PowerPoint Presentation by Charlie Cook Copyright © 2004 South-Western. All rights reserved. Chapter 10 The Order-to- Cash Process: Part I, Marketing and.

Copyright © 2004 South-Western. All rights reserved.

PowerPoint Presentationby Charlie Cook

Chapter 10Chapter 10

The “Order-to-The “Order-to-Cash” Process: Cash” Process: Part I, Marketing Part I, Marketing and Sales (M/S)and Sales (M/S)

The “Order-to-The “Order-to-Cash” Process: Cash” Process: Part I, Marketing Part I, Marketing and Sales (M/S)and Sales (M/S)

Copyright © 2004 South-Western. All rights reserved. 10–2

Learning Objectives

• To describe the business environment for the M/S process

• To analyze the effect of enterprise systems and other technologies commonly used in traditional implementations for the M/S process

• To analyze how the integration provided by enterprise systems and e-business add-ons can improve effectiveness and efficiency of the M/S process


Learning Objectives (cont’d)

• To describe the logical and physical characteristics of the M/S process and its support of management decision-making

• To describe and analyze controls typically associated with the M/S process


The Order-to-Sales ProcessThe Order-to-Sales Process

FIGURE 10.1FIGURE 10.1


A Horizontal A Horizontal Perspective of Perspective of

the M/S Systemthe M/S System


NOTES:1. The pyramids represent the organizational structures within

which the sales order, credit, and shipping departments reside.2. The horizontal lines numbered 1–9 represent information flows

generated by the M/S. As mentioned earlier, these information flows support the repetitive work routines of the four departments depicted. A short explanation of each flow is provided in Table 10.1.


M/S Horizontal Information Flows

• Customer places an order.

• Sales order department requires credit approval from credit department.

• Credit department informs sales order department of decision.

• Sales order department acknowledges the customer order.

• Sales order department notifies shipping department of the sales order.


M/S Horizontal Information Flows (cont’d)• Sales order department notifies warehouse,

revenue collection process, payroll process, and general ledger.

• Warehouse sends completed picking ticket to shipping department.

• Shipping department informs sales order department of shipment.

• Shipping department informs carrier and revenue collection process of shipment.


A Vertical Perspective of the M/S ProcessA Vertical Perspective of the M/S Process


NOTES:1. This figure represents a partial organization

chart of the marketing function.2. The broken lines represent vertical

information flows (often in the form of management reports) based on data generated or captured by the M/S process.


The M/S Process—Context DiagramThe M/S Process—Context Diagram



The M/S The M/S Process—Process—

Level 0 Level 0 DiagramDiagram



Dissemination Documents

• Picking ticketAuthorizes warehouse to “pick” goods, send to

shipping. Has warehouse location.

• Packing slipAttached to outside of carton; identifies customer and

goods.

• Customer acknowledgementNotifies customer of acceptance of order; shipping

date for order.


Dissemination Documents (cont’d)

• Sales order notification Internal form sent to billing department re pending

shipment

• Bill of ladingContract between shipper and carrierCarrier gets copy, shipper keeps copy.


Logical Data Descriptions

• Marketing data • Customer master data• Inventory master data• Accounts receivable master data • Sales order master data• Completed picking ticket file • Shipping notice file


Sample SAP Sales Order Entry ScreenSample SAP Sales Order Entry Screen



M/S M/S Process Process

FlowchartFlowchart

FIGURE 10.7aFIGURE 10.7a



FlowchartFlowchart(cont’d)(cont’d)

FIGURE 10.7bFIGURE 10.7b



FlowchartFlowchart(cont’d)(cont’d)

FIGURE 10.7cFIGURE 10.7c


Modified M/S ProcessModified M/S Process

TI 10.3TI 10.3

BCL = Sales order bar code label (one per carton) BCT = Bar code ticket (one for each product item) SO = Sales order


Sample SAP Sales Analyses ReportSample SAP Sales Analyses Report



Control Control Matrix for Matrix for the M/S the M/S ProcessProcess

FIGURE 10.9aFIGURE 10.9a

KEY: Possible operation process goals are (not intended to be all-inclusive): A—Provide timely responses to customer inquiries. B—Provide timely acknowledgment of customer orders.

C—Provide assurance of customer’s creditworthiness.D—Provide timely shipment of goods to customers.E—Comply with the fair pricing requirements of the

Robinson-Patman Act.

IV = input validityIC = input completeness IA = input accuracyUC = update completeness UA = update accuracy

Explanation of cell entries – see Exhibit 10.1.


FIGURE 10.9bFIGURE 10.9b

Control Control Matrix for Matrix for the M/S the M/S ProcessProcess

Explanation of cell entries – see Exhibit 10.1.

KEY: Possible operation process goals are (not intended to be all-inclusive): A—Provide timely responses to customer inquiries. B—Provide timely acknowledgment of customer orders.

C—Provide assurance of customer’s creditworthiness.D—Provide timely shipment of goods to customers.E—Comply with the fair pricing requirements of the

Robinson-Patman Act.

IV = input validityIC = input completeness IA = input accuracyUC = update completeness UA = update accuracy


The M/S Process—The M/S Process—Diagram 1Diagram 1



The M/S Process—Diagram 2The M/S Process—Diagram 2



The M/S Process—Diagram 3The M/S Process—Diagram 3



Entry-Entry-Relationship Relationship

(E-R) (E-R) Diagram for Diagram for

the M/S the M/S ProcessProcess



Selected Relational Selected Relational Tables (Partial) for Tables (Partial) for the M/S Processthe M/S Process


PowerPoint Presentation by Charlie Cook Copyright © 2004 South-Western. All rights reserved. Chapter 10 The Order-to- Cash Process: Part I, Marketing and.

Documents

ms process slide

sales order slide

sales ms slide

ms process figure

sales process figure

ms process flowchart

ms process level

b slide