Baan Business Process Controls

Clay Young
Deloitte & Touche

ISACA Spring Conference

April 28, 1999
 Application Overview
Baan Business Process Controls

Baan IV Packages

• Common
• Process
• Finance
• Project
• Transportation
• Manufacturing
• Service
• Distribution
• Tools
• Enterprise Modeler

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 Common Data Module
Baan Business Process Controls

Logistics Tables Common Data

•Areas •Company
•Commodity Codes •Employee
•Countries •Customer
•States •Supplier
•First Free Numbers Financial Tables
•Forwarding Agents
•Banks
•Item Groups
•Currencies
•Languages
•Factoring Companies
•Lines of Business
•Payment Terms

Common Parameters

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 Finance
Baan Business Process Controls

• General Ledger
• Accounts Payable
• Accounts Receivable
• Cash Management
• Fixed Assets
• Financial Statement
• Financial Budget
• Cost Allocation
• Parameters

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 Project
Baan Business Process Controls

• Requirements
• Progress
• Monitoring
• Invoicing
• Estimating
• Definition
• Budget
• Planning
• Parameters

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 Manufacturing
Baan Business Process Controls

• Engineering Data Mgmt.

• Item Control
• Bill of Material
• Routing
• Master Production Schedule
• Material Requirement Planning
• Capacity Requirement Planning
• Repetitive Manufacturing
• Shop Floor Control
• Hours Accounting
• Project Budget
• Product Configuration
• Product Classification
• Project Control
• Quality Mgmt. System
• Parameters
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 Distribution
Baan Business Process Controls

• Purchase Control
• Sales Control
• Sales and Marketing
• EDI
• Replenishment Order Control
• Inventory Control
• Lot Control
• Location Control
• Distribution Requirement Planning
• Tables
• Common Data
• Item Control
• Cost Accounting
• Parameters

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 Process
Baan Business Process Controls

• Formula Management
• Routing
• Master Production Scheduling
• Material Requirement Planning
• Quality Management System
• Parameters

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 Transportation
Baan Business Process Controls

• Employee Control
• Address Control
• Transport Fleet Management
• Transport Fuel Control
• Hours and Expense Control
• Central Data Entry
• Transport Control
• Packing Control
• Warehouse Control
• Parameters

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 Service
Baan Business Process Controls

• Installation Control
• Contract Control
• Service Order Control
• Service Analysis Control
• Parameters

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 Tools
Baan Business Process Controls

• Software Installation • Terms and definitions

• Application Configuration • Translation
• User Management • Documentation
• Device Management • Conversion
• Job Management • Software Distribution
• Database Management • Desktop Management
• Audit Management
• Text Management
• Menu Management
• SQL Queries
• Business Objects
• Application Customization
• Application Development
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 Dynamic Enterprise Modeler
Baan Business Process Controls

Repository

Reference
Models

Project
Configuration
Model

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 Dynamic Enterprise Modeler
Baan Business Process Controls

The DEM:

• Generates user desktops based on the role(s) to

which the employee is linked

• Creates session authorizations for employees

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 Dynamic Enterprise Modeler
Baan Business Process Controls

Order Entry
Clerk

Order Entry
Manager

Customer
Service

Process Flows Roles Employees Baan Users

• Process flows are created in the DEM to define processes used in the
to-be business environment. Roles are assigned to process flows.
• Employees (referring to Baan users in the DEM Project Model) are
assigned to roles.
• Employees are linked to Baan system users. Additional security will
likely be assigned at the user level.

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 DEM and Tools
Baan Business Process Controls

DEM can be used to establish session authorizations

Roles Employee User

Tools is used to make security and controls more granular

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 Parameters
Baan Business Process Controls

Types:

Permanent

Changeable

• Parameters exist for all packages, and are a key

element of control

• Parameters impact all levels, including Package,

Module, Sessions and Fields

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Example Processes
Baan Business Process Controls

Purchase to Payment

Order to Cash

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 Purchase to Payment
Baan Business Process Controls

• Create / Maintain Suppliers

• Prepare Purchase Order
• Receive Goods from Supplier
• Enable Payment

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 Purchase to Payment
Baan Business Process Controls

Create/Maintain Suppliers

• Identify Suppliers to create/maintain

• Communicate performance requirements to Supplier
• Create and Maintain Suppliers in Supplier Master

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 Purchase to Payment
Baan Business Process Controls

Create/Maintain Suppliers
Example Baan Controls
• Suppliers are classified by the mandatory status field set
within Baan and include the following:
– Actual - Purchase inquiries, purchase orders, and contracts can
be created
– Potential - only purchase inquiries can be created
– Purchase Entry Blocked - purchase order cannot be created but
current orders can be processed and paid
– Payments Blocked - payments cannot be processed
• The supplier master session has edits and validations to
ensure accurate data with field level validations against other
Baan tables
• The supplier master session has mandatory Baan fields that
help ensure complete supplier master data input.
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 Purchase to Payment
Baan Business Process Controls

Sub-Process: Prepare Purchase Order

• Create Purchase Orders

• Transmit Order to Supplier
• Resolve Order Issues with Supplier
• Modify Purchase Order
• Monitor Open Order Status

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 Purchase to Payment
Baan Business Process Controls

Example Baan Controls

• Baan is configured for different purchase order types,
including drop shipments, subcontracting and collect orders.
• Access to purchase order sessions is established (Maintain
Purchase Order)
• Controls are available to determine whether back orders are
allowed. This is established at the supplier level.

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 Purchase to Payment
Baan Business Process Controls

Sub-Process: Receive & Put-Away

• Goods are received, inspected and recorded into inventory.
• Reject / Hold Shipment
• Move Material into Quality Control
• Move Material into Unrestricted Stock

Example Baan Controls

• Control of the Maintain Receipts session. In this session
data is entered for supplier, order number and actual quantity
received
• Review of Non-Finalized Reports

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 Purchase to Payment
Baan Business Process Controls

Sub-Process: Enable Payment

• Receive Supplier Invoice

• Process Supplier Invoice
• Resolve pricing and quantity differences
• Generate Supplier Payment
• Send payment to Supplier

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 Purchase to Payment
Baan Business Process Controls

Example Baan Controls

• Automatic matching requires purchase orders to

automatically link to receipts, within specified tolerances, to
invoke payment.
• Baan performs three-way match between the Purchase
Order, Receiver and the Invoice based on quantities and
amount.
• Evaluated Receipt Settlement

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 Purchase to Payment
Baan Business Process Controls

Example Baan Controls

• Acceptable tolerances for price differences between the
purchase order price and the supplier invoice are established.
• Items not within tolerance threshold must be approved by the
appropriate individual in the Approve Price Differences
session.
• Disputed invoices are defined by blocking codes to identify
reasons for non payment.
• Matched Invoices within tolerance thresholds can be
automatically released for payment
• Non-Finalized Reports can be reviewed for reasonableness
of transactions.

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Order to Cash
Baan Business Process Controls

Create / Maintain Customer

Enter / Authorize Sales Order
Review Credit
Manage Delivery Schedule
Pick, Pack and Ship Orders
Billing and Cash Receipt

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 Order to Cash
Baan Business Process Controls

Sub-Process: Create / Maintain Customers

• Customer maintenance requests
• Create and maintain customer master

Example Baan Controls

• Define the status of the customer:
- Normal: Relationship with customer is stable
- Doubtful: Relations with customer are questionable
- Blocked: Relations with this customer are on hold
- Prospect: Status given to a potential customer

• Control accounts are defined in the financial customer

groups.

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 Order to Cash
Baan Business Process Controls

Sub-Process: Enter / Authorize Sales Order

• Order Entry
• Delivery of goods
• Invoicing the order
• Closing the order

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 Order to Cash
Baan Business Process Controls

Example Baan Controls

• Series in Order Numbering sales order parameter allows the user to
attach meaning to a given range of order numbers (e.g. all return
orders could begin with a “9”)

• An order type is a user-defined procedure for processing orders,

and is used at sales order entry to define what procedures (steps)
are required to process the sales order. All sales order types must
include mandatory steps for sales orders:
- Maintain Delivery
- Print Sales Invoices
- Process Delivered Sales Orders

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 Order to Cash
Baan Business Process Controls

Example Baan Controls

• All customer credit limits are systematically checked for all orders
during order processing.
• Parameter “Block if Credit Limit Exceeded” can be set to ‘YES’,
which will block an order if the customer’s credit limit has been
exceeded.
• Parameter “Signal if Credit Limit Exceeded” can be set to ‘YES’,
which will signal when a customer’s credit limit is exceeded.
• Only authorized personnel have access to release sales orders held
as a result of credit blocking

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 Order to Cash
Baan Business Process Controls

Example Baan Controls

• System parameter Signal if Invoice Overdue can be set to
‘YES’, which will signal the user if the customer has overdue
invoices
• Access can be restricted to input and maintain order types.
• System parameter Block if Invoice Overdue can be set to
block sales orders from further processing until overdue
invoices are resolved.

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 Order to Cash
Baan Business Process Controls

Sub-Process: Pick, pack and ship orders

• Warehouse receives order requirements

• Orders are picked, packed, and loaded

• Enter order shipment information in the system

• Ship orders

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 Order to Cash
Baan Business Process Controls

Example Baan Controls

Through the Print Pick List session, Baan generates pick lists by
different criteria:

• customer
• order
• location
• planned delivery date
• warehouse
• project
• item
• route
• container

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 Order to Cash
Baan Business Process Controls

Example Baan Controls

Through the Generate Outbound Advice session, releases to
the shipping dock can be made by the following criteria:

•Customer number and priority:

•Order number
•Delivery date
•Project
•Item
•Warehouse
•Route

The Release Outbound or Maintain Deliveries sessions

relieves inventory, depending on location control settings.

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 Order to Cash
Baan Business Process Controls

Subprocess: Bill & Collection

• Process invoices
• Send invoices to customers
• Process receipts
• Update customer accounts
• Collect and monitor customer accounts

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 Order to Cash
Baan Business Process Controls

Example Baan Controls

• Through the Print Sales Invoices session, Baan may process
invoices based on:

– Company
– Customer
– Sales Order number
– Order number
– Invoice amount

• Through parameters, control over reminder notice intervals

may be established.

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 Order to Cash
Baan Business Process Controls

Example Baan Controls

• Maintain Aging Analysis is used to report on aged receivables
• Customers with delinquent accounts can be blocked from
placing additional orders by using the Doubtful or Blocked
status.
• Reasons for blocking the order and method of resolution can
be attached to the invoice.
• Non-Finalized Reports are reviewed to verify that the
information is correct before finalizing any batches.

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