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BUSINESS PROCESS DESIGN
SALES PROCESS INDIA
PROJECT IDENTIFICATION
Project Name CPI Project Number
SAP – ERP & CRM Implementation Project XXXXXXXXXXXXX
Customer Name Customer Number
XXXXXXXXXX NNNNNNNNN
SAP Project Manager Customer Project Manager
Mr. Aditya Pandey XXXX
DOCUMENT IDENTIFICATION
Author Document Location (repository/path/name)
XXXXX Solution Manager
Version Status Date (DD-MMM-YYYY) Document Classification
1. PROCESS DESCRIPTION.....................................................................................................................5
1.1 Business Process Requirements.....................................................................................................5
Sales Processing: Drop Shipment Process...............................................................................................6
Master Data Requirements:.......................................................................................................................6
Document Type and Number range...........................................................................................................7
Sale order Type..........................................................................................................................................7
The ABCD vendor Sales process is required in the system by business, the ABCD production is entered manually in the ABCD location (The ABCD stocks treated as Non-Valuated stocks). The ABCD sales are treated as in transit sales process which happens against the E1 form. The PO is raised from the Samarlakota plant in between they receive the order from the customer the vendor move the goods to the customer location with E1 form. The customer is invoiced with C form 0 taxes. This process is used to avoid the double taxation.
In the current system the stocks are taken into the Samarlakota plant and sending the goods to the customer. The current requierement is the goods should not come to the plant in the system. Goods are removed to the customer from the vendor place.
Reporting requirements, profitability analysis of the ABCD Materials and E1 assessment reports from the system.
The excise duties are not involved in this process the taxes are exempted under the C form issuance with tax rate 0.
The material liability lies with vendor the material ownership transferred to the Ship to once the goods moved from the vendor location to customer.
.Benefits :
Tracking of the entire cycle from the sales order to vendor payment , PO item prices are loaded to the Materials .Easy to anlasis the profitability of the ABCD E1 sales materials and E1 assesment report can be generated from the system.
Key Process Steps :
Create sales orderAutomatic Purchase requistion Generate the Purchase orderLogical GRN Post Vendor InvoicePost the customer Invoice with refference to sales order
Required SAP Applications: Enhancement package 5 for SAP ERP 6.0
Enterprise Roles involved in process flows :Sales AdministratorWarehouse ClerkBilling Administrator
Sales Processing: Drop Shipment Process
This scenario describes the entire process sequence for a standard sales process (Drop Shipment) with a customer. The business process encompasses all steps from creating an order to the clearing of a customer account and vendor account.The process starts with the creation of a customer's sales order. Depending on the customer and the material, various special events take place during the order entry, such as customer/material pricing, insertion of applicable discounts and checking the customer‘s credit history and generating the automatic purchase requisition to create the Purchase orders on ABCD vendors.
Once the Purchase order is created the Turnover discount is added in the purchase order to hide material price to the customer when steeling the vendor after the discount value is settled to the vendor the actual cost is loaded to the materials.
This scenario consists of the following steps:
A sales order is entered with Tax category C form with 0 Taxes
A automatic Purchase requisition is created in the system
The Purchase requisition is copied to the Purchased order and Purchase order is created
The Vendor Invoice is posted in the system
The Customer invoice is created in the system.
In this scenario there is no taxes are charged to the customers.
Master Data Requirements:
All the ABCD materials are maintained as Third party items the separate material codes are maintained based on vendor specifications the source list is checked in the material master and the source list is maintained.
The Item category BANS -Third-party item is maintained in the Materials the pricing procedure ZIN001 is used to calculate the Prices in the ABCD sales documents. The Materials are treated as Third party materials .
In SAP R/3, each process is described by using different document types. Each document generated will have specific number assigned to it. The following are the sales order; outbound delivery and bill ing document types defined in SAP for ABCD and the SAP system number ranges assigned. All document numbers are internally assigned by the system.
Sale order Type
Sales Order Type Description Number Range
ZOR Retailer -Tiles 1000000001 1999999999ZSW Sanitary ware 1000000001 1999999999ZEX Export Orders 3000000001 3999999999
Delivery type
Delivery Type Desc
SAP Doc type Number range From To
OB Delivery ZLFA 2 8000000000 9999999999
Billing TypeBilling Type Desc SAP Doc type Number range From ToInvoice ZMRB 3 ABCD Specific
Numbers
The following figure shows the delivery document types created from the sales document types and the billing
document types created from the delivery document types
Sales, Delivery & Billing typeSale Doc type Delivery Type BillingZOR ZLFA ZMRBZSR ZLFA ZMRB
Any Manual Changes in Sale order will trigger Work Flow Approval ie changes in any Pricing Condition, Incoterm, payment Terms etc.
*Please refer Pricing Procedure Blue Print for Details
Proposed Packaging Material type:
For certain customer, business wants to enter the Proposed Packaging Material Type instruction at the time of Sale order and same will instruction will be available to Warehouse Clerk at the time of Packaging the material for eg Special packaging of material for European customer.
Loading detail and loading instruction
Loading Slip will contain all the loading instruction at the time of Loading of goods for eg Number of Pallets, truck Number, Driver License etc
Master data Details
System will populate the Customer and Material data information in sale order. All master data will be uploaded in system as per SAP template.
Box/ Pallet
Number of Boxes/ Pallet per Deliver line item as per batch will be picked by system automatically at the time of creation of outbound delivery, depend on the packaging instruction maintained in system.
Incoterm
Below Mentioned Incoterm will be created and maintained in Customer Master in SAP.
EXWORKS / EXFACTORY FOB (Onboard upto local sea port) C&F (Upto destination sea port) CIF (Upto destination sea port including insurance) DDU (Door to Door Delivery but Duty Unpaid) DDP (Door to Door Delivery including Duty Paid)
Below Mentioned Payment will be created and maintained in Customer Master in SAP.
100% cash in Advance Irrevocable confirmed Letter of Credit- at sight/ 30days/ 60days/ 90days/ 120days- from bill of
lading date Irrevocable confirmed Bank Guarantee- 30days/ 60days/ 90days/ 120days- from bill of lading date Cash against Document through Bank. Documents acceptance through bank-30days/ 60days/ 90days/ 120days- from bill of lading date 50% cash before production and balance 50% cash before loading Postdated cheque- 30days/ 60days/ 90days/ 120days- from bill of lading date Open Credit- against credit insurance cover-30days/ 45days/ 60days/ 90days/ 120days- from bill
of lading date
Material reservation
The Materials are reserved to the sales orders the stocks are treated as a special stocks in the system.
Post the GRN MMPost the logical GRN to book the third party accounts
Material Master Management
MM Material Master
1.9 Potential Future Process Improvements
N/a
2. Functional Solution Design
Scenario-1 Allocate finished goods available from Finished goods stock
Sales Order will be created in ERP by sales team
System will Run the credit check, if credit limit not available then block Sale Order
System will create the Automatic Purchase requisition.
The ABCD location is created as Virtual location Non-valuated plant.
All the stocks are updated manually in the Virtual location
After doing the invoice the stocks should reduce from the ABCD plant (This is not a standard functionality) this development is treated as change request.
The standard workflow is used to release the sales order the Workflow is WS90000005-ZSD_SO_WF
E1 Sales report is not part of the standard report it is a development.
The sales organization is an organizational unit within logistics, that structures the company according to its sales requirements.
Sales Organizations are assigned to one Company Code Sales Organization is the selling unit in the legal sense with responsibility for:
o Product liability and rights of recourseo Distribution of goods and serviceso Sales conditions and contract negotiations
Distribution Channel
The distribution channel represents the channel through which salable materials or services reach customers. Typical distribution channels include wholesale, retail and direct sales.
Distribution Channel is used when processes like order entry are totally different Distribution Channel enables differences in Customer, Material, and Pricing master data Distribution Channel promotes segregation of duties Distribution Channel facilitates reporting (example, Inter Company for assigning revenue in CO-PA)
Division
In the SAP System you can define a division-specific sales organization. Product groups, i.e. divisions, can be defined for a wide-ranging spectrum of products.
For every division you can make customer-specific agreements on, for example, partial deliveries, pricing and terms of payment. Within a division you can carry out statistical analyses or set up separate marketing procedures
Division groups products or services Division represents a product line Division is assigned to a material
Sales Area
SD is organized according to sales organization, distribution channel and division
Sales Area is any configured combination of the organizational units Sales Organization, Distribution Channel, and Division
Shipping points are defined in the SD organizational master data setup. They are the top level of the organization in shipping. Deliveries are always initiated from exactly one shipping point. A shipping point is assigned one or more plants and can be subdivided into several loading points.
Shipping points are independent organizational units that are linked to a plant and represent the point of departure or receipt of materials. A plant may have many shipping points. A delivery is created from one shipping point only
2.2 Master Data Considerations (including all relevant data relationships)
Essential master was created in ERP system in the implementation phase, master data that suits its operational focus, for example, master data for materials, vendors, and customers.
This master data usually consists of standardized SAP Best Practices default values, and enables you to go through the process steps of this scenario.Essential Master Data Consideration for Return Processes are :
Sales Area Customer Master Material Master Pricing Master
2.3 System Configuration Considerations
Standard Order Document types should be configured to address the customer requirements Availability check needs to be activated in customizing for accurate stock determination during the order entry Automatic price and discount should be proposed during the order entry via customizing. Should be able to
modify certain prices during the order entry Free Goods functionality needs to be configured for giving goods free along with main order
Below are the Configured Consideration for this Blue Print Process
Core Configuration
ID Description IMG Activity Owner1 Define Standard Doc type Sales and Distribution → Sales
11 Copying Control Delivery document to Billing Document
Sales and Distribution → Billing → Billing Documents → Maintain Copying Control for Billing Documents → Copying Control: Delivery Document to Billing Document
12 Assign Requirement Types Logistics Execution → Shipping → Basic Shipping Functions → Availability Check and Transfer of Requirements → Transfer of Requirements → Determination of Requirements Using Transaction
Sales and Distribution → Basic Functions → Output Control → Output Determination → Output Determination Using Condition the Technique → Maintain Output Determination for Sales Documents → Assign Output Determination Procedures
16 Create Candition Record BA00 Logistics → Sales and Distribution → Master Data → Output→ Sales Document → Create
17 Create Condition Record RD00 Logistics → Sales and Distribution → Master Data → Output→ Billing Document → Create
3. Technical/Development Related Items
3.1 Workflow
Work Flow need to set if there is any change/ Addition in the Pricing Condition, Incoterm & Payment term. Hierarchy of Work Flow Approval needs to be decided with the ABCD Business User.
The Workflow Object WS90000005- ZSD_SO_WF this workflow could tweak for the India requirements.
3.2 Reporting (operational and analytical)
Standard SAP Reports are available as shown Below, if required will create Customized Report as per the Requirement.
A list of all selected billing documents is displayed.
Orders within Time Period
SDO1 Sales Manager(SAP_NBPR_SALESPERSON-M)
Sales Sales Orders Reports Orders within time period
A list of sales orders within a specific time period
Incomplete SD Documents
V.02 Sales Manager(SAP_NBPR_SALESPERSON-M)
Sales Sales Orders Reports List of Incomplete Sales Orders
A list of all incomplete documents on the basis of the specified selection criteria is displayed.
List of open purchase orders and PR’s
ME2N Procurement Team
SAP_MM_PUR_BUYER
A list of open PO’s and open PR’s
3.3 Interfaces
N/a
3.4 Data Conversion / Historical Data
ABCD Business needs to draw a strategy on Open Sales Order moving from their current Orion System to SAP at the Time of Final preparation for Go Live. ABCD Business Team needs to do the Cleansing Process of Open Sales Order and try to move Minimum Sales Order to SAP.
Below are the Must field Requirement from Sales, if the Fields are not available in material Master or in SAP Standard Sales Order then the fields need to be Customized
1) Correct item code2) Size3) Quantity in m2/pc/rm/set/Box4) Grade (A Grade B grade or C grade ) Custom Field addition in Sale Order
Size
Scheme code
33x50RB
Plant wise number series the Z table has been maintained with combination of sales area and plant with number range intervals .
Custom Field addition in Outbound delivery- Warehouse will enter the detail manually in system and same below information will be printed on the Loading Slip.
There will be change in Role and Authorization for ABCD Employee. Specific Roles will be created and assign to Individual person with in ABCD.
5.2 Training Requirements
Following below are the Training Requirement for Business users.
Customer Master Data Maintenance Material Master Data Maintenance Pricing Master Data Maintenance. Sales order creation Delivery creation Billing Document creation.
Reversal of Process StepsIn the following section, you can find the most common reversal steps that you can take to reverse some of the activities described in this document.
Sales Order Entry
Transaction code ( SAP GUI)
VA01
Reversal: Delete Sales DocumentTransaction code ( SAP GUI)
VA02
Business role Sales Administrator(SAP_NBPR_SALESPERSON_S)
Business role menu Sales Sales Orders Sales Order Processing Change Sales Order
Comment Select menu Sales Document > Delete
PR Change
Transaction code ( SAP GUI) ME52NReversal: Change Purchase RequisitionTransaction code ( SAP GUI) ME52NBusiness role Procurement team
Reversal: Cancel Billing documentTransaction code ( SAP GUI)
VF11
Business role Billing Administrator(SAP_NBPR_BILLING_S)
Business role menu
Sales Billing Change Billing Document
Comment Go to transaction VF11, enter the relevant billing document number, choose Enter, and save your result. An invoice cancellation document has been created balancing the original invoice.