Question:
1. Identifyspecificrisks in the sales ordering process (at least 3).
2. Make aspecificdetective control for each risk you identified in question 1ANDmake aspecificpreventive control for each risk you identified in question 1. So each risk will have 2 corresponding controls. Be sure to clearly identify and explain each control as either detective or preventative.
Order Processing Orders are received via fax, mail, e-mail, or phone. Customer service associates (CSAs) are responsible for monitoring incoming orders that arrive at the business center. All faxes and postal mail are electronically converted by CSAs and input into the system. Telephone orders are directed to a central call number and an available CSA takes the order information. All orders must be created with reference to a customer account that is established in the customer master file within SAP, the Company's information technology system. If an order is received for a nonexisting account, the new-account procedure is followed whereby a credit analyst reviews the credit worthiness of the customer on the basis of a Dun & Bradstreet credit report. When credit is denied, the order process ends and the customer is notified of the credit decision. If credit is extended, a credit analyst creates a new customer account in the customer master file and requests that a CSA process the order. When an order is entered in SAP, "sold to" and "ship to" fields must be populated with a valid customer number that matches the established customer number in the customer master file. Fields for sales and payment terms are automatically populated with the information contained in the customer master file in SAP. All line items on the sales order are systematically populated based on the information in the master pricing file. Sales orders are configured with the following mandatory fields: sales order type (e.g, a rush order or a stock order), order source (e.g., fax, mail, e-mail, phone), sales organization, sold-to and ship-to account numbers, item quantities, material numbers, and purchase order number. The balance of the information is automatically extracted from the customer master file or pricing master file records. Sales to customers withnonstandard payment or shipping terms are automatically flagged in SAP; the flags are used in the shipping and invoicing process to generate exception reports for management review. Pricing for each customer may differ on the basis of negotiated contracts, which are configured against the master pricing file with customer-specific discounts applied. When orders are placed on hold because of an account or credit hold, the credit department is notified. A credit analyst will review the hold and determine whether the hold can be resolved. If the hold cannot be resolved, the credit analyst will notify the customer of the order cancellation, thus ending the order-entry process. If after an investigation the hold can be resolved, the credit analyst will release the hold and submit the order to a customer service manager for review. All processed orders must be reviewed and approved by a customer service manager before they are submitted for shipping and invoicing. If errors are discovered, they are resolved by the CSAs and the order is resubmitted through the process. After a sales order is approved, it is released and updated in SAP.Start Customer Service Associate receives order Customer Service Sales and Payment Is customer in Ye Associate enters Terms generated Master File? order data into SAP based on Customer system Master File SAP SAP Order Processing Credit Analyst SAP prices order approves/denies systematically based credit based on D&B on Master Pricing credit report File SAP Credit Customer on Credit Analyst Credit Analyst reviews the Hold issue contacts customer Approved? account or credit resolved? to inform them of End No hold? customer account order cancellation. No NO End Yes Customer Service Manager reviews and orders for validity and Sales Credit Analyst Order accuracy. creates new customer in the Customer Master File in SAP, Is order Sales order is Shipping & SAP correct? released and Invoicing updated in SAP SAP
