College of Computing and Informatics

Assignment 2
Deadline: Saturday 29/10/2017 @ 23:59
[Total Mark for this Assignment is 40 marks]

Student Details:
Name: ### ID: ###

CRN: ### Mark : ### / ##

Instructions:

This Assignment must be submitted on Blackboard via the allocated folder.

Email submission will not be accepted.

You are advised to make your work clear and well-presented, marks may be reduced for
poor presentation.

Late submission will result in ZERO marks being awarded.

You MUST show all your work; The work should be your own, copying from students or
other resources will result in ZERO marks.

Use Times New Roman font for all your answers.

PS. Keep this template unchanged, just insert your answers.

Pg. 01 Question One

Learning
Outcome(s): Question One 8 Marks

Instructors: State Explain why and how the FI process is integrated with other processes?
the Learning
Outcome(s) that (Give an example of the integration between the FI process and other process)
match this
question
Answer:

Management accounting processes, like FI processes, use fi nancial data recorded

during process execution to generate reports. Specifi cally, CO reports focus on costs
and revenues which management uses to achieve basic business objectives such as
increasing revenues,minimizing costs, and achieving profi tability. In contrast to FI,
however, the content of these reports is not prescribed by any external entity.
Pg. 02 Question Two

8 Marks
Learning
Outcome(s): Question Two
Instructors: State
What does purchasing organization level mean in the organizational data of the
the Learning
Outcome(s) that procurement process?
match this What are the three models of this level (use an example of a company from your
question imagination or a real a company to show the difference between the three models)?

Answer:
A purchasing organization is the unit within an enterprise that performs
strategic activities related to purchasing for one or more plants. It evaluates
and identifi es vendors, and it negotiates contracts and agreements, pricing, and
other terms. An enterprise may have one or more purchasing organizations.
Typically, there are three models of purchasing organizations: enterprise level,
company level, and plant level. These models range from highly centralized to
highly decentralized.

Enterprise-Level Purchasing Organization

The enterprise-level purchasing organization, also known as the cross-

company code purchasing organization, is the most centralized model. There is
only one purchasing organization for the overall enterprise and all of the plants
within the enterprise. Figure 4-3 illustrates the GBI organizational structure
using the enterprise-level model. There is only one corporate purchasing orga-
nization, GL00, and it handles purchasing for all fi ve plants in both company
codes (US00 and DE00). In this model, the purchasing organization is assigned
to each plant, but not to the company code.

Company-Level Purchasing Organization

Pg. 03 Question Two

With the company-level purchasing organization, also known as the cross-

plant model, a single purchasing organization is responsible for multiple plants
in one company code. Figure 4-4 illustrates such a model for GBI. In the
fi gure, there are two purchasing organizations: US00 and DE00. US00 is
responsible for all three U.S. plants, and DE00 is responsible for the two
German plants. This approach is less centralized than the enterprise-level
model. In this model the purchasing organization is assigned to both the plant
and the company code. However, a purchasing organization can be assigned
only to one company code.

Plant-Level Purchasing Organization

The most decentralized model is the plant-level purchasing organization, also known
as a plant-specifi c purchasing organization, in which each plant has its own purchasing
organization. Figure 4-5 illustrates a plant-specifi c model for GBI. Note that each
plant has its own purchasing organization Organizational Data 87 CH004.indd 87
H004.indd 87 31/01/11 7:35 PM 1/01/11 7:35 PM that is responsible for purchasing
materials for that plant. As in the case of the cross-plant model, in this scenario the
purchasing organization is assigned to both the plant and its company code.
Pg. 04 Question Three

9 Marks
Learning
Outcome(s): Question Three
Instructors: State Consider this scenario:
the Learning
HappyHome is a factory specialized in manufacturing some ranges of home
Outcome(s) that
match this appliances. HappyHome is purchasing, on credit, some office supplies for its
question administrative staff. The total cost of these supplies is 3,500 SAR

Record financial impacts of this purchase transaction.

Answer:

Happy Home DR. CR.

Sales Revenues 3500 SAR

Account Payable 3500 SAR

Pg. 05 Question Four

15 Marks
Learning
Outcome(s): Question Four
Instructors: State Now, consider a scenario in which our factory HappyHome, sells home appliances to
the Learning three customers on credit for 5,000 SAR; 3,000SAR and 5,500SAR respectively, and
Outcome(s) that then receives payment at a later date.
match this
question
Record financial impacts of this sale transaction.Answer:

When They Sell

DR. CR.

Accounts Recievable 5000

Sales Revenue 5000

DR. CR.

Accounts Recievable 3000

Sales Revenue 3000

DR. CR.

Accounts Recievable 5500

Sales Revenue 5500

When Payment Comes

DR. CR.

Cash 13500

Accounts Recievable 13500

Pg. 06 Question Four