Using SAP R/3 To Teach Fixed Asset Accounting And Business Process Reporting

Abstract

This paper describes a simulation model specifically for the Financial Accounting Information Systems course – an SAP enabled course for junior Accounting majors.  Supporting and measuring the Supply Chain through technology is a key goal of Accounting and should therefore be reflected in an Accounting curriculum.  It will assist students to learn both the benefits, and costs, involved with implementing ERP software.  The purpose of this case is to present students with a set of business scenarios, and allow for the students to make educated and knowledgeable decisions using the SAP R/3 software.  The scenarios will act as a simplified replication of the business environment; thus, they will provide the students with an integrated learning experience.  Students make business decisions to ensure the profitability and cash flow of their respective product lines.  While making these decisions, students participate in the application and analysis provided by IDES, the simulated company integrated into the SAP system.  Eventually, they will need to justify the existence of their division by presenting profitability analysis.  To provide a “learning-by-doing” experience, the scenarios will be used to demonstrate the reporting functionality within IDES.  Today’s global economy is putting a premium on the ability of students to evaluate a broad range of decisions in collaboration with adaptive supply chains.  A critical component of the evolving accounting curriculum lies in the ability to extend students beyond the numbers to evaluate the effective and efficient delivery of these supply chains.  This paper includes our Fixed Asset Explorer Scenario, as well as a Capital Budgeting Analysis using Microsoft Excel.