Questions: 1-4

1. Project In-Scope Boundary in this project?

2. Project Out-of-Scope Boundary in this project?

3. Project Assumptions in this project?

4. Project Limitations in this project?

Read the following 3 images on a business case and respond to the following questions above (1-4).

Executive Summary Fine Foods, Inc. (FF) is a wholesaler of packaged foods. FF sells to retailers such as grocery stores, convenience stores, and to one airline food services company. FF was originally a single small organization but has recently grown considerably by purchasing other similar food businesses. Because each business had its own systems some of which were run from spreadsheet files FF has had a difficult time tying their data and organization together. FF needs to standardize processes and integrate data and systems across its businesses. Business Structure FF has chosen to allow the recently acquired organizations to remain as independent legal and operational entities. Each will maintain separate distribution locations. None of the businesses currently produce the foods sold; instead, each act as a wholesaler of meats, vegetables, fruits, and spices that it purchases from growers and food processors. The following businesses are part of the Fine Foods family: a Fine Foods Incorporated Fine Foods Budget Fine Foods Gourmet Fine Foods Low-Cal Fine Foods Organic Each business maintains a single distribution warehouse. The warehouses have both refrigerated and non- refrigerated space. The organization is in the process of centralizing its purchasing operations. Financial Accounting All the FF businesses currently run on different legacy financial systems, keeping track of different charts of accounts in different ways. FF is listed on the Over-the-Counter stock market and must therefore file an annual consolidated financial statement with the SEC for tax and compliance purposes (Hint: What do we know about charts ofaccoantSP). FF operates on a calendar year January 1 to December 31. The organization issues monthly financial statements and has one "special\" period for reporting end-ofyear results. All business is conducted within the United States, and therefore all transactions are completed in US Dollars. FF wants all its businesses to use the same chart of accounts to ensure consistent accounting across the organization (refer to the appendix for details). Most accounts should be shared across the businesses, but each business should maintain separate accounts for Cash, Accounts Payable, GRIIR, and Common Stock (Hint: Create account in one company code first and then create views of this account in other company codes). All businesses will use a single common credit department and customers will be treated uniformly for credit purposes. Procurement One driver of FF's recent acquisitions was to take advantage of greater purchasing discounts across its businesses by centralizing the purchasing operation. The businesses within the FF family all share some business partner vendors and products and want to take advantage of this for better vendor pricing and discounts. Unfortunately, they do not currently share common vendor or material records. Each business presently maintains its own legacy purchasing system. Currently, FF runs a rudimentary MRP system that is part of their legacy software, but subsidiary businesses plan purchasing activities manually. The other businesses take a weekly physical inventory and order according to pre-determined inventory levels that they wish to maintain. Since they have a very small product line, they can accomplish this now, but it is beginning to hinder their growth potential. Also, not having inventory on-line has hurt their customer service efforts. None of the businesses now use purchase orders or a three-way match. They all have long-standing relationships with suppliers and have not found this to be necessary. However, new Sarbanes-Oxley requirements call for greater control over purchasing, inventory, and spoilage. In the past, they havejust thrown away bad produce, without making any particular accounting for it. They are now required to have some sort of process for accounting for product spoilage and recording it in their books. The organization does not have any formal policies on acceptable tolerances in vendor invoices or goods receipts. As part of their last audit, they were told that they must develop some good tolerance policies across the organization to meet Sarbanes-Oxley control requirements in the future. The businesses have one common vendor: FMI. Some businesses share other vendors. Currently, each vendor has separate contractual agreements with each individual business, which must be honored through the end of the year. Because each of the businesses had a separate purchasing department, they are not taking advantage of bulk purchasing discounts when they purchase from the same vendors. Combining purchasing efforts would allow them to have a better bargaining position with their vendors. In the future, FF would like to take advantage of increased purchasing discounts by grouping purchases together. Refer to the appendix for Business Partner Vendor information. Overview To help accomplish some business process and data integration, FF has purchased SAPa software. You are an IT manager at one of the businesses that is part of the Fine Foods organization. In the first wave of the SAP project, the organization will roll out Purchasing and Accounting functions. You will complete an SAP Implementation, including all project documentation, to provide a Purchasing and Financial Reporting system for FF. Your nished project will include a delivered system in SAP S/4HANA, with the project documentation included in Solution Manager. You will develop the S/4HANA system in your own project client (930:) as specified by the instructor. FF has several subsidiaries, and each student will be responsible for creating their \"own\" subsidiary business. Subsidiaries not represented by a student can be ignored. High Level Business Requirements Financial Accounting - Organization 8: Data Design and implement an appropriate Fl organizational structure based on the business case provided. Implement a common Chart of Accounts and populate it with both shared and individual accounts as per the Chart of Accounts located in the appendix. (Hint: Remember that shared master data results in all company codes or plants using the same \"number\" account, material, vendor, etc. ). Note that additional accounts may be required to successfully complete the project. Financial Accounting - Operations Enable nancial account postings for FF (posting periods, document numbers, etc.). Develop and implement tolerances to comply with Sarbanes-Oxley requirements. No employee should be able to make a journal entry to petty cash or other account which exceeds $45,000. Only a supervisor, IT manager, or owner may make an entry this large. Ensure all goods movements in the system will automatically update general ledger accounts. inventory & Procurement Organization & Data Design and implement an appropriate MM organizational structure based on the business case provided. FF's goal is to centralize their procurement process. Create business partner vendor and material master records as per the Material and Vendor lists in the appendix. Be sure to share all vendors and materials used by multiple FF businesses. inventory 8: Procurement - Operations Enable all activities in the procurement cycle (requisition, purchase order, goods receipt, invoice, vendor payment)