sales distribution processes egn 5620 enterprise systems configuration spring 2013 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Sales & Distribution Processes EGN 5620 Enterprise Systems Configuration Spring, 2013 PowerPoint Presentation
Download Presentation
Sales & Distribution Processes EGN 5620 Enterprise Systems Configuration Spring, 2013

Loading in 2 Seconds...

play fullscreen
1 / 52

Sales & Distribution Processes EGN 5620 Enterprise Systems Configuration Spring, 2013 - PowerPoint PPT Presentation


  • 102 Views
  • Uploaded on

Sales & Distribution Processes EGN 5620 Enterprise Systems Configuration Spring, 2013 . Engage in pre-sales activities Create quotations and send to customers Create sales orders Schedule & deliver Bill customer (by invoice) Receive payment from customer Handle sales order return.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Sales & Distribution Processes EGN 5620 Enterprise Systems Configuration Spring, 2013' - lesley


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
sales distribution process
Engage in pre-sales activities
  • Create quotations and send to customers
  • Create sales orders
  • Schedule & deliver
  • Bill customer (by invoice)
  • Receive payment from customer
  • Handle sales order return
Sales & Distribution Process

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

business process integration

Master Data

Rules

Org Data

FI

FI

MM

MM

SD

SD

FI

SD

MM

Transactions

FI

MM

Business Process Integration

SD

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

pen incorporated procure for sales order

Accounts

Receivable

Sales Order

Pre-Sales Activity

Delivery

Billing

Availability Check

Goods to Delivery

Inventory

Postings

General Ledger Accounts

In Inventory

Plant or Warehouse

YES

NO

Goods from Purchase Order

Accounts

Payable

Purchase Requisition

Purchase Order

Goods Receipt

Invoice Receipt

Pen Incorporated Procure for Sales Order

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

business process integration1

SD Process

Transactions

Business Process Integration

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

slide7

Integration

SAP Sales Order Process(Order-to-Cash)

Check

Availability

Sales

Process

Sales Order

Entry

Sales Quotation

Entry

Delivery Note &

Pick Materials

Pre-Sales

Activities

Pack

Materials

Post Goods

Issue

Receipt of

Customer Payment

Invoice

Customer

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sap sd process
Engage in pre-sales activities
  • Create quotations and send to customers
  • Create sales orders, item proposal, or scheduling agreement
  • Schedule delivery and create delivery note
  • Create/send invoice to customer (billing)
  • Receive/post payment from customer
  • Handle sales order return
SAP SD Process

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 create sales order

A sales order contains all of the information needed to process customers request.

  • The steps for creating a sales order:
    • Pricing
    • Credit limit check
    • Availability Check
    • Delivering Schedule
    • Shipping point and route determination
    • Transfer of requirements to MRP
    • foreign trade and license processing
SD3: Create Sales Order
sd3 1 pricing

SAP can display pricing information at both the header and the line item level for sales order.

  • It enables the user to program varied pricing procedures to meet individual organizations needs.
  • The pricing is extendable; it can be attached, or extended to external pricing programs or elements outside SAP for pricing.
  • It also allows Gross to Net pricing: This allows discounts and reductions from the ‘master’ price.
SD3-1: Pricing
sd3 2 credit check
SAP provides an efficient means to implement credit management
  • It is integrated with Financial Accounting (FI), via credit control area
  • It automatically alerts when a credit check fails
SD3-2: Credit Check

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 2 credit check1
A large number of outstanding receivables or bad debts can have a considerable impact on company performance.
  • The user may minimize credit risk by defining a credit limit for customers by using Credit Management.
  • This is especially important if a company does business with customers in financially unstable sectors or countries, or engages in trading with countries that are politically unstable or that adopt a restrictive exchange rate policy.
SD3-2: Credit Check

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 3 availability check
SD3-3: Availability Check

Availability Check

  • Determines the material availability date
  • Considers all inward and outward inventory movements

Allow for 3 methods of delivery

  • One-time delivery ( on- time one-time delivery)
  • Complete delivery (possibly delayed one-time delivery)
  • Delayed proposal (allows partial delivery schedule)
sd3 3 availability check1
In determining the material availability the following elements can be included in the availability check
    • Safety stock
    • Stock in transfer
    • Quality inspection stock
    • Blocked stock
    • Restricted use stock
    • All movements of stock
SD3-3: Availability Check

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 3 availability check2
Availability are affected by inward & outward movements of goods:
    • purchase orders
    • purchase requisitions
    • planned orders
    • production orders
    • reservations
    • dependent reservations
    • dependent requirements
    • sales requirements
    • delivery requirements
SD3-3: Availability Check

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 3 availability check3
One-time delivery
  • Deliver on the requested delivery date
  • In this section, SAP checks whether the requested delivery date can be kept to. If stock of the material is available to make a delivery on the requested delivery date, the stock quantity is confirmed here.
  • If there is no stock available, confirmed quantity zero is displayed.
SD3-3: Availability Check

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 3 availability check4
Complete delivery
  • In this section, SAP checks whether there will be sufficient stock for complete delivery at a later date:
    • If there is sufficient stock available at a later date to cover the required quantity in the sales document, the system proposes the date here.
    • If the system determines that complete delivery cannot be made at a later date, no date is proposed in this section.
SD3-3: Availability Check

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 3 availability check5
Delayed proposal
  • In this section, SAP checks whether and for which dates partial deliveries can be made. Partial deliveries are displayed for different dates. These dates are based on the planned inward and outward movements of stock.
  • During an availability check which takes replenishment lead time into account, the date on which replenishment lead time ends is displayed if insufficient stock means that no partial deliveries can be made before replenishment lead time ends.
SD3-3: Availability Check

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 4 delivery scheduling
SAP can automatically schedule essential shipping activities, using backward and forward scheduling rules.
  • It uses defined activity times to schedule delivery activities.
SD3-4: Delivery Scheduling

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 4 delivery scheduling1

Terms used in scheduling are defined below.

Transit time is the time in days that is required to deliver goods from your premises to the customer location. It is defined for a route.

Loading time is the time in days that is required for loading a delivery item. It is determined from the shipping point, the route, and the loading group of the material.

Pick/pack time is the time in days that is required for allocating goods to a delivery as well as the time in days that is required for picking and packing. It is calculated using the shipping point, the route, and the weight group of the order item.

Transportation lead-time is the time in days that is needed to organize the shipping of the goods. This might include booking a ship and reserving a truck from a forwarding agent. It is defined for a route.

SD3-4: Delivery Scheduling

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 4 delivery scheduling2

The following 5 deadlines are of importance for delivery scheduling:

  • Material availability deadline: must start picking and packing activities on the material availability deadline. This deadline must be selected early enough in advance so that the goods are ready by the given loading deadline.
  • 2. Transportation scheduling deadline: the date on which you must start to organize the transportation of the goods. This deadline must be selected early enough to ensure that the means of transport is available by the loading deadline.
SD3-4: Delivery Scheduling

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 4 delivery scheduling3

3. Loading deadline: the date on which the goods must be available for loading and on which all vehicles that are required to ship these goods must be ready for loading. After the time required for loading the goods (loading time) has expired, goods issue can be carried out.

  • 4. Goods issue deadline: the date on which the goods leave the company in order to arrive punctually at the customer location.
SD3-4: Delivery Scheduling

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 4 delivery scheduling4

5. Delivery deadline: the date on which the goods are to arrive at the customer location. The difference between the goods issue deadline and the delivery deadline is calculated from the transit time required for the route between the delivering plant and the customer.

The delivery deadline can be the customer's requested delivery deadline or the confirmed delivery date (that is, the earliest date on which you can deliver goods to the customer).

SD3-4: Delivery Scheduling

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 4 delivery scheduling5

An item consists of one or more schedule lines. 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 need to schedule two deliveries.

The data for these deliveries (dates, confirmed quantities) are stored in two separate schedule lines.

SD3-4: Delivery Scheduling

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 4 delivery scheduling6
Structure of sales documents

Header

Line Item # 1

Schedule Line # 1

Schedule Line # 2

Line Item # 2

SD3.4: Delivery Scheduling

Schedule Line # 1

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 5 shipping point and route determination
A shipping point is determined for each line item
  • A delivery can only be processed from one shipping point
  • Routes - route to be traveled & transit time are determined using customized rules
  • Routes can be used to simply define transit time
SD3-5: Shipping Point and Route Determination

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 6 transfer of requirements to mrp
Sales order is transferred to MRP as a Customer Independent Requirement (CIR). If a deficit is found, SAP will propose a purchase req. or planned order to fulfill the shortage after running MRP or MPS.
  • Sales and distribution requirements reduce existing stock or inward movements of stock on the material availability date to ensure that other outward movement of stock elements cannot access the quantity reserved in this way.
SD3-6: Transfer of requirements to MRP

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 7 foreign trade and license processing
Predefined trade areas — NAFTA, EU
  • Automated reporting for trade areas
  • Automated controls
    • License management
    • Embargo lists
    • Control by customer, country, product, point in time
SD3-7: Foreign Trade and License Processing

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd3 create sales order1
SD3: Create Sales Order

The sales order document is made up of three primary areas:

  • Header

Data relevant for the entire sales order: customer data, total cost of the order, number of the sold-to party, number of the ship-to party and the payer, document currency and exchange rate, pricing elements for the entire document, delivery date and shipping point order

  • Line Item

Information about the specific product: Ex: material and quantity, cost of an individual line

  • Schedule Lines

Uniquely belongs to a Line Item, contains delivery quantities and dates for partial deliveries

sd3 create sales order2

Item Data

  • Whereas data in the document header applies to all items in the document, some data applies only to specific items. This data is stored at item level and includes the:
  • Material number
  • Target quantity for outline agreements
  • Number of the ship-to party and the payer (an alternative ship-to party or payer can be defined for a particular item)
  • Plant and storage location specifications
  • Pricing elements for the individual items
  • Schedule line data
SD3: Create Sales Order

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

ds3 create sales order item proposal
If a customer frequently orders the same combination of materials, SAP can store the frequently used data as an item proposal in the system.
  • During sales order processing, the user can copy all or some of the materials and quantity data from the item proposal directly into the sales order (document)
  • Item proposal can be assigned to one or multiple customer master records
DS3: Create sales order: item proposal

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd4 schedule delivery and create delivery notes

Picking

Packing

Loading

Post Goods Issue

SD4: Schedule delivery and create Delivery notes
  • Initiates the delivery process
  • Control mechanism for the process
  • Changes to delivery are allowable - products, quantities
  • Integrated with the Material Management (MM) and Finance (FI) modules

Each step in the delivery process updates the delivery note status

Delivery Note

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

delivery goods issuing reconciliation account

No impact on

Financial Accounting (FI)

Sales quotation

Sales order

Materials Management (MM) and Financial Accounting (FI)

Delivery/Goods Issuing

Delivery/ Goods IssuingReconciliation Account
sd4 shipping

Sales Order 1

Sales Order 4

Sales Order 5

Delivery 8…16

Sales Order 2

Delivery 8…13

Sales Order 3

Delivery 8…14

Delivery 8…15

Delivery 8…12

Order

Combination

Partial

Delivery

Complete

Delivery

SD4: Shipping
ds5 billing overview

SAP has the functions of processing credit/debit memos and rebates

  • It automates invoicing, based on sales orders and/or deliveries
  • It can create pro forma (paper) invoices
  • It is integrated with Finance (FI) & Controlling (CO)
  • It updates customer’s credit data
DS5: Billing Overview

© SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved.

ds5 billing

Sales Invoice

Sold To:

Rushmore Group

Sales Org: S001

Dist Channel: RE

Division: 01

Conditions/Price:

$120

DS5: Billing

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

ds5 billing methods

Delivery 8…20

Invoice 9…45

Delivery based Invoicing

Order 6

Delivery 8…21

Invoice 9…46

Delivery 8…33

Collective

Invoicing

Order 9

Delivery 8…34

Invoice 9…68

Order 14

Delivery 8…56

Invoice 9…91

Split

Invoicing

Order 32

Delivery 8…86

Invoice 9…92

DS5: Billing Methods

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

ds5 billing documents
Billing document is the umbrella term for invoices, credit memos, debit memos, etc.
  • Billing due list — builds a work list of invoices that should be generated
  • Automatic posting to Financial Accounting (FI): debit to customer sub-ledger account and credit revenue account.
DS5: Billing Documents

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

ds5 billing plans
Periodic — total amount for a planned billing period
  • Milestone — distributing the total amount over multiple billing dates - typically used with the project system (PS)
  • Installment — evenly proportioned amounts and defined payment dates
  • Resource related — consumed resources such as service or consulting
DS5: Billing Plans

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd6 payment

Payment is the final step in the sales order process.

  • SAP posts payments against invoices.
  • The posting clears the liability in the A/R account and increases your bank account.
SD6: Payment
sd7 handle customer return
SD7: Handle Customer Return

Sales

Process

Delivery

Note

Customer Return

Order received

Goods

Receipt

Payment

to Customer

Quality

Inspection

Create

Credit Memo

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd7 handle customer return1

1

Order 14

Delivery 8…56

Invoice 9…68

2

Return Order

Return Delivery

Quality

Inspection

Return to Inventory

3

Credit Memo

Payment

SD7: Handle Customer Return

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd7 handle customer return2
Returns document
    • Billing block can be proposed
    • Use the Order reason field to identify the reason for the return
    • Full access to pricing and ability to re-price
  • Return delivery
    • Issues a goods receipt to place material into inventory
SD7: Handle Customer Return

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd7 handle customer return3
Credit memo
    • Billing block must be cleared from Return
    • Posts to Financial Accounting (FI)
    • Can be processed in batch (background)
    • Can be processed collectively (grouped)
SD7: Handle Customer Return

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

sd process billing documents
SD Process: Billing Documents

At this point that the sales process is passed over to Financial Accounting to await payment.

document flow
The document flow feature allows you to find the status of an order at any point in time. The SAP system updated the order status every time a change is made to any of the documents created in the customer order management cycle (Order to Cash).Document Flow

© SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.

exercises due date 3 6 2013
Exercises: (due date 3/6/2013)

144a. Create customer quotation

144. Create sales order from sales quotation

145. Check stock status

146. Create delivery note for sales order

147. Check stock status

148. Picking materials on delivery note

149. Post goods issue

150. Check stock status

151. Bill customer

152. Post receipt of customer payment

153. Review document flow

154. Create Customer Material Info Record

155. Create sales order using customer info record

156. Create delivery for sales order

157. Pick materials on delivery note

exercises
Exercises:

158. Post goods issue

159. Bill customer

160. Post receipt of customer payment

161. Create a scheduling agreement

162. Process deliveries for a scheduling agreement

163. Display scheduling agreement

164. Check stock status

165. Bill customer

166. Run customer credit check

167. Post receipt of customer payment