Internal Control Of Procurement Process Under SAP Environment

Procurement is an important link of enterprise logistics activities, and the effect of procurement cost savings influence on profit multiply exists. Currently, there are serious defects on the process of procurement and internal control system, which has lead to a lack of specification on the procurement business. Along with the development of modern information technology and management theory, many new internal control problems on procurement business appeared again. Internal control plays an important role to ensure enterprise economic activity effective, and a reasonable and perfect procurement internal control system has resulted in the cost reduction and became the guarantee to realize maximum profit. Due to that the procurement internal control is not proper or restrictive; bribery and corruption are numerous, which has not only shown the loss of morality but also the weakness existing on the procurement internal control. Internal control as an advanced management system in modern enterprise management plays an important role.In the meantime, as the overall enterprise management, SAP is not only a set of software, but also a reflection of management ideas and concepts, and it is the powerful tools to realize the modernization as well as scientific management. From the data announced by the Economic and Trade Commission,85 percent of the enterprise has basically achieved management information systems such as SAP, which has not only made finance and business better combined, but also results in a new change of the enterprise's internal control environment. With material purchasing, materials management function, the MM module improves the efficiency of procurement internal control procedures, and clarify the key point as well as riskof internal control at the same time. But it will also brings the changes of internal control environment, and new questions about IT technology.In addition, as AB gasoline Co., LTD. for example, on the one hand, it is due to the gas company business scale is throughout the country, and it is typical in the trading company, in which the procurement plays an important role. Trough the research on the large-scale and typical company's procurement and internal control, the characteristic and risk of procurement internal control can be visible to a certain extent. Meanwhile, AB gas Co., LTD. is the enterprise of one of implementing SAP system, and the MM module can be more intuitive and clearly reflects internal control characteristics of procurement procedures. From the success experience and enlightenment, we can see the specific measures in improving internal control procurement procedures under SAP environment, which can be the valued experience for other companies.This thesis can be divided into six parts:Firstly, it introduces a position of the background, significance, current study situation, methods and framework of the research.Secondly, it gives a introduction of the internal control, management informationization, SAP system and MM module related theory. Separately from the design principle, implementation of internal control, the concepts as well as development stages of enterprise management information, SAP system concept, MM module functions related theory.Thirdly, it mainly analyses the SAP MM module applications in AB gas Co., LTD. respectively from the business development status as well as organizational structure.Fourthly, it mainly includes the internal control analysis of procurement procedures under AB gas Co., LTD. At first, it expounds the internal control points under MM module of SAP system, from identifying needs to the final payment; Secondly, through the analysis of the internal control procedures, it summarizes how to strengthen internal control measures of procurement process under MM module in SAP system; Finally, it summarized the result of improving internal control measures of procurement. Fifthly, it mainly includes the successful experience of procurement internal control under AB gas Co., LTD. Through the analysis of the above four parts, it summarizes the issue that can be absorbed about the procurement internal control of AB gas Co., LTD, based on which, a generalization of promotion will be needed.At last, there is a summary. From the combination of theory and practice from above five parts, the issue of the internal control of procurement process under SAP environment has been summarized.Case studies are the method for the research mainly. It starts from the specific case and procedure instead of the pure theory of internal control, and makes the result of study more simple and understanding.