Dilip Sadh Sales Order Training material

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Blue Print Workshop- Standard Sales order (OTC 2.1)

Dilip Sadh

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Agenda

Objectives

Approach

Overview of SAP standard functionality

Discussion of how SAP functionality will fit in Bose – Facilitated by the Q&ADB questions

Assign Action Items & Owners

Wrap-up

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Workshop Objectives Understand and document Bose Industry business processes and

system requirements so that the baseline knowledge is in place to proceed with system realization

Identify possible system issues (functionality gaps) that need to be resolved

Review best practices that will guide the deployment of the D2 functionality

Review the SAP Standard Sales order Processing

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Documents in the Order-to-Cash ProcessDocuments in the Order-to-Cash Process

Sales Order Processing

Shipping

Billing

Payment

Sales Order

Delivery

Invoice

Shipment CostShipment

Process

Post GoodsIssue Bill of Lading

Acceptance of Carrier Services

Create AccountsReceivable

Cash Receipt(Lock Box)

MM - FI Documents

Accounting Document:Inventory Reduction & COGS Entry

Payable (Invoice) to Carrier

Accounting Document:Accounts Receivable for the customer (FI-A/R)

Accounting DocumentApply Cash & Clear Invoice

Material Document:Inventory Reduction

SD Documents / Activities

Document

Activity

Final Payment to carrier

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There are three distinct groups of sales documents:

• Pre-Sales Activity: Inquiries , Quotations, Contract & Scheduling agreements

• Sales orders • Complaints, encompassing Subsequent Delivery Free of Charge order,

Credit /Debit memo requests and Return Orders (RA’s).

Sales DocumentsSales DocumentsI. General Information for Sales Order Processing

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   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

Item 2Schedule line 1

Schedule line 1

Schedule line 1

I. General Information for Sales Order Processing

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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)

Sales DocumentSales Document

Header

Item 1Schedule line 1

Item 2Schedule line 1

Schedule line 1

Schedule line 1

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

Currency: USD

I. General Information for Sales Order Processing

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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

Sales DocumentSales Document

Header

Item 1

Item 2

I. General Information for Sales Order Processing

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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

Sales DocumentSales Document

Header

Item 1Schedule line 1

Item 2Schedule line 1

Schedule line 1

Schedule line 1

I. General Information for Sales Order Processing

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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:

I. General Information for Sales Order Processing

• 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)

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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.

I. General Information for Sales Order Processing

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I. General Information for Sales Order Processing

Standard Sales order Variant:

• Rush Order• Employee Order• Cash Sales• Close Out Order etc

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V. Inventory and Availability Reporting

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Inventory and Availability

Availability CheckInward movement

of goods

Outward movementof goods

Stock

PurchaseOrder

ProductionOrder Firm

PlannedOrder

DeliverySalesOrder

Reservation

Other factors to take into account:

Safety stockStock transport ordersReplenishment lead time

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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.

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Thank you for your kind attention!