Fitter’s current sales order accounting processes involves recording sales in each division and then periodically sending certain sales data to Accounting for invoicing and financial reporting. Complete sales order data are retained in each sales division for business analysis purposes.
Assume that different divisions of the Yummy Foods Company buy NRG-A and NRG-B bars from each of Fitter’s sales divisions. To complicate matters, some divisions of Yummy buy store-brand bars from Fitter. (Yummy owns convenience store outlets.) Fitter management has asked for an analysis of the Yummy Foods account. They want to determine if there are opportunities to expand the company’s relationship with Yummy; however, they want to assess the profitability of the relationship before proceeding. The management team wants to see what products each division sells to Yummy, how much is sold, and on what terms. Assume that in Fitter’s current system, all the required data are available only at the sales division level. What steps will be needed to pull this companywide analysis together? (Review how each division sells its products.) Do you think a sales division manager will be enthusiastic about sharing all data with his or her counterpart in the other division? Do you think there might be some reluctance? Why?