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1. tABLE 1: COMPARING CORE PROCESSES                               6 marks

Column 1 lists the main activities in the GBI Order to Cash process. Please complete the following: –

 

In column 2

• identify any similar activity in the Pharmacy order to cash segment
• Where there is no similar activity, write “absent”
• Where there is an additional activity, add a line to the table and describe it.

In column 3

• list any significant differences between activities. These may include
  • the way the activity has undertaken
  • the order in which it appears in the process.
  • The event data used or generated in the process

In column 4

• Explain the reason for any differences, absences or order of appearance. Reasons may include
  • A difference in the nature of the business
  • An activity which in your view is relevant to the business but is inadequate or missing
  • A difference in the scope (ie start and end event) of information available to you about the two processes

Note: you may need to add rows if there are activities in the pharmacy segment which do not occur in the order to cash segment

 

 

 

Table 1

1. Activity in GBI order to cash	2. Activity in Pharmacy order to cash segment (similar to column 1)	3. Significant differences (if any) between activity in GBI order to cash and in Pharmacy segment	4. Reason for differences, absences or order of appearance of activities. absence of activity
Verify customer against customer master data	Verify the details of the customer	In the pharmacy case, the pharmacist gets the details directly from the customer since there is no master data.	Unlike in the GBI where the customer is verified against the master data, in the pharmacy, the customer is new and there is master data on the customer.
Verify the customer’s creditworthy	absent	The customer is attended to without her creditworthy evaluated	There is no credit control measures put in place
Verify stock against material master data	Absent	The pharmacist starts to work on the order without verifying the presence of the product in both the material master and counter stock	Ignorance or lack of proper training in order to cash process
Prepare customer quotation	Order availability explained	Customer quotation is not available in written form. The pharmacy explains the availability of the order, price and available alternatives to the customer verbally.	The order is already prescribed in the doctor’s notes.in the medical world, there are various alternatives that can remedy the same disease.
Process sales order	The customer makes the order. The pharmacist keys in the order, dosage, direction to use and price in the system	The sales order is prepaid and it ultimately becomes the receipt	In a pharmacy business, the sales order becomes the receipt which the customer uses the purchase at the loading point.
Recheck stock in the warehouse	Check the stock in the counter	The pharmacist does so after he has already processed and receipted the order	Checking the stock should be done before the processing of the order to avoid a situation where one has receipted an order that is out of stock.
Create shipment authorization	Absent	The Receipt acts as the authorization of the order	After counter checking her request with the receipt, then the authorization process will come to an end
Create pick list and pack goods	Pick the order from the shelf	Attach dosage and directions to use stickers	To avoid giving the wrong order or wrong dosage which can be very detrimental to the health of the customer.
Check shipment	Verify the medication from the counter against the receipt data	Safety information is attached	To avoid complications that can arise out of poor use
Notify accounting	present	The accounting function is integrated in the system	Once the pharmacist fills the order it is reflected in the other sections of the business automatically
Permit goods to be shipped	Absent	The order is not invoiced its pre-ordered	By acknowledging the sales order from the customer, already the permission has been granted
Ship goods to the customer	Take the order to the client	After sales service is done;	To educate the customer on the use of medications so as to avoid any complications.
Generate invoice	Absent	A sales order or receipt is processed and not the invoice	The order is already prepaid and therefore there no need for an invoice
Check SO, invoice and payment match	Absent	The payment match is verified by the customer against the order when delivered	In pharmacy, the order is always pre-paid and verified before been delivered
Post receipt and update accounts	present	The accounting function is integrated into the system	Once the pharmacist fills the order it is reflected in the other sections of the business automatically

 

 

 

 

2. Table 2: COMPARING MASTER DATA                                                                                                       8 marks

Column 1 lists the main master data in the GBI Order to Cash process. Please complete the following: –

 

In column 2

• identify any similar master data in the Pharmacy order to cash segment
• Where there is no similar master data, write “absent”
• Where there is additional master data, add a line to the table and describe it.

In column 3

• list the specific data fields required in GBI order to cash (hint: consider the specific fields used in the SAP exercises)

In column 4

• list the specific data fields required in the pharmacy order to cash segment

In column 5

• Explain the reason for any differences or absences in data fields within the master data. Reasons may include
  • A difference in the nature of the business
  • An activity which in your view is relevant to the business but is inadequate or missing
  • A difference in the scope (ie start and end event) of information available to you

Note 1: Your source for the GBI data fields will be the SAP exercises. You may limit your discussion to the data fields shown in the screenshots given in class

Note 2: Your source for the pharmacy data fields will be the videos. You may limit your discussion to the data fields you can see there.

 

Table 2

1.     Master data used in GBI order to cash	2.     Master data used in the Pharmacy order to cash segment	3.     Specific data fields required for GBI order to cash	4.     Specific data fields required for Pharmacy order to cash segment	5.     Reason for differences in data fields
Customer	customer	Name Address Customer’s number	customer’ s name medical card details date location of the client or home address	Unlike other business, in pharmacy a medical card is required it stipulates whether one is entitled to free or reduced-rate medical care.
Material	medication	Product Division   Material group Order number Old material number	product name dosage direction on use Drug information Allergy information Drug details	Specific dosage is a requirement while administering medications. Allergies of the patient should be mastered to avoid administering medication that would react to the same.
Accounts		Basic unit measure Unit price Quantity authorization	Quantity Price	none
Absent	Doctor or prescriber’s information	Absent	Doctor’s name Prescriber’s number	For the pharmacist to sell, the customer should have a prescription from a licensed doctor.

 

 

 

 

3. TABLE 3: Application Risk and Control Template                                                                   6  marks

In Table 3 below, please complete the following:-

 

In column 1, provide six (6) risks that you believe are currently present in the pharmacy process, one in each row provided.

 

In column 2, describe the current control (if any) that mitigates that risk.

 

In column 3, state the current status of the control.

 

In column 4, provide suggestions for improvement to the current control. If no improvements are suggested, write “none”

 

Table 3

1.     Risk	2.     Control	3.     Current status of control (present, absent, unknown)	4.     Suggestions for improving control
loss of time due to several handovers of information circulated in various departments.	The presence of the Standard and integrated system is very crucial compared to a variety of departmental systems in use.	present	Train the employee in the effective use of the system
Credit unworthy customers	The pharmacy should conduct a credit review of the customer before accepting the order	Absent	Establish and integrate to the system creditworthy evaluation criteria
Errors in Order taking; This can range from the wrong medication entered, wrong quantity entered, wrong prescription and wrong dosage.	The pharmacist reduces the chances of error by asking follow-up questions and using the medical for personal details of the client.	Present	none
Inability to recall patient’s details when he or she comes for a refill	Master data is very crucial as a reference for the patient’s information the p	present	none
Lack of stock	A replenishing plan	Absent	One of the major decisions as far as inventory is concerned is restocking. In the second video the pharmacist has run out the customers refill order, and he isn’t aware. The client’s time is wasted waiting for the refill. She leaves a disappointed customer. A replenishing plan should be put in place to avoid such incidents in the future as such will lead to loss of customers, sales and profits in the future. The pharmacist should be trained in checking the inventory before taking an order from a customer.
Possibility of returns	Encourage the customer to verify her order before he or she leaves the pharmacy	Absent	The customer should be encouraged to counter check the receipt against the order and verify if they match