Order Fulfillment I part 1
T-SCM60 part 1 of 2:
Process in Sales and Distribution
Monica Radytia Chrismawati
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Enterprise Structures in SD & Overview of Sales Process
Master Data in SD
Sales From Stock – Available
Sales From Stock – Shortage
Make-to-Order
Return and Credit Memo Processing
Overview
Sales Order Management
Presales
Inquiries
Quotation
Customer
Sales
Order
Outbound
Delivery
Transfer
Order
(Picking)
Billing
(Invoice)
Payment
VA01 – Create Sales Order  Save  Doc. Number generated.
VL01N – Create Outbound Delivery  Save  Doc. Number generated.
Stock di warehouse belum berkurang.
LT03 – Create Transfer Order  Save  Doc. No. Generated.
Stock di warehouse belum berkurang.
VL02N – Change Outbound Delivery  Posting Good Issue.
Stock di warehouse berkurang pada saat posting good issue.
Update nilai di balance sheet untuk akun inventory.
VF01 – Create Billing document  Save
Accounting document’s status Cleared
Sales Process in SAP
• Company code
Legal entity and independent accounting unit.
Smallest organizational unit in external accounting.
• Sales Area
• Sales Organization
• Distribution Channel
• Division
• Plant
• Storage Location
• Shipping Point
Organizational Units in SD
• Highest organization unit in Sales.
• Sales Org. is assigned to exactly a Company Code (CC).
• Sales Org. is assigned to one or more plants.
• The function of sales organization:
Determine responsibilities for:
• pricing structure, strategic to distribute goods & services, terms of
sales (sales condition), product claim, guarantee.
Sales Organization
• Relationship with Company Code:
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CC : S. Org = 1 : N
S. Org : CC = 1 : 1
• The reasons why it is possible to have more than one
Sales Org. :
• Different legal responsibilities to distribute different products lines
separately. Eg: medicine & veterinary medicine.
• Separated sales activities of different enterprise areas (marketing &
distribution purposes). Eg: domestic & export market.
• etc
Sales Organization
Sales Org.
vs Sales
Area
• Sales Org. is a member of sales area.
• Sales org. together with distribution channel, and division create a sales
area.
• Sales area represents geographical aspect of the particular company code,
from there we can generate the reports.
• All SD documents belongs to sales area.
• In Sales Area there are sales office, sales group, and sales people to
represent the representative office of sales.
• Represents the location from which material (stocks) and services are
distributed.
• A plant must be uniquely assigned to a company code.
• It is possible that a plan belongs to different company code (intercompany sales / cross-company sales).
• Sales Org. : Plant = N : N
• The plant is essential for determining the shipping point.
• Sales org. is assigned to plant through distribution channel.
Plant in SD
• A plant to deliver goods to
customers.
• Verify the stocks and later
supply the goods the
customers has ordered.
• A plant can be assigned to
several distribution chains
(distribution channel) as a
delivering plan.
• Delivering Plant:
• Sales org. + distribution
channel = delivering
plant
Delivering Plant
• Shipping Process:
• Outbound delivery
• Picking (Transfer Order)
• Packing
• Posting Goods Issue
• Shipping point is the highest organization unit of shipping.
• Shipping point is assigned at plant level.
• Plant : Shipping Point = N : N
Shipping
• Shipping Point : Outbound Delivery = 1 : N,
prerequisite:
• Shipping Point
• Due Date
• Ship-to address
same
Outbound Delivery
Billing
Material
- Prices
- Discount
- Freight/Incoter
ms
- Taxes
Cust/
Condition
- General Data
- Company Code Data
- Sales Area Data
SD Master
Data
Customer
Material
Info
Output
Master Data in SD
- Cross reference
material number
Mandatory fields:
- Account group (specific partner function)
- Cust. No
- Company code
- Sales Area (Sales Org/Dist. Channel/Division)
- General Data (last name, search term, city, country)
- To be used in all org. unit within a client.
- Company Code Data (Reconciliation account (G/L))
- To be used in accounting.
- Sales Area Data:
- Billing doc: Tax Classification
- Partner Function (Sold-to-party, Bill-to-party, Ship-to-party,
Payer)
Customer Master Data
The function to define Sales Area (Sales Org., Dist. Channel, &
Division) when creating customer master:
- Defined payment terms for each customer based on product sold
- Defined condition master
- Classified customers based on products sold to them.
- Make it possible to assign a customer to different sales area.
Customer Master Data
cont’d
• Mapping customer’s defined material with code material
belongs to company.
• Mapping default value for delivering plant, delivery
priority, min. order, partial delivery to specific customer.
• E.g:
• Sampoerna A Mild
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T1002
• Customer X can only be served by delivering plant 1000.
Customer - Material Info
Master Data
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Prices
Surcharges / Discount
Freights (incoterms: CRF, CIF, FOB, etc)
Taxes
Condition
Master Data
Automatic
Pricing
Condition Master Data
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Standard Order
Cash Sales
Rush Order
Free-of-charge delivery
Returns
Consignment Fill-Up
Credit/Debit Request
Sales Document Types
Standard Order
Cash Sales
Rush Order
Delivery & invoice on a
fixed date
Delivery + invoice
immediately
Delivery immediately,
invoice later
Normal order
Billing related
Delivery related
Relevant for availability
check.
Not relevant for
Relevant for availability
availability check as you check.
will be picking the goods
directly.
Relevant for credit
management
Not relevant for credit
management
Relevant for credit
management
Cust. Account group: SP
Cust. Account group:
one time
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Example: Standard Order Example: buy in
supermarket
Example: Delivery is
made on the same day
as when the order was
created
SO vs Cash Sales vs Rush Order
• Take place on MAD (Material Availability Date)
• Function:
• To check current stock
• Planned inwards movements (PO, PR, etc).
• Forecast outwards movements (existing SO, deliveries, etc).
Availability Check
Backward Scheduling
Requested delivery date - transit time = Goods issue date
Goods issue date - loading time = Loading date
Loading date - transportation lead time = Transportation scheduling
date
Loading date - pick/pack time = Material availability date
Backward Scheduling
Fordward Scheduling
If (MAD + Pick/pack time + Loading Time + Transportation < Req. Dev. Date) {
Backward Scheduling
}else{
Forward Scheduling
}
Forward vs Backward
Scheduling
• Stocks are available for picking.
• Delivery documents (outbound delivery &
transfer order) already made.
• Req. Delivery Date != Replenishment Lead Time.
Delivery can be made if:
Make-to-Order
Materials are not stored in the warehouse
but produced especially for a particular
order.
• Provide additional control for sales document.
• System can process a material differently in each sales
document type.
• Item Categories type:
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Standar Item
Free-of-charge item (inclusive / exlusive free goods)
Non-stock item
Text Item
Item Category
• Damaged goods
• Incorrect invoices
• It is made after:
• Created a sales order
• Delivered the goods and billed the customers for the goods
Return & Credit Memo
Processing
THANK YOU