ACCOUNTING, LEARNING AND ONLINE COMMIUNICATION

ACCOUNTING, LEARNING AND ONLINE COMMIUNICATIONSTUDENT ID – 12128273

STUDENT NAME – RAVINDU YASHEN RANASINGHE

BLOG LINK - MY BLOG

ASSIGNMENT 1 STEP 3 – INTRONDUCTION OF MY COMPANY

In this unit I have assigned to a company called SAP. This Company supplying software and services to customers. In 1972, five entrepreneurs started SAP in Germany. They had a vision for the business potential of technology.In the beginning with a one customer, SAP create a path that would for information technology era, but also for information technology for businesses. As a main fact this company known as ERP SOFTWARE. Now for 47 years and more than 400,000 customers stronger are gained, more than ever, SAP is the first turning point IT industry.

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ACCOUNTING, LEARNING AND ONLINE COMMIUNICATION

SAP is a leading company in software and services in the global market which is helping to business and industries. According to statistics 77% of world transaction using sap systems. Their Internet of Things (IOT), machine learning and advanced analytics technologies help turn customers’ businesses into intelligent enterprises. Their end-to-end suite of applications and services enables our customers to operate profitably, adapt continuously, and make a difference. With a global network of, partners, customers, employees.SAP helps the all industry and people for better lives. 

Market position -

SAP is market share leader in: o Enterprise resource planning (ERP) Analytics Supply chain management Human capital management Experience management and customer experience Broadest portfolio of modular and suite solutions available on premise, in the cloud and

hybrid

Top Cloud Vendor • Cloud user base: ~207m users • SAP Cloud Platform: choice across hyper scale cloud vendors (Alibaba, Amazon, Google, and Microsoft) • Largest cloud portfolio: >100 solutions for all lines-of-business (LOB) as well as business suites • >125m users on Success Factors • 71 datacenters in 34 locations in 16 countries • SAP Digital for online SAP and partner offerings >160,000 orders from >144 countries

SAP VISION

“To help the world run better and improve people’s lives. We innovate software and technology solutions that empower our customers to become intelligent enterprises and create a better and more sustainable economy, environment, and society.”

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ACCOUNTING, LEARNING AND ONLINE COMMIUNICATION

Revenue of the SAP most revenue earn by cloud subscriptions and support from contracts that permit the customer to access specific software solutions . Software revenue results from the fees earned from selling or licensing software to customers. In 2018 €20,622 million revenue earned by Cloud and software. It is increased my 5% compare to 2017.

In 2018 Cloud subscriptions and support revenue increased €4,993 million which is 32% higher than 2017.

According to the financial reports Impacted by currency headwinds, SAP software revenuedeclined by €225 million from €4,872 million in 2017 to €4,647 million in 2018.

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ACCOUNTING, LEARNING AND ONLINE COMMIUNICATION

On the other hand SAP is a regional company. Because of that they had categorized the revenue to three main regions. These are EMEA, APJ and AMERICA.

In EPEA region in earn 2018 €11,104 million in revenue compare to year 2017, which was 45% of total revenue .This represents a year-over-year increase of 7%.

In AMERICA 2018, total revenue was gained in the Americas region is 39% from total revenue compare to year 2017.

APJ Region in 16% of our total revenue was generated compare to year 2017. Total revenue in the APJ region increased 5% to €3,891 million.

When we talk about company cost is an important thing which connects directly to company’s behavior. According to SAP cost can be demonstrate in few sections. They are and Software, Cost of Services, Cost of Cloud, , Sales and Marketing Expense, Research and Development

Expense General and Administration Expense.

Cost of cloud software in 2018, the cost of cloud and software increased €4,160 million which is 17% higher than previous year. To the strength of customers demand they spending €408 million year over year.

When talk about the cost of services there are some services like cost of consulting, the cost of bought-in consulting and training resources, premium services and etc. On behalf that, cost of services increased 5% to €3,302 million more than the previous year.

In SAP, R&D expense as a percentage of total revenue was increased to 14.7% in 2018 which higher than 2017.

Their sales and marketing expense decreased from €6,924 million in 2017 to €6,781 million in 2018.

SAP General and administration expense increased from €1,075 million in 2017 to €1,098 million in 2018.Which is 2% increasment.

In this company when I research about financial debt I had found current and non-current debts. Currents debts are €768 million and €10536 million non-current debts are carrying by this company. Total debts are €11304 million.

According to these information this company increased their revenue in 2018 more than the other years and also they increased their overall expenses to other year expenses.

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ACCOUNTING, LEARNING AND ONLINE COMMIUNICATION

When I was searching about this company, annual reports illustrate the financial position of the company. In 2018 SAP had €16,620 million current assets. Which is 39.30% higher than 2017.Non-current assets are €34,871 million which is 14% higher than 2017.Total assets are €51,491 million which is 21% higher than year 2017.

When talk about liabilities in 2018 SAP had 10,481 current liabilities which is affect to the company in short term is increased by 2.6% higher than year 2017.Non-current liabilities are €12,133 million which affect to the company in long term is 79% higher than year 2017.

Total equity is € 28,877 which is higher than 13% according to year 2017.

According to cash flow statement, net cash flows from operating activities €4,303 million

which is 14% low than year 2017. Net cash flows from investing activities €3,066 million which is 175% greater than year 2017. Net cash flows from financing activities €3,283 million which is 3.6% lower than previous year.

When I researched about this company I found one major challenges facing companies which rely on SAP is integration. Without proper integration between SAP applications and third party applications companies fail to fully automate and optimize their business processes.

As per the conclusion these are KCQS I found in this company and I mention the all the things that what I think most important to know about company in different ways. Mainly in financial background of this company.

Resources:-

Company Main Web site: - Company info

Articles: - Use full tips

Company history: - Sap History

Annual Reports: -

2018 - SAP 2018 ANNUAL REPORT 2017 - SAP 2017 ANNUAL REPORT 2016 - SAP 2016 ANNUAL REPORT 2015 - SAP 2015 ANNUAL REPORT

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ACCOUNTING, LEARNING AND ONLINE COMMIUNICATION

ASSIGNMENT 1 STEP 5 UNDERSTANDING THE GAME

Accounting is a game? What does mean? Yeah I understood what it is. Every game have rules so same as the accounting have rules. To play this game we need to know and follow every single rule to play this game nicely.

In company there are two sides of information. Which are the information need to company managers, directors, employees and etc. And other information are need to people who are in outside of a company. On this situation need to provide information in different ways. Because of that accounting is a game. Showing different background little bit hard and confusing.by the way that is the hardest truth in the real world. When we look through a company, roles like manager need make decisions among the company to make it profitable and stable company. Because of that they need to know the company behavior to develop it in the future. Because of that companies are make financial statements to judge their companies.

On the other hand people who are in outside the company, if they want to judge accompany they mainly focus in financial reports but company need to know they are providing the most

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useful information to public.So this reason all need to know is rules and we need to follow the rules.

Apart from that every different country each different accounting standards. By the way all need to follow GAAP (Generally acceptable accounting principles) but some rules in GAAP change gradually. By the AASB setting some standards for companies to make their financial reports. But these standards not use by lots of business because these standards use by large companies and industries. So that demonstrate not of all following the general rules because they are following their own rules in financial decisions.

By Viewing this chapter, It illustrates some rules do not need to follow.Yeah it makes sense. When running a business we do not need to general rule to develop of business. We need to focus in other extra concepts and ways to develop a business. By using various paths, knowledge, experiences we need to gain business not only using general standards. This was explain perfectly in chapter 2 which was give me some extra idea about growing a business in different way.

According to chapter 2 accrual accounting was explained perfect with examples and it is understandable to everyone who read that carefully. To me accrual accounting is concept that transaction or activity which was happening without money exchange. But it is different from customer to business because some time customer will have the service or good with exchange money. On the other business have the money before customer get the goods or services. It is and interesting part I knew from the chapter 2.

When a running business information is most important than other facts. Because it helps to decision making of a company. Without having quality, faithful information it will be very effective for company development and it’s directly affect to the financial behavior of company. Because of that reason we need to dispose wrong and unfaithful information from a business or company and need to filter good information before to decide decision making.

As per the conclusion these are key concepts I had new from this chapter which is very helpful for all businesses for decision and for some when over view on business about its’ behavior.

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ACCOUNTING, LEARNING AND ONLINE COMMIUNICATION

ASSIGNMENT 1 STEP 5 INTRODUCING FINANCIAL STATEMENTS

From this chapter taught me about heart of the accounting. In the accounting there five elements. Assets, liabilities, expenses, equity and income are the five elements of accounting. By using this five elements accounting demonstrate four financial statements. They are income statement, changes of equity, balance sheet and cash flow statement. Without these statement no one cannot learn about accounting. All transaction in company need to be keep in above mentioned statements. It’s not easy, it is much hard work than think.

Income statement is the financial statement which is measure the profit and lose all over one year. This statement include the income and expenses which was done my business all over the year.

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ACCOUNTING, LEARNING AND ONLINE COMMIUNICATION

Balance sheet, the statement which shows equity, assets and liabilities to last day of the financial year of a business. It included current and non-current liabilities, current and non-current assets and equity for last day.

Changes of equity, shows the changes in company shares, dividends and etc. in all over the year.

Cash flow statement is the statement that demonstrates changes of cash all over year which are the activities done by business.

Assets + Expenses = Equity + Revenue + Liabilities

From above equations illustrate the all these statement are combined together from one to the other. Its mean one transaction at least include two of above statement.

When we make decision about company or a business we need to follow, skim and research about these statement to get knowledge about the financial behavior of a company.

As per the conclusion, the chapter is we organized and very useful to everyone to understand using that example which was mention in every paragraph without any issue. As I previous accounting student, this chapter was very useful to me to revise km knowledge about financial statement without being worry.

STEP 6 – FEEDBACK TO OTHERS

When I doing this assignment I follow and reviewed some one’s blogs. From that blog I choose top 3 blog which I was think very useful.

1. Megan Main - BLOG LINK - MEGAN MAIN

She done her work very tidy and it very easy to understand. I looked through her account prior to do my assignment. To my understand her work is perfect.

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ACCOUNTING, LEARNING AND ONLINE COMMIUNICATION

2. Amy Macclelland - BLOG LINK - Amy Mcclelland

First when I looked into her blog I was impressed with her work. Very tidy and understandable .When look into it took my eyes with it colorfulness .Explain all the things and it makes me to make my assignment easily.

3. Daniella Davenport - BLOG LINK - DANIELLA DEVANPORT

Very colorful and perfectly done the job. It helps me to collect information to do my assignment. Well categorized work.

Studiosity feedback When I was finished my draft I upload it to studiosity t correct my draft. By the way they give me feedback from few was great to my work stuff because they show me the thing that I need to correct in my draft. As student I appreciate that service in my side. Because English is not my second language so behalf this I need help when I am writing essay, KCQS and Etc. Studiosity helps me in that case so I do not need to worry about when I’m doing my university work.

Behalf of that when I’m using studiosity it is very user friendly. It’s not very hard to use for beginners. That is main thing I appreciate as application should have.

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