sales order process (1)

8/10/2019 Sales Order Process (1)

http://slidepdf.com/reader/full/sales-order-process-1 1/30

1

Sales Order Process



2

Sales Organization

A sales organization is responsible for negotiating sales

conditions and distributing goods and services.

It represents the top organizational level to which you sum sales

figures. There must be at least one sales organization defined

A sales organization is assigned to only one company code.

More than one sales organization can be assigned to a

company code.



3

Distribution Channel

A Distribution Channel is the way sales materials reach thecustomer.

A distribution channel can be assigned (serve) to more than onesales organization.

Distribution Channels allow for different conditions such as

minimum order quantities and pricing.

SalesOrganization

Distribution Channel

Wholesale

Retail

Direct



4

Divisions are used to present product lines.

At least one division must be defined.

Divisions can be assigned to more than one sales organization.

Divisions restrict access to materials, so care should be

exercised in defining divisions.

Divisions

ProductLine 1

ProductLine 2

ProductLine 3

SalesOrganization

Division



5

Sales Area

A Sales Area is a valid combination of Sales

organization, Distribution Channel and Division. Customer Master Data and Sales Documents are

linked to sales areas.

Simple organizational structures are usually preferred

to complex ones.

Division 1 Division 2

Distribution Channel 1

Division 1


Sales Organization 1

Division 1 Division 2


Sales Organization 2



6

Fitter Snacker SalesOrganization

Wholesale (WH) Direct (DI)

Fitter Sales (##FS)

Snackbar (SB)Snackbar (SB)



Shipping Point

A shipping point is a fixed location that carries out shipping

activities. It may be a loading dock, a mail room or a shippingdepartment.

One plant can have multiple shipping points.

A shipping point can serve multiple plants.

Lead times for determining delivery dates are associated with

shipping points.



Customer Order Cycle

Pre-Sales ActivitiesSales Order Processing

DeliveryBilling

Inventory Sourcing

Payment



Pre-Sales Activities

There are two categories of presales activity: Sales Supportand Pre-sales Documents.

Sales Support allows for tracking of customer contacts byincluding sales visits, phone calls, letters and direct mailings.Mailing lists can be generated based on specific customercharacteristics. Basically an Integrated CRM system.

Pre-sales contacts include inquiries and quotes.

Inquiries document customer requests for information (“howmuch is . . .”, “is the product in stock . . .”)

Quotes are binding documents to a customer offering aspecific quantity of material at a specific price if acceptedwithin a specific period.

Both Inquiries and Quotes can be used as a starting point tocreate a customer order.



Sales Order Processing

Customers place orders with a customer servicerepresentative who create a document* withinformation on:

Customer Material Ordered - material and quantity

Pricing conditions for each item

Schedule lines - delivery dates and quantities

Delivery Information Billing information

Information is pulled from master data on customersand materials to minimize data entry errors.

*Electronic Capture of a Business Event



Inventory Sourcing

Inventory Sourcing determines:

If a product is available (availability check).

How the product will be supplied: From stock on hand.

From production or purchase orders that should

be available.

From make-to-order production. Shipped from an external supplier.

Shipped from another plant or warehouse.



Inventory Sourcing

Inventory sourcing occurs when:

An order is created.

An order is changed.

When the delivery document is created.



Delivery

Delivery activities include:

Creating delivery documents

Creating transfer orders for materialpicking

Provide packing information (if required)

Goods issue (updating accounting andinventory data)



Billing

A Billing Document is created by copying information

for the sales order and delivery document into the

billing document which is used to create the invoice. Creating a Billing Document will automatically debit

the customer’s accounts receivable account and

credits the revenue account. Postings may also be

made to other accounts.



Payment

Payment is the final step in the customer order

management cycle.

Final payment includes:

Posting payments against invoices.

Reconciling differences, if necessary.

The Cycle may not always go as planned (materialnot in stock, defective material returned for credit,

etc.). SAP has procedures to deal with these

possibilities.



Order Management Process

Quotation

Contact

Schedulingagreement

Order

Delivery Goods issue

Shipment

Invoice

Accounts ReceivableMaterial Stock

Account

Inquiry

Contract

Pre-SalesPre-Sales

Sales OrderProcessing

Sales OrderProcessing

Delivery/

Transportation

Delivery/

Transportation Transfer Order

BillingBilling

Payment/ Accounting

Payment/ Accounting

M a t e r i a l s M a n a g

e m e n t

M a t e r i a l s M a n a g

e m e n t

P r o d u c t i o nP l a nni n g

P r o d u c t i o nP l a nni n g

Inventory SourcingInventory Sourcing

S a l e s I nf o r m a t i o n S y s t e m

S a l e s I nf o r m a t i o n S y s t e m



Document Flow

Order Delivery Invoice Accounting

Document Flow of a Sales Order

Order 900. Delivery 50000672

. . WMS transfer order 100000828

. . GD goods issue: delivery 40000184

. . Invoice 90000376

. . . Accounting document 100000269

The sales order management process consists of a chain ofsteps. Each step in the process causes the creation of adocument which can be used to track the progress of the salesorder. All changes to documents (sales orders, delivery, etc.)creates a document to keep track of the changes.



Document Flow



19

Master Data

Master Data is centrally stored (shared across applicationmodules) and is processed to eliminate data redundancy.

When creating business transactions (like a sales order) the R/3system copies information from master data.

Three kinds of master data are critical to sales order processing:

Customer - Shared with FI/CO

Material - Shared with MM and PP

Pricing

Customer

Master

Customer

Master

MaterialMaster

MaterialMaster

Pricing

Master

Pricing

Master



20

Creating an Order

When a sales order is created in R/3, data is copied from:

Customer Master Material Master

Condition Records for Pricing

Tables in Configuration for shipping point and route.

Data can also be copied from an inquiry or quote.

Sold-to party 2540-00

Item Material Quantity

1 1400-500-00 302 1400-100-00 20

Customer Master

Material Master



21

Shipping Point and Route

The Shipping Point is the logical or physical location where

deliveries are created and managed (see Organizational

Elements).

The Route is the path that the delivery follows from the plant to

the customer site.

Delivery dates are determined based on lead times associated

with the shipping point (picking and packing time) and route

(transportation lead times and transit times)

Plant Shipping Point Route Customer

SP 1

SP 2

SP 3



22

Stock Available: Backward Scheduling

RequestedDelivery

Date

Goodsissue date

LoadingDate

TransportationPlanning Date

Material Availability DateOrder Date

Transit TimeLoading Time

Pick Pack and Stage

TransportationLead Time

The R/3 System uses thelonger of these two times in

calculating delivery scheduling.



23

Stock Unavailable: Forward Scheduling

ConfirmedDelivery

Date

Goodsissue date

LoadingDate

TransportationPlanning Date

New Material Availability DateOrder Date

Transit TimeLoading Time

Pick Pack and Stage

TransportationLead Time

The confirmed delivery dateis derived by the R/3 System

using forward scheduling basedon the new material availability date



25

Picking Process

Delivery Items Complete

Copy picked quantity Create a new transfer order

for variance quantity

Process differences

Confirm Transfer Order*

Print Transfer Order

Transfer Order

Delivery

* not mandatory



26

Billing

Invoice splits can be used to bill for different itemslike materials and services.

Collective invoices can be used to consolidate

deliveries onto one invoice to minimize paperwork.

Sales Order Delivery Invoice

Invoice

Sales OrderDeliveryDelivery

Invoice

Invoice

Delivery

Sales Order

Sales Order

Delivery

Delivery

Invoice

Invoice

Split

Separate

Invoiceper delivery

Collective

Invoice



27

Posting Payments

Customers may send one check to cover multiple invoices. They

may also send checks for less than the full amount due. SAP

allows for partial payments to be applied to invoices.

Payment posting is performed by the accounts receivable

department.

Invoice 1

Invoice 2

Invoice 3

Invoice 4

Acme Corp. 4325

Pay to $Dollars

First National Bank

2132 123123 54545 345 34



28

Fitter Snacker Exercise

Inquiry

West HillsAthletic Club

Sales

Order

1 2

AvailabilityPricing

Sales andDistribution



29


Delivery

Sales

Order

3

5Pick

Materials

Management

Goods Issue

Delivery

4

Delivery




Invoice

West HillsAthletic Club

6

7

Sales andDistribution

Accounts

Receivable

Delivery

Receivable

Post

Receivable