1 right solution, right time, right price sales order processing

Right Solution, Right Time, Right Price

Sales Order Processing<Site>

AgendaI. General Information for Sales Order ProcessingII. Sales InquiryIII. QuotationsIV. Sales OrdersV. Inventory/Availability ReportingVI. Consignment OrdersVII. Reports/ListsVIII. Complaints ProcessingIX. Pro-Forma Invoice CreationX. Questions / Review

I. General Information for Sales Order

Processing

Organizational Elements Quick Review

<Client>SemiconductorGroup (YSG)

Drives

GeneralMotion

MachineTool

ServiceHouse

Accounts(05)

Columbus

Switch

DISTRIBUTIONCHANNEL

DIVISION

PARTS SALESSERVICE ORDERREPAIR ORDER

SALESORGANIZATION

Sales Area

PARTS SALESSERVICE ORDERREPAIR ORDER

SPECIAL REPORTTOTAL PARTS SALESTOTAL SERVICE ORDERSTOTAL REPAIR ORDERS

<Client> SalesOrganization

(0010 – <Client> Americas)

DistributorDistribution

Channel(02)

DirectDistribution

Channel(01)

Business Processes Cycle

QuotationPre-Sales Activities

Sales Order ProcessingSales Order Processing

Inventory SourcingInventory Sourcing

DeliveryDelivery

BillingBilling

PaymentPayment

Invoice

I. General Information for Sales Order Processing

During sales order processing, the system carries out basic functions, such as:

• Determines Pricing• Decides Delivery Requirements• Decides Requirements for creating invoices• Updates Document Flow• Updates Sales reporting• Carries out availability check

Basic Functions Within Sales Order ProcessingBasic Functions Within Sales Order Processing

Sales DocumentsSales DocumentsI. General Information for Sales Order Processing

There are four distinct groups of sales documents:

• Pre-Sales Activity: Inquiries, and Quotations • Sales orders • Complaints, encompassing Subsequent Delivery Free of Charge order,

Credit /Debit memo requests and Return Orders.

There are three distinct control elements within a sales documents:• Order type controls: Number range for the order

Incompletion procedure at the headerOutput determination procedureItem number incrementDocument pricing procedure

• Item category controls: Should pricing be carried outIs item to be invoicedWhich fields appear on the incompletion

logPartner determination

• Schedule item category controls:The correct A/R account cost will hitEspecially important in internal order

processing

From the sales document, you can create and process deliveries and billing documents.

In addition, some sales documents, such as rush orders, automatically trigger the creation of delivery documents.

All sales documents have basically the same structure.

They are made up of:• Header • Line Item• Schedule Line

How Sales Documents are Structured How Sales Documents are Structured

Sales DocumentSales Document

Header

Item 1Schedule line 1

Schedule line 1

Header dataHeader data

The general data that is valid for the entire document is recorded in the document header. For example,

•Number of the sold-to, ship-to party•Purchase Order•Sales Area Data•Payment Terms•Pricing elements for the entire document•Order Status •Industry

(add. data A–customer group 1)•Application

(add. data A–customer group 2)

Header

Schedule line 1

Sold-to party: 1000006 Req. Delivery Date: 7/28/00Ship-to party: 1000006

Currency: USD

Item dataItem data

Whereas data in the document header applies to all items in the document, some data applies only to specific items or can be overridden by the item. This data is stored at item level and includes the following:

• Material number and data• First delivery date• Reason for rejection• Partner determination (an alternative ship-to

party or forwarding agent (carrier) can be defined for a particular item)

• Item level text• Item level status• Plant and storage location specifications• Pricing conditions for the individual items• Item Category

Header

Item 1

Item 2

Schedule line dataSchedule line data

The schedule line contains all the data that is needed for a delivery.

For example, a customer orders 20 units of a particular material which you enter as one item in the sales order. However, you can only deliver 10 pieces now and the remaining 10 pieces next month so you will confirm two delivery dates. The data for these deliveries (dates, confirmed quantities) are stored in two separate schedule lines. (Automatic line splits)

In sales documents where delivery data is not relevant, for example, contracts, credit and debit memo requests, the system does not create any schedule lines.

Data recorded in the schedule lines includes the:•Schedule line quantity•Delivery date•Confirmed quantity

Header

Schedule line 1

Data From Master Records When you create a sales document without referring to a preceding document, the system copies the following data from the master records:

• Data about the sold-to party and other partners from the customer master records

• Item data from the material master record

• Data from any relevant customer-material information records (customer specific part numbers)

Data from Preceding Documents If you create a sales document with reference to a preceding document, the system copies nearly all the data from the preceding document, depending on copy control setup for document combinations being referenced.

The data in the preceding document originally comes from the customer and material master records.

Because the data is copied from the preceding documents into the sales document, any changes that have been made to the master data records since the preceding document was created are not included in the sales document.

If, when you create with reference, you add another item to the document that was not in the preceding document, the system determines the data for the new item from the master records, such as the material master or info record.

What is the difference between an Inquiry and a Quotation?What is the difference between an Inquiry and a Quotation?

Inquiry – Non-Binding AgreementFor example, a customer inquires whether we have a certain product in our warehouse, how much it will cost, or whether the product will be available for a certain date. The inquiry will not be sent to the customer.

Quotation – Binding Agreement from <Client>A quotation presents the customer with a legally binding offer for product or service within certain fixed conditions.

Reporting and Analysis in SAP R/3

• Standard Reporting

– Lists documents and master data

– Provides analysis through sorting and totals

– Displays details

• List Processing

– Lists selected documents

– Allows you to branch to documents and return to list

– Helps organize work

Sales Document Icons

Sales and Distribution

These Icons appear on most Sales Documents

General Icons

Status Overview

Display Sales Summary

Display Sold-to Party

Header Output View

Reject Document

List Sales Orders

Display Item Detail

Create Item

Delete Item

Item to top

Display Document Flow

Check Item Availability

Page Down

New Session

View Availability

Item Conditions

Sales Order Processing

What 3 organizational elements make up the Sales Area?

Name the 2 distribution channels?

Name the 7 different division?

Name 2 things order type controls?

II. Sales Inquiries

Inquiry

II. Sales Inquiries

•Used to store pre-sales data.

•There are a wide range of functions defined for managing and monitoring these documents.

•Information gained from these documents can be used to gauge different market, sales, inventory trends.

•Each document has a validity date.

Creating a Sales Inquiry

Menu Path

Logistics >> Sales and Distribution >> Sales >> Inquiry >> VA11 - Create

Transaction Code: VA11

Step 1 – Initial Screen

a. Enter IN for Inquiry Type

b. Click on the Enter button.

Step 2 – Completing the Inquiry

a. Enter the Customer Code for the Sold-to party. You can also use the Matchcode button to search from a list.

a. Enter Sold-to Partyb. Ship-to Party will default in from

the customer master. If there are multiple ship to partners attached to a sold to you will get a selection box.

a. Enter Sold-to Partyb. Ship-to Party will default in from

the customer master. If there are multiple ship to partners attached to a sold to you will get a selection box.

a. Enter Sold-to party. b. Enter the Ship-to Party

c. Enter the Requested Delivery Date and the validity dates.

a. Enter Sold-to party. b. Enter the Ship-to Party

a. Enter Sold-to party.

b. Enter the Ship-to Party

d. Enter Material Numbers or select from a list by using a matchcode search. Enter the requested order quantity.

a. Enter Sold-to party.

b. Enter the Ship-to Party

d. Enter Material Numbers or select from a list by using a matchcode search. Enter the requested order quantity.

Schedule Lines w/inventory

Full quantity is available for customers request date.

Schedule Lines w/inventory

Full quantity is available for customers request date.

Schedule Lines w/partial availability:

75 in stock75 coming in 8/16100 coming in 8/23

Schedule Lines w/partial availability:

75 in stock75 coming in 8/16100 coming in 8/23

III. Sales Quotations

Quotation

II. Sales Inquiries

•Used to store pre-sales data.

•There are a wide range of functions defined for managing and monitoring these documents.

•Information gained from these documents can be used to gauge different market, sales, inventory trends.

•Each document has a validity date.

•A Textual description can be used instead of the material #.

•A quote is a legally binding declaration to the customer containing material specifications, prices and terms of delivery/sales.

a. Enter Quotation Type

QT = Sales QuotationAS = Service Quotation

a. Enter Quotation Type

QT = Sales QuotationAS = Service Quotation

Override Application or Industry:

a. Menu Path: Go-to – Header To change the industry or application for special projects that deviate from the customer master default.

Override Application or Industry:

a. Menu Path: Go-to – Header To change the industry or application for special projects that deviate from the customer master default.

Facilitator Demonstration/ReviewFacilitator Demonstration/Review

1. Creating an Inquiry

2. Creating a Quotation

a. With Reference to Inquiry

b. Without Reference to Inquiry

Inquiries and Quotations

IV. Sales Orders

Sales Order Types

Sales and Distribution

Code Order Type Code Order Type

Override Freight Forwarder (Carrier) by line item:

a. Menu Path: Go-to – Item - Partners Select the match code on the forwarding agent partner no. field. Use Account group Z015 (shipping/freight).

Override Freight Forwarder (Carrier) by line item:

a. Menu Path: Go-to – Item - Partners Select the match code on the forwarding agent partner no. field. Use Account group Z015 (shipping/freight).

Name the 2 distribution channels?

Name the 7 different division?

Where do you change the freight carrier?

Where does the application and industry default from and how do you change?

What is the SAP term for Item Master?

What is the condition type for Material Price?

What is the condition type to override Material Price?

What is the search criteria you will use to find the forwarding agent (freight carrier)?

Where does the application and industry default from and how do you change?

V. Inventory and Availability Reporting

Inventory and Availability

Availability CheckInward movement

of goods

Outward movementof goods

PurchaseOrder

ProductionOrder Firm

PlannedOrder

DeliverySalesOrder

Reservation

Other factors to take into account:

Safety stockStock transport ordersReplenishment lead time

Inventory and Availability

Stockon

DeliveryDelivery

OpenPurchase

Orders

OpenPurchase

Orders

Stockin

Transit

Stockin

Transit

FirmPlannedOrders

SalesOrders

ReservedInvent.

Inward Movements

Outward Movements

Time Fence / Lead-time

Replenishment

SD Available to Promise Capabilities

Open Production

Orders

Open Production

Orders

Stock OverviewStock Requirements ListAvailability OverviewWarehouse Stock

Availability Overview: Displays the availability situation for a

particular material and plant combination.

Transaction Code – CO09 orIcon from within sales order -

Enter Plant 1WEnter Checking rule A Check the W/Reqmts Quants Box

Availability Overview: Displays the availability situation for a

particular material and plant combination.

Transaction Code – CO09 orIcon from within sales order -

Enter Plant 1WEnter Checking rule A Check the W/Reqmts Quants Box

Stock Overview : Transaction Code - MMBE

Displays all stock (&stock types) of a material over all organizational levels.

Stock Overview : Transaction Code - MMBE

Displays all stock (&stock types) of a material over all organizational levels.

Stock Requirements List:Transaction Code – MD04

Displays open incoming orders (planned orders, production orders, purchase orders)and outgoing requirements (sales orders, deliveries, reservations, purchase orders)Forecast VSF is consumed by sales documents. ATP does not consider VSF.

Stock Requirements List:Transaction Code – MD04

Displays open incoming orders (planned orders, production orders, purchase orders)and outgoing requirements (sales orders, deliveries, reservations, purchase orders)Forecast VSF is consumed by sales documents. ATP does not consider VSF.

Warehouse Stock:Transaction Code – MB52Warehouse Stock:Transaction Code – MB52

Business Process Flow in SAPInvoiceDeliveryOrder

Document flow of any sales documentDocument flow of any sales document

Order 900Order 900. Delivery 80000459. Delivery 80000459. . Picking request 17951109. . Picking request 17951109. . GD goods issue: delvy 49001828. . GD goods issue: delvy 49001828. . Invoice 90000333. . Invoice 90000333. . . Accounting document 100000276. . . Accounting document 100000276

Document flow of any sales documentDocument flow of any sales document

Order 900Order 900. Delivery 80000459. Delivery 80000459. . Picking request 17951109. . Picking request 17951109. . GD goods issue: delvy 49001828. . GD goods issue: delvy 49001828. . Invoice 90000333. . Invoice 90000333. . . Accounting document 100000276. . . Accounting document 100000276

Payment

Sales documents represent transactions in the system.

They form a chain of related documents.

The entire chain of documents creates the document flow.

The system copies data from one document into another to reduce data entry and make problem resolution easier.

If you enter an order for the same customer/material combination you will get a notification.

Select “List”Select “List”

What is Document Flow?

VI. Consignment Orders

Consignment Orders

Consignment goods are goods which are stored at the customer location but which are owned by <Client>. The customer is not obliged to pay for these goods until they remove them from consignment stock.

In inventory management, the consignment stock is managed as special stock in your inventory and is assigned to specific customers. Availability check is not carried out on consignment inventory

Consignment Orders

Consignment Fill Up – Order Type KB

Consignment fill up is used to supplement or create the customer’s consignment stock.

When you ship consignment stock to the customer, you process the transaction by creating a consignment fill-up order.

The relevant quantity is removed from regular inventory in your plant and is added to special stock for the customer.

The transaction is not relevant for pricing since the consignment stock remains the property of <Client>.

Consignment Fill-Up

DeliveryGoods Issue

(Increased Stk)

Sales Sales WM

Customer Consignment Stock Created

Create Consignment Fill-upOrder Type KBCreate Consignment Fill-upOrder Type KB

Go to your Stock Overview report to view the inventory movements.

Transaction Code: MMBE

Go to your Stock Overview report to view the inventory movements.

Transaction Code: MMBE

After Product is shipped, the inventory will be moved to Customer Consignment Stock.

Consignment Orders

Consignment Issue – Order Type KEConsignment issue enables the customer to take the consignment goods from the special stock for their use or to sell.

When the customer removes consignment stock to use or sell, you record the transaction in the system by creating a consignment issue order.

When the goods issue is posted by Sales, the relevant quantity is deducted from both the customer’s special stock and your own total valuated stock.

The transaction is now relevant for pricing since the goods now become the property of the customer.

Consignment Issue

W/ref to fill-upDelivery

Goods Issue(Decreases Stk)

Billing Document

Sales Sales Sales

Consignment Orders

Consignment Returns – Order Type KR

Consignment Return is used only if you need to reverse a consignment issue.

The relevant quantity is returned to consignment inventory.

The transaction is relevant for pricing since the customer was already billed for this. A credit memo will be created.

Consignment Returns

W/ref to IssueDelivery

Goods Issue(Increase Stk)

CreditMemo

Sales Sales Sales Sales

Consignment Orders

Consignment Pick-Up – Order Type KAAny consignment goods stored at the customer’s warehouse that haven’t been used can be returned to <Client>’s warehouse with a consignment pick-up.

If the customer returns consignment stock to you, you record the transaction in SAP by creating a consignment pick-up order, similar to a return order. When the goods issue is posted, the relevant quantity is deducted from the customer’s special stock and is added back into your regular stock. Your total valuated stock remains the same since the returned stock was regarded as <Client> inventory while it was at the customer’s premises.

The transaction is not relevant for billing.

Consignment Pick-Up

DeliveryGoods Issue

(Decreases Stk)

Sales WM WM

Customer Consignment Stock depleted

Document Flow:

Menu Path – Environment – Display Document FlowIcon –

Document Flow:

Menu Path – Environment – Display Document FlowIcon –

What does a consignment issue order type do?

Is a consignment fill-up order relevant for billing?

Is a consignment return relevant for billing?

TIP: Ctrl C and Ctrl Y

What does a consignment issue order type do?

VII. Order Reporting

Reporting and Analysis in SAP R/3

• Standard Reporting

– Lists documents and master data

– Provides analysis through sorting and totals

– Displays details

• List Processing

– Lists selected documents

– Allows you to branch to documents and return to list

– Helps organize work

ZVCSO – customer or sales report can be run by:

Sales Group

Sales Employee

Distribution Channel

Material

Sold-to

Many others

The report can also be dumped into Excel to sort and modify to give to customers or the outside sales force

To do so select:

List – Save – File…

Select Spreadsheet as the format to be saved

Name the file and note the file name path

Open Excell and find your file

You may have to search for all files

A Clip of ZVSCO in Excell

ZVISO – Is an Internal Order report similar to ZVCSO that contains additional information and is run the same way

VA05 Report run in SAP by:

Sold-to

Material

Open orders

Both open and closed orders

Your Orders

VA05 lists sales orders per your selection criteria

Additional fields can also be utilized

Hidden fields can be selected

Brought over to displayed fields

And copied into the report

Documents can be referenced just by double clicking the SD doc #

This takes you into the document itself to update or view

VIII. Complaints Processing

Complaints Processing

•Return Order RE– Product being return from customer

•Credit Memo Request CR– Credit being issued without product being returned.

•Debit Memo Request DR– Debit being given to customer.

The request is automatically placed on billing block pending verification. If the credit is justified the billing block is removed by sales supervisor and a credit or debit memo is created.

Order Reason is required to help with the justification process. Additional details can be entered in the header comments text.

Subsequent Delivery Free of Charge SD – Short shipment

Credit and Debit Memos

Credit memo

Debit memo

Credit memo request

Debit memo request

Credit MemosCredit Memos

Debit MemosDebit Memos Billing blockBilling block

SalesOrder

Invoice

SalesOrder

Invoice

•Credit/Debit memo request – Order Type CR/DR

•Billing Block (release request)

•Billing Due List (Credit/Debit Memo creation)

Credit Memo Request with Reference to Invoice:

a. Enter Billing Docb. Click Selection List to select

item and quantity.

a. Enter Billing Docb. Click Selection List to select

item and quantity.

c. Select the items and quantityd. Hit copy button

e. Order reasonf. Billing block will default

g. PN00 (price override) the amount of the credit you want to issue.

How Are Returns Processed?

Returnsdelivery

Credit memoReturn request(authorization)

Accept returned Accept returned goods (Post goods (Post goods issue)goods issue)

Place in restricted Place in restricted stockstock

Credit memo Credit memo created after created after removing the removing the billing block.billing block.

Invoice

SalesOrder

Billing blockBilling block

Order reason Order reason required to create required to create Return OrderReturn Order

•Return Order Request – Order Type RE

•Return Delivery (accept return)

•Billing Block (release return request)

•Billing Due List (Credit Memo creation)

•Note: Return Order Freight – Creating a return order and want credit freight back to the customer –

the freight needs to be added at order entry. When you create an return order with reference to a prior invoice, freight that was charged on the original invoice will be copied into the return order and go all the way through billing. Or, when you create a return order without reference to a prior invoice, you are able to enter freight as a line item on the order and process all the way through billing.

IX. Pro-Forma Invoice Creation

Creating a Billing Document – Pro-Forma Invoice

Invoices will typically be created using the Billing Due List which creates invoices in bulk that are due for billing.

However, an individual billing document can be created in VF01 following the menu path: Logistics, Sales and Distribution, Billing, Billing Document, Create.

Proforma Invoices

A proforma invoice is an invoice that is generated before the shipment is made. Often the proforma invoice is used by our customers to obtain importation license when shipping overseas.

There are two methods by which a proforma invoice is generated:

• For an entire sales document—issued for the entire open order.

• For an outbound delivery—issued for just the material on a specific delivery.

Note: Data from Proforma invoices is not transferred to Accounting.

Creating a Proforma Invoice from a Sales Document

From the drop down menu, choose the billing type ‘Proforma for Order’.

Enter the sales order document number. Hit enter.

Creating a Proforma Invoice from a Sales Document

The material on the order will be listed.

To finish processing your proforma invoice, click on the Save icon.

Once the invoice has been generated, the document number will appear at the bottom of the screen.

The document will automatically print to the user’s designated printer.

Sales and Distribution Lists

PR00 Material Pricing

Availability checking within Inquiry

Delivery Due List

Delivery Groups/Ship Complete – Shipping tab

Free Delivery FD – (Sample, Shows, Warranty) Schedule item category

Proforma Invoice Creation

Errors – Information, Warning, Error

Order Reason – Non G/L Sales Consignment

What information is required when entering a return order request?

What process needs to take place for a Credit Memo to be generated from a Credit Memo Request?

What does a rush order (SO)do different then a standard order (OR)?

Sales Orders

Hands-On Order Processing Exercise

1 right solution, right time, right price sales order processing

header line item schedule

presales activity

document header

order type controls

billing documents

creation of delivery

outis item

header datathe general

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