erp process overview

7/30/2019 ERP Process Overview

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Sales Order Management

SAP Best Practices for Retail



© 2011 SAP AG. All rights reserved. 2

Purpose, Benefits, and Key Process Steps

Purpose

Sales Order Management describes a Business-to-Business (B2B) scenario: you sell to your known customer(s)(with master data record), who in turn sell(s) the merchandise to their customers (wholesale function). Inaddition to sales order processing functions, this scenario also includes the following process steps: credit limitcheck and availability check, consignment, backorder processing, customer contract, product catalog, onlinestore, customer billing document, payment handling, and subsequent settlement.

Benefits The entire document chain - presales phase, order, follow-up actions - forms a document flow or history. The

flow of data from one document to another reduces manual processing and facilitates problem solving.

Backorder fulfillment from returns stock allows you to manage how returns are to be allocated for backordersand stock transfers: If the article is unused and can be readily shipped again, then it is quicker and more cost-effective to use it to fill sales backorders or stock transfer orders rather than to move it back to unrestricted-usestock and for subsequent picking and reshipment.

Key Process Steps Creation of Standard Orders, Rush Orders, Third-Party Orders

Backorder Processing and Rescheduling

Creation of Customer Billing Documents

Payment Handling

Customer Returns Handling

Subsequent Settlement

Customer Consignment Handling

Customer Contract Handling

Product Catalog Handling




Required SAP Applications and Company Roles

Required SAP Applications

SAP SAP enhancement package 3 for SAP ERP 6.0

Company Roles

Retail Sales Person

Retail Store Manager

Retail Warehouse Clerk

Accounts Payable Assistant

Accounts Receivable Assistant




Process Flow DiagramSales Order / Backorder Processing and Rescheduling

R e t a i l

W a r e h o u s e C l e r k

R e t a i l S t o r e

M a n a g e r

R e t a i l S a l e s

P e r s o n Standard Order/

Rush Order/Third Party

Order

Analyze SalesDocument

Rescheduling

Backorder Processing andRescheduling

Monitor theReturns Stock

after Distribution

DirstibuteReturns Stockto Backorders

RescheduleSales

Documents

Credit LimitCheck

AvailabilityCheck

Run CATTMonitor the

Returns Stock




Sales Order: Alternatives

A Sales order is a customer request to the company for the delivery of goods or services at a certain time.

The request is received by a sales area, which is then

responsible for fulfilling the order.

Standard order:

Merchandise will be collected or rather delivered and invoicedafterwards.

Rush order:

Merchandise will be collected or rather delivered imme-

diately and invoiced afterwards.

Third-party order:

Merchandise will be delivered directly by the vendor to the

customer. The ordering enterprise invoices to the customer

Cash sales order:

Merchandise will be collected and payed immediately.


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Options in the order creation - 2

The credit limit check is a check, whether

a customer has already covered his credit limit

and which consequences are connected

with it (warning, fault, delivery block).

This check can be carried out in every sales document.

The delivery of a product to a delivery date is only possible

if this product is available for all processing steps to be

carried out before the delivery.

To guarantee this the availability check is used in the

order.



Backorder Processing

Backorder processing with a

selective list for sales

documents

Select and process

backorders for a particular

article

Manual processing

Assignment of the ATP-

quantities

Check the returns stocks on goodsnot damaged and not used

Listing of relevant requirements for sales documents



Rescheduling

Selection of the open sales document

Positions of the selected article

and

availability check

Analysis of the last rescheduling run



“Customer billing document” is an umbrella term

for invoices, credit memos, debit memos, pro-forma invoices, and cancellation documents.

Billing represents the final processing stage for a

business transaction in Sales and Distribution

Customer Billing Document



Process Flow DiagramCustomer Billing Document

R e t a i l S a l e s P e

r s o n

GeneratePreceeding

Documents viaECATT

Create BillingDocumnet Online

on the basis of the Outbound

Delivery

IncomingPayment in FI

GenerateCollective billingDocument in the

Background

Alternative 1

Alternative 2



The milestone billing in the billing plan is used for

the payment processing of a deposit.

Milestone billing means, that the total value, which

should be invoiced, is divided in several partialamounts in the billing plan (percentage /

absolute), they are to be paid at certain dates.

A milestone billing is a schedule with particular

billing dates.

Payment Handling



Process Flow DiagramPayment Handling

A c c o u n t s R e c e i v a b l e

A s s i s t a n t

A c c o u n t s P a y a b l e

A s s i s t a n t

R e t a i l S a l e s P e r s o n

Down PaymentAgreement in

the Sales Oder

Print the FinalBilling

Document(Screen)

IncomimgPayment for theDown PaymentRequest in FI

Clear thePayment thathas already

been made in FI

DownPayment

request in SD

Print the DownPaymentRequest(Screen)

Final Billing withDown PaymentClearing in SD)

IncomimgPayment in FI



There are various reasons for returning goods:- The goods are damaged in some way so that they cannot

be transferred back into normal stock, but have to bereturned to the vendor.

- The customer did not like the goods and wants to replacethem. The goods can, however, be reused either fully or

partially.- The customer did not like the goods and wants their money back or a credit memo. The goods can bereused either fully or partially.

When the returned goods are received from the customer,they are initially posted into blocked returns stock. Thereturned goods are checked and a decision is made as to

what

to do with them, for example: breakage stock (returnedto vendor or destroyed), staff sales, transfer tonormal stock/distribution to backorders.

Customer Return



Process Flow DiagramCustomer Return


Preparations

Execution

Transfer from

Rerurns Stockto Blocked

Stock

Stock Control

Goods Issue for the Free of

ChargeSubsequent

Delivery

Create a

Delivery for theFree of Charge

SubsequentDelivery

Create aReturnsDelivery

Full Transfer

PostingtoUnrestricted-

Use Stcok

Stock Control

Release theReturns for SubsequentProcessing

Create aReturn


Transfer fromBlocked Stock

to ReturnDeliveryStoragelocation

Check theDocument Flow

Create a Free of Charge

SubsequentDelivery

Remove theBilling Block

Issue theCredit Memo

CreateReturns Order

Post the GoodsReceipt for the

Returns

Post the Goodsreceipt for the

ReturnedGoods


Create a Returnwith Free of

ChargeSubsequent

Delivery

Stock Display

Create CreditMemo

Release toAccounting

Create aReturnsDelivery

Post theReturnsDelivery



Process of Returns Handling

Finance: Logistics:

Input of customer returns

Credit note or

Subsequent delivery free of

charge

Stock

Stock correction (Input to

blocked stock)

Following processes

Log. invoice verification

Input of customer returns

Goods receipt

Creation of customer returns order

Stock transfer posting

into unrestricted stock or

Dispatching to backorders

Transfer posting to returns stock

Following processes

Return delivery to vendor

Invoice verification



Arrival of the return goods

Posting in blocked stock

Goods receipt posting




Evaluation of the return goods

Control of the goods

Decision of further use

Transfer back to

unrestricted stock

Transfer to

returns stock




Additional Use I – Unrestricted Stock

Tranfer back to unrestricted stock

Allocate to open orders




Additional Use II – Returns Stock

Transfer back to returns stock

Disposal




Subsequent process

Return delivery to vendor




As part of the subsequent settlement procedure,you can offer a reduced price, for example,

when a customer buys certain quantities of particular articles together, uses a customer card for payment, or reaches or exceeds thesales volume in a period that has been agreedupon in advance.

Subsequent Settlement




Process Flow DiagramSubsequent Settlement


8.3RebateProcessing

(in SD)

8SubsequentSettlement

8.3.3Update the

Sales Volume

8.3.2Create Rebate

Agreement

8.3.4Generate

‚New‘ SalesVolume

8.3.1.1Settlemenr of

theAgreement(s)

8.3.1Display theStatus of Rebate

Agreement

8.3.4.1Create Sales

Order

8.3.5Display SalesVolume Data

8.3.4.2.3Document

Flow

8.3.4.3Create Billing

Document

8.3.4.2.1Create Delivery

8.3.4.2.2Create Transfer

Order andCorfirm with GI

8.3.4.2OutboundDelivery

8.3.6Display Drill

Downs

8.3.8Release

Agreement

for Settlement

8.3.7Carry outpartcial

Settlement

8.3.7.1Release CreditMemo Requestfor the Partial

RebateSettlement

8.3.7.2Bill Credit

Memo Requestfor the Partial

rebateSettlement

8.3.9Create Final

Settlement

8.3.9.2Bill RebateCredit MemoRequest for theFinalSettlement

8.3.9.1Release RebateCredit MemoRequest for theFinalSettlement

8.3.10DisplayPaymentHistory




Consignment goods are goods that are stored at acustomer location but that are still owned by your company. From a planning point of view this stock isno longer available and is managed independently.

The customer is not obliged to pay for these goods until

they remove them from consignment stock.Otherwise, the customer can usually returnconsignment goods that are not required.

Consignment processing is advantageous to bothparties. Customers store the consignment goods attheir own warehouses. The customer can access thegoods in the consignment warehouse at any time.

They are only billed for the goods when they areremoved from the warehouse and only for the actualquantity taken.

Customer Consignment




Process Flow DiagramCustomer Consignment


Reduce theConsignment

Stock atCustomer

Alternative 1:ConsignmentIssue

Create Delivery

Alternative 2:ConsignmentPick-Up

Optional Processafter Consignment

Issue:Consignment

Returns

Billing or CreditMemo for theConsignment

Return Created

Remove theBilling Block

Goods Receipt

Billing Goods Issue

ConsignmentFill-Up

Create andCorfirm

Transfer Order Document Flow

ConsignmentStock




Customer contracts are outline customer

agreements that display when goods are

purchased within a certain time period.

Contracts are concluded with the customer so that

the purchasing/production and sale of goods

can be estimated better, which in turn enables

better conditions to be negotiated.

Customer Contract




Process Flow DiagramCustomer Contract


Create Contractrelease Order

for ValueContract

Create Contractrelease Order

for QuantityContract

Value Contract

Quantity

Contract




The product catalog is the basis for printed andelectronic catalogs. The catalog is maintained in

the SAP ERP System and can be transported toexternal systems and processed as templatesfor print catalogs or electronic catalogs (CD-

ROM or Internet). IDocs and BAPIs areavailable for exporting the catalog data.

Product Catalog




Process Flow DiagramProduct Catalog


Create aProductCatalog

Create BasicData

MaintainDocuments and

Texts in theArticle Master

Add ArticlesLayout Areas

Manually

Pricing in theProductCatalog

Create aLayout

HierarchyManually

Create Lower-

Level LayoutAreas

Determine the

PricingProcedure

Create theLayout

Hierarchy of theProduct Catalog

Customer

PricingProcedure

MaintainArticles

MaintainLayout Areas

Maintain Textsand Documentsfor Articles andLayout Areas

Alternative:Create Layout

HierarchyAutomatically

Link betweenPromotion and

Product Catalog

PromotionalSales Prices

CreateDocument Info

Records

Add ArticlesLayout Areas

Using theDefault Article

Create aPromotion

Product Catalog

Create layoutHierarchy

Create BasicData



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