Module 13

1
Module 13

• 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 the customer.
• A distribution channel can be assigned (serve) to
  more than one sales organization.
• Distribution Channels allow for different
  conditions such as minimum order quantities and
  pricing.

4
Division

• 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.

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.

6
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 shipping department.
• 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.

7
Customer Order Cycle

• There are six processes in the customer order
  management cycle.
• SAP represents each of these processes with one
  or more electric documents.
• In practice these activities are performed by
  multiple groups of people.

8
Pre-Sales Activities

• There are two categories of presales activity
  Sales Support and Pre-sales Documents.
• Sales Support allows for tracking of customer
  contacts by including sales visits, phone calls,
  letters and direct mailings. Mailing lists can
  be generated based on specific customer
  characteristics.
• Pre-sales contacts include inquiries and quotes.
• Inquiries document customer requests for
  information (how much is . . ., is the product
  in stock . . .)
• Quotes are binding documents to a customer
  offering a specific quantity of material at a
  specific price if accepted within a specific
  period.
• Both Inquiries and Quotes can be used as a
  starting point to create a customer order.

9
Sales Order Processing

• Customers place orders with a customer service
  representative who create a document with
  information 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
  customers and materials to minimize data entry
  errors.

Electronic Capture of a Business Event
10
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.

11
Inventory Sourcing

• Inventory sourcing occurs when
• An order is created.
• An order is changed.
• When the delivery document is created.

12
Delivery

• Delivery activities include
• Creating delivery documents
• Creating transfer orders for material picking
• Provide packing information (if required)
• Goods issue (updating accounting and inventory
  data)

13
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 customers accounts receivable account
  and credits the revenue account. Postings may
  also be made to other accounts.

14
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 (material
  not in stock, defective material returned for
  credit, etc.). SAP has procedures to deal with
  these possibilities.

15
Order Management Process
16
Document Flow

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

17
Master Data

• Master Data is centrally stored (shared across
  application modules) and is processed to
  eliminate data redundancy.
• When creating business transactions (like a sales
  order) the R/3 system 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

18
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.

19
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)

20
Stock Available Backward Scheduling
21
Stock Unavailable Forward Scheduling
22
Delivery

• A delivery can be created for each sales order.
• Sales orders may split into multiple deliveries
  (availability).
• A delivery may combine a number of sales orders
  for efficiency.
• Combined sales orders must have something in
  common like shipping point, delivery processing
  date, ship-to party or route.

23
Picking Process
not mandatory
24
Billing

• Invoice splits can be used to bill for different
  items like materials and services.
• Collective invoices can be used to consolidate
  deliveries onto one invoice to minimize paperwork.

25
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.