order to cash process controls governance ， risk and compliance v1.53 (cn) sap best practices

Order to Cash Process Controls

Governance ， Risk and Compliance V1.53 (CN)

SAP Best Practices

© SAP 2008 / SAP Best Practices

Scenario Overview – 1

Compliance structure in C-sox regulation has been set up for Order to Cash processes. (Organization, Process, Sub-process, Control)

Scoping has been done to identify the significant accounts. Compliance assessment should be implemented for the signified sub-processes and controls in Order to Cash.

Prerequisite

Business Relevance

Significant control points should be monitored this year in Sales and Receipts management:

Control with Manual Test Plan (Accounts Receivable and Balance Management)

Control with Semi-Automatic Test (Managing One-time Customer)

Control with Semi-Automatic Test (Product Pricing)

Control with Automatic Test (Customer Credit Control)


Purpose Process Controls in Order to Cash are used to describe the lifecycle of

compliance assessments in Order to Cash business processes. Compliance testing can be implemented manually, or via automatic control or

semi-automatic control. You can test effectiveness of control, or to detect business violation by

monitoring underlying transactions in ERP systems.

Benefits Highlight key points in compliance testing in business process Order to Cash. The procedures can be reused in continuous monitoring and control in Sales

and Receipts Management.

Purpose and Benefits

Scenario Overview -2



Create planner for manual test control and semi-auto control

Create Scheduler for Automatic Control

Process the manual test plan

Validate the result of semi-automatic control

Issue validation and issue remediation plan proposal

Execute remediation plan

Remediation plan review and issue close

Key Process Flows Covered


Control Highlights


Controls Test Method

Purpose Benefits

Accounts Receivable and Balance Management Manual

Test whether Balance confirmations of accounts are periodically performed and documented correctly.

Ensure that balance of customer accounts reflects the reality on regular basis.

Managing One-time Customer

Semi-auto Test whether the usage of one-time customer is proper

Ensure one-time customer is managed in an appropriate way.

Monitoring Changes on Product Pricing

Semi-autoTest whether product pricing information is updated accurately and timely

Ensure the consistency of customer pricing strategy.

Monitoring Changes on Customer Credit Control

AutoTest whether customer credit control information is updated accurately and timely

Ensure the consistency of customer credit management.


SAP Applications Required SAP GRC PC3.0 SAP ECC 6.0


Company Roles Involved in Process Flows(Manual and Semi-auto Control)

System Roles

Planner

Process Tester

Issue Owner

Remediation Plan Owner

Company Roles

Internal Control Manager 审计审计部内控经理 Internal Control Specialist 审计部内控专员 (OTC)

Subsidiary#2 Sales Manager 子公司 2销售部经理Subsidiary#2 Sales Specialist 子公司 2销售部专员

Automatic Control

System Roles

Planner

Issue Owner

Remediation Plan Owner

Company Roles

Internal Control Specialist 审计部内控专员 (OTC)

Subsidiary#2 Sales Specialist 子公司 2销售部专员Subsidiary#2 Sales Specialist 子公司 2销售部专员Subsidiary#2 Sales Specialist 子公司 2销售部专员


Process Flow Diagram 1/4Order to Cash Process Controls with Manual Test Plan(Accounts Receivable and Balance Management 应收账款对账管理 )

Set up and schedule manual test plan with activity “Test Control Effectiveness”

Follow the steps in manual test plan, to perform manual Test of effectiveness

Ev

en

tP

lan

ner

Pro

cess

Tes

ter

for

OT

C

Compliance Manual Test Plan

Get task in Work inbox

check the issue

Issu

e O

wn

er

Report Issue?

Yes

No

Propose the remediation plan

delegate a plan owner

The test has

passed

Get task in Work inbox

Need remediation Plan?

Close issue with comment

but without remediation

plan

No

Yes

Enter details for remediation plan

Submit remediation plan for review and completeness

Receive email in the Work inbox

Validate remediation plan?

Yes

Close remediation plan

and issue

Compliance Manual Test Plan

Rem

edia

tio

n

Pla

n O

wn

er

No

Yes


Process Flow Diagram 2/4 Order to Cash Process Controls with Semi automatic Control(Managing One-time Customer 一次性客户销售管理和监控 )

Ev

en

tP

lan

ner

P

roce

ss T

este

r F

or

OT

C

Create Planner for the Semi-automatic Control

Review the issue created by system automatically

Compliance Semi-automatic test Plan

Get task in the work inbox

Any Issue? No

Submit , and the test has

been passed


Process Flow Diagram 3/4Order to Cash Process Controls with Semi automatic Control

(Monitoring Changes on Product Pricing 监控产品销售价格信息变动 )

Ev

en

tP

lan

ner

P

roce

ss T

este

r F

or

OT

CIs

sue

Ow

ner

R

emed

iati

on

P

lan

Ow

ner

Set up and schedule manual test plan with activity “Test Control Effectiveness”

Review the issue created by system automatically

Compliance Semi-automatic test Plan

Get task in process tester’s work inbox

check the issue

Valid Issue?

Yes

No

Propose the remediation plan

delegate a plan owner

The test has been passed

Get task in issue owner’s Work inbox


Close issue with

comment but without remediation

plan

No

Yes



Receive email in remediation plan owner’s Work inbox


Yes

Close remediation plan and

issue

Compliance semi-automatic Test Plan

No

Yes

Void the issueSubmit the

issue


Process Flow Diagram 4/4 Order to Cash Process Controls with Automatic Control

(Monitoring Changes on Customer Credit Control 监控客户信用额度信息变动 )

Set up and schedule automatic test

Ev

e n tP

lan

ner

Compliance Automatic Test Plan

Issu

e O

wn

er

Pass

Compliance Automatic Test Plan

Start date reached?

Monitor Job

Yes

Rem

edia

tio

n

Pla

n O

wn

er

PC

Au

to-

co ntr ol

check the issue

Yes

Propose the remediation plandelegate a plan owner

Get task in issue owner’s Work inbox


No

Yes



Receive email in remediation plan owner’s Work inbox


Yes

Close remediation plan and issue

No

Yes

No

No

The test has passed

Close issue with comment but without remediation plan


Legend

Symbol Description Usage Comments

Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role.

The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario.

Role band contains tasks common to that role.

External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.

Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario.Flow line (dashed): Line indicates flow to infrequently-used or conditional tasks in a scenario. Line can also lead to documents involved in the process flow.

Connects two tasks in a scenario process or a non-step event

Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario

Does not correspond to a task step in the document

Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario

Corresponds to a task step in the document

Process Reference: If the scenario references another scenario in total, put the scenario number and name here.


Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here


Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.

Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution

Symbol Description Usage Comments

To next / From last Diagram: Leads to the next / previous page of the Diagram

Flow chart continues on the next / previous page

Hardcopy / Document: Identifies a printed document, report, or form

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Financial Actuals: Indicates a financial posting document


Budget Planning: Indicates a budget planning document


Manual Process: Covers a task that is manually done

Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow.

Existing Version / Data: This block covers data that feeds in from an external process

Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines

System Pass / Fail Decision: This block covers an automatic decision made by the software

Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.

<

Fun

ctio

n>

Ext

ern

al to

S

AP

Business Activity / Event

Unit Process

Process Reference

Sub-Process Reference

Process Decision

Diagram Connection

Hardcopy / Document

Financial Actuals

Budget Planning

Manual Process

Existing Version / Data

System Pass/Fail Decision


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order to cash process controls governance ， risk and compliance v1.53 (cn) sap best practices

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