multilevel bill of material for product Z. How many Us are needed to make each
Z? How many Ws are needed to make each Z?
- U’s are needed to make each Z
1*2 + 1*3 = 5 U’s
- W’s needed to make each Z
4*3 = 12 W’s
Therefore, 5 U’s are required to make each Z
and 12 W’s are required to make each Z

15-3:
The sequential arrangement / Assembly of One-Step step stool
- Fix 4 tips – 2 each to Bottom Leg and Top leg respectively
- Mount the Bottom Leg over the Bottom of Step stool seat
 - Mount Top Leg over the Bottom of Step stool in such a way that the Top Leg is over
the Bottom Leg and mounted over carefully to fix the screws.
- Fix the Legs with Screws tightly.

- PP Processes:

 Forecasting Factors
+ Alpha: Base/smoothing factor
+ Beta: Trend
+ Gamma: Seasonality
+ Delta: Forecast versus Actual
-> Selecting a model: Automatically and Manually: constant, seasonal, trend, seasonal
trend
We are following Make to Stock => Need to know expected sales to produce & level
production
  Sales and Operations Planning (Giống Promana)
 Linear Programming (Graphical Methods – Giống OR1)

- Practice S&OP:

IEM Garment Company manufactures men’s shirts and women’s blouses for IU Unimart.
Unimart will accept all the production supplied by IEM. The production process includes
cutting, sewing, and packaging. IEM employs 25 workers in the cutting department, 35 in the
sewing department, and 5 in the packaging department. The factory works one 8-hour shift, 5
days a week. The following table gives the time requirement and profits per unit for the two
garments

a) With the goal to maximize the profit, help IEM formulate an optimization model

b) Use graphical method to determine the weekly production schedule

Minutes per unit

Garment Cutting Sewing Packaging Unit profit ($)
Shirts 20 70 12 8.00
Blouses 60 60 4 12.00

Available time per week for cutting = 25*8*5 = 1,000 hours/week

Available time per week for sewing = 35*8*5 = 1,400 hours/week

Available time per week for packaging = 5*8*5 = 200 hours/week

Let x1 be the number of shirts to produce per week

Let x2 be the number of blouses to produce per week

Maximize Profit = 8x1 + 12x2

Subject to

1/3x1 + x2 <= 1000

7/6x1 + x2 <= 1400

1.5x1 + 1/15x2 <= 200

x1, x2 >= 0

From the graph, using corner point theory:

(0, 1000) => Profit =12000

(480, 840) => Profit = 13920

(872.73, 381.82) => Profit = 11548

(1000, 0) => Profit = 8000

=> (480, 840) is the best feasible solution

=> Conclusion

- GBI Disaggregation Example:

- Transfer PIRs to Demand Management: - Output of MRP

- MPS&MRP:
- Practice MRP calculation

MPS for Product E Par On- hand Lead Scheduled

April May June July t Inv. time Receipts
10 10 20 50 E 5 1 0
A 10 1 0
B 10 1 0
C 10 1 0
D 0 1 0
1 20 1 20 (in April)
2 20 1 20 (in May)
3 20 1 20 (in June)
4 0 1 20 (in April)
Item: E Period

Lot size: L4L LT: 1 4 5 6 7

Gross Requirements 10 10 20 50

Scheduled Receipts

Projected On Hand 5

Net Requirements 5 10 20 50

Planned Order Receipts 5 10 20 50

Planned Order Releases 5 10 20 50

Item: A Period

Lot size: L4L LT: 1 3 4 5 6

Gross Requirements 5 10 20 50

Scheduled Receipts

Projected On Hand 10 5

Net Requirements 0 5 20 50

Planned Order Receipts 5 20 50

Planned Order Releases 5 20 50

Item: B Period

Lot size: L4L LT: 1 3 4 5 6

Gross Requirements 10 30 70 50

Scheduled Receipts

Projected On Hand 10

Net Requirements 0 30 70 50

Planned Order Receipts 30 70 50

Planned Order Releases 30 70 50

==> Sum demand B at level 1 and B at level 2

Item: C Period

Lot size: L4L LT: 1 3 4 5 6

Gross Requirements 5 10 20 50

Scheduled Receipts

Projected On Hand 10 5

Net Requirements 0 5 20 50

Planned Order Receipts 5 20 50

Planned Order Releases 5 20 50

Item: D Period

Lot size: L4L LT: 1 3 4 5

Gross Requirements 10 40 100

Scheduled Receipts

Projected On Hand
Net Requirements 10 40 100

Planned Order Receipts 10 40 100

Planned Order Releases 10 40 100

Item: 1 Period

Lot size: L4L LT: 1 3 4 5 6

Gross Requirements 35 90 200 250

Scheduled Receipts 20

Projected On Hand 20

Net Requirements 15 70 200 250

Planned Order Receipts 15 70 200 250

Planned Order Releases 15 70 200 250

==> Sum demand level 1,2,3

Item: 2 Period

Lot size: L4L LT: 1 2 3 4 5

Gross Requirements 40 170 440 100

Scheduled Receipts 20

Projected On Hand 20

Net Requirements 20 170 420 100

Planned Order Receipts 20 170 420 100

Planned Order Releases 20 170 420 100

==> Sum demand level 2,3

Item: 3 Period

Lot size: L4L LT: 1 3 4 5

Gross Requirements 90 210 150

Scheduled Receipts 20

Projected On Hand 20

Net Requirements 70 190 150

Planned Order Receipts 70 190 150

Planned Order Releases 70 190 150

==> Sum demand level 2,3

Item: 4 Period
Lot size: L4L LT: 1 2 3 4 5

Gross Requirements 10 40 100

Scheduled Receipts 20

Projected On Hand 20 10

Net Requirements 30 80

Planned Order Receipts 30 80

Planned Order Releases 30 80

==> Sum demand level 2,3

- Finacial Accounting External Accounting (FI):

1. Difference between FI (Financial accounting) and CO (Management
accounting or controlling) ?
a. In term of focus:
 FI (Financial Accounting) primarily focuses on external reporting and
provides a company's financial information to external parties such as
investors, creditors, and regulatory authorities. It deals with financial
transactions related to the company's overall financial position.
 CO (Controlling) primarily focuses on internal reporting and supports
the management in decision-making processes. It deals with internal
processes, cost centers, and performance analysis within the
organization.
b. In term of purpose:
 FI's main purpose is to ensure accurate external financial reporting,
comply with legal requirements, and provide stakeholders with a
comprehensive view of the company's financial health.
 CO's purpose is to help management control and plan business
processes effectively, make informed decisions, and optimize the use
of resources within the organization.
c. In term of content:
 FI deals with general ledger accounting, accounts payable, accounts
receivable, asset accounting, and other modules that contribute to the
company's overall financial accounting.
  CO includes modules such as cost center accounting, internal orders,
profit center accounting, and others that focus on internal management
accounting and decision support.

In summary, FI is more externally oriented, focusing on financial reporting for external

stakeholders, while CO is internally focused, supporting management in controlling and
optimizing internal processes.

2. What are Financial Statements?

Financial statements are formal records of the financial activities and position of a business,
person, or other entity. They provide an overview of an organization's financial condition and
performance over a specific period of time. The main types of financial statements are the
Balance Sheet, Income Statement (Profit and Loss Statement), and Cash Flow Statement.

3. What accounts are in Balance sheet? (trong slide)

 Assets: These represent what the company owns. Common examples include cash,
accounts receivable, inventory, property, and equipment.
 Liabilities: These represent what the company owes. Examples include accounts
payable, loans, and other obligations.
 Equity: This represents the residual interest in the assets of the entity after deducting
liabilities. It includes common stock, retained earnings, and additional paid-in capital.

4. What accounts are in Income Statement (aka, P&L accounts)?

The Income Statement reports a company's financial performance over a specific period of
time, summarizing revenues, expenses, and profits (or losses). Key accounts include:

 Revenues (or Sales): Money earned from providing goods or services.

 Expenses: Costs incurred to generate revenue. Examples include cost of goods sold,
operating expenses, and interest expenses.
 Net Income (or Net Loss): The difference between revenues and expenses. Net
income represents profit, while net loss represents a deficit.

5. Cash flow statements?

The Cash Flow Statement provides information about a company's cash inflows and outflows
during a specific period. It is divided into three sections:

 Operating Activities: Inflows and outflows of cash related to the core business
operations, including receipts from customers and payments to suppliers.
 Investing Activities: Cash transactions for the purchase and sale of long-term assets
(e.g., property, equipment) and investments.
 Financing Activities: Cash transactions with the company's owners and creditors,
including issuance of stock, payment of dividends, and repayment of loans.

6. What is the Accounting Cycle?

The accounting cycle is a systematic process that businesses follow to record, analyze, and
report financial transactions. It begins with the analysis of business transactions, followed by
journalizing entries in the general ledger using double-entry accounting principles. Posting to
the general ledger and preparing a trial balance helps ensure the accuracy of recorded
transactions. Adjusting entries are made to reflect unrecorded transactions, leading to the
preparation of adjusted trial balances and ultimately financial statements. Closing entries
reset temporary accounts, and a post-closing trial balance verifies the accuracy of the closing
process. The cycle concludes with optional reversing entries, providing a clean start for the
next accounting period. This sequential series of steps is vital for maintaining accurate
financial records and producing reliable financial statements for decision-making and
external reporting.

7. What are the 4 Master Data in FI?

In Financial Accounting (FI) within SAP ERP (Enterprise Resource Planning), master data
refers to the foundational information that is essential for conducting financial transactions
and generating accurate financial reports. In FI, the four main types of master data are:

 Chart of Accounts (CoA):

 The Chart of Accounts is a list of all G/L (General Ledger) accounts used by a
company. It defines the structure and organization of the accounts,
categorizing them by financial statement items and other criteria.
 Customer Master Data:
  Customer master data contains information about the company's customers.
This data includes details such as customer names, addresses, payment terms,
and other relevant information for managing customer-related financial
transactions.
 Vendor Master Data:
 Vendor master data contains information about the company's vendors or
suppliers. It includes details such as vendor names, addresses, payment terms,
and other relevant information for managing procurement and payment
processes.
 Asset Master Data:
 Asset master data encompasses information about the company's fixed assets.
This data includes details such as asset descriptions, acquisition values,
depreciation methods, and useful life. It is crucial for managing and tracking
the company's capital assets over time.

These four types of master data in FI play a fundamental role in establishing a structured
foundation for financial processes. They are essential for accurate financial reporting,
transaction processing, and overall financial management within an organization.

- Master Data:

 General ledger: includes many accounts that companies used to record financial data
 Chart of accounts (COA): list of accounts included in a general ledger
 Subsidiary Ledgers
 Reconciliation Accounts
- AP Processes:

 The main processes are: Invoice Receipt, Ensure enough asset for payment, Post
outgoing payment to vendor

- AR Processes:

 Relates to Sales
 The main processes are: Create Invoice, Post incoming payment from customer

- Accounting Cycle:

 Business Transactions -> Journal Entry -> General Ledger

- Journalize and Post these transaction:

1. On 17 Jan 2024, IEM purchased tools for $3,000 and paid for them via a check.

Date Account titles & Explanation Debit Credit

Jan 17 Inventory-Tools 3000
Accounts Payable 3000
(Purchased tools by check)

Inventory-Tools
Account Payable
Jan 17 3500
Jan 17 3500
2. An organization purchased office supplies as listed below on 26 Feb 2024. The vendor
invoiced the organization one day later, and the organization made payment via a check
one day after that.

a. Purchased office supplies for $2,500 from Vendor Z.

b. Purchased office supplies for $1,200 from Vendor Y.

Date Account titles & Explanation Debit Credit

Feb 26 Office Supplies 2500
Accounts Payable 2500
(Purchased supplies by
bank)
Feb 26 Office Supplies 1200
Accounts Payable 1200
(Purchased supplies by cash)
Feb 27 Accounts Payable 2500
Bank 2500
(Paid Z via bank transfer)
Feb 27 Accounts Payable 1200
Cash 1200
(Paid Y via cash)

Account Payable
Office Supplies
Feb 27 2500 Feb 26 2500
Feb 26 2500
1200 1200
1200

Cash
Bank
Feb 27 1200
Feb 27 2500

3. An organization sold products to customers as explained below. The customers were

sent invoices at a later date, and they made payment for the amount of the invoice
immediately.
 a. Sell products for $3,500 to Customer A.

b. Sell products for $3,500 to Customer B.

Date Account titles & Explanation Debit Credit

Mar 11 Accounts Receivable 3500
Inventory – finished goods 3500
(Sold goods for check)
Mar 11 Bank 3500
Inventory – finished goods 3500
(Sold goods for bank
transfer)

Inventory – finished goods

Mar 11 3500
3500

Bank
Accounts Receivable
Mar 11 3500
Mar 11 3500