Weightage: 10%

Objectives:                       To assess student’s understanding and skills to map the business scenario

of the case study in SAP, perform appropriate cost allocations and produce reports

Due date: 11 October 2024, Friday, 11.59 PM

Client:                                260

SAP Username:               learn-### assigned to you in workshops.

Initial password:             In the announcement on assignment

Submission requirements:

•    Your submission should have:

•     Your SAP User account, i.e., learn-### and student SID in every page header.

•     A first page that includes your name, student ID, learn-### number, and a table of master data elements (G/L accounts, cost centres, cost elements, activity types, statistical key figures etc.), document numbers and/or allocation cycle numbers  generated by the system and codes for your allocation cycles (No need for a separate cover page).

•     Appropriate screen shots of: i) Actual distribution/assessment   basic list that shows document number, and assessment/distribution line items display for each of the allocation ii) direct activity allocation document display screen with details of document number, cost centres and allocated values (both quantities and costs) clearly shown (for all the secondary costs), and iii) actual/plan/variance cost centre reports for your cost centre group GC### and for each of your cost centres in the group (that shows values for activity types and statistical key figures) for the current month. Please do not capture excel reports. These reports must be captured as screen shots from SAP.

•     You can place up to two screenshots in each page, and make sure they are visible (you must crop out unnecessary areas of the screenshots for better visibility).

•     One single PDF document with pages not exceeding 20 (including cover page) must be submitted. Penalties apply if the screenshots are illegible or missing, the values are incorrect, and if the assignment does not have identifying information. Please see the marking criteria available in Canvas.

Further Instructions and hints:

•    You must first decide which master data, which transactions, and which allocation methods (for specific costs) are required to reflect the scenario and determine the reports required, execute them in the system, capture required screen shots on to word document, convert that into PDF and submit.

•    You are using SAP configured for Global Business Bikes company in client 260 and therefore map and work within that firm as you have done in SAP exercises.

•    You  must use the  learn-### assigned to you in workshops. Using wrong account attract heavy penalties. If you are not sure, please go to Canvas and check your learn number again.

•    Please remember to charge the costs (planned and actual) to appropriate cost centres as described in the business scenario. Incorrect charging will show the reports as erroneous and may attract penalties.

•    While  executing cost centre group  reports, make sure your reporting period is for the current month (and not for the entire year), i.e. From period = current month; and To period = current month.

•    Your allocations must be based on ‘allocation basis or ‘statistical key figures’ (as demanded by the business scenario) you setup in SAP for the system to compute the costs and allocate to individual cost centres. Using incorrect method may attract penalties.

•    SAP is a real-time accounting system, so you must use 01.01.2024 to 31.12.2024 for creating all your master data, today’s date for all postings, and current year for all your allocations.

•    Caution:  I strongly  recommend you do your postings and reports in the same month. If you do your postings in April and do the reports in May, then you won’t be able to see all your values in the report when you try to produce the report for the current month. In that instance, you may have to produce report for the entire year ‘ FROM period 1 TO period 12’

•    Considering the limits on authorisations, complexity of the software, focus on user perspective in workshops, and the real-time nature of the accounting system, it is easier and efficient to create new master data and transactions if mistakes are made, rather than correcting the errors. Please note, if errors are made either in the creation of master data or in performing transactions, they CANNOT simply be deleted, and the errors will therefore carry into the final cost centre reports. Marks are proportionate and depends on correct mapping of the scenario in  SAP including creation of relevant master data, evidence of transactions and reports, correctness of the methods employed for allocations, accuracy of the values in the reports and overall presentation (i.e., visibility of screen shots, submission of required screen shots & identifying information). Please see the marking guide and criteria posted in Canvas for more details.

• Appendix  1 provides a list of master data codes and Appendix 2 provides a list of generic field values to be used while creating master records and executing transactions in the SAP system. Failing to use the assigned codes will attract penalties. For all the other codes not mentioned in table 2, please use the codes you have used in SAP Exercises.

Scenario:

Your company (GBI) offers health services through its clinics. It purchases specialist consulting services in bulk from Apollo Hospitals (###Apollo), a large multidisciplinary health care services company using an annual contract. For the current month, management received an invoice from Apollo Hospitals (###Apollo) for an amount of $800,000. This amount is initially charged to Administration (A###) department in your Health care services group. At the end of the period, your management wants this cost to be allocated to various speciality units based on the actual consulting hours used by each of the  speciality  units.  For  the  current  month,  Cancer,  Neurology,  Gynaecology  and  Opthalmology consulting divisions - all of them in the Healthcare group (HC###), used 600, 1000, 1600, and 800 hours of specialist consulting hours respectively. Budgeted consulting hours for these divisions, however, is 500,  1000,  1500  and  700  for  Cancer,  Neurology,  Gynaecology,  and  Ophthalmology  divisions respectively. Your firm allocates actual consulting service costs to  all the divisions in its Healthcare group (HC###) but wants the identity of the costs to be clearly shown in the receiver cost centre reports.

Budgeted/planned and actual costs incurred by various divisions towards Salaries for the staff and utilities are given below. While planned costs are recorded in the system for the current month for each cost centre as shown below, actual costs are posted directly in the general ledger every month and charged to the individual divisions (cost centres).

For all its divisions, Administration (A###) provides all the support services such as accounting, payroll, human  resources.  As  a  controlling  measure,  management  would  like  to  measure  these  support services activity (SS###) provided by Administration department to other departments in their cost centre group (HC###) in hours and allocate those internal costs to them. In the current month, it has provided 400, 200, 600 and 300 hours of support services (SS###) to Cancer (C###), Neurology (N###), Gynaecology (G###) and Ophthalmology (P###) services divisions respectively at a rate of $100 per hour. Total planned activity for the Support services is 1400 hours for the current month. The actual and planned costs towards staff salaries for the administrative services division are $140,000 and $130,000 respectively, and $1,000 and $1,200 respectively towards utilities. In addition, the company is incurring $50,000 towards the rent and would like to allocate the rental expenses equally to all the five departments (including Administration department) in the Health care service group (HC###) and does not want the identity to be shown in the receiver cost centre reports. Currently actual rental expenses are directly posted in the General Ledger and initially charged to Administration (A###). Budgeted rental expenses are $50,000 per month.

You are required to map the entire business scenario as explained above in the SAP accounting system by first determining the master data, transactions, allocations, and reports required, and then by creating the master data in the system, executing the transactions and allocations, and producing the reports in SAP.

You must submit appropriate screen shots of: i) Actual distribution/assessment basic list that shows document number or assessment/distribution line items display for each of the allocation along with the document number details in the screen ii) direct activity allocation document display screen with details including document number, cost centres and allocated values (both quantities and costs) clearly shown, and iii) actual/plan/variance cost centre reports for your cost centre group HC###, including values for activity types and statistical key figures if any for the current month.