EGN 5620 Enterprise Systems Configuration
Fall, 2015

1. Engage in pre-sales activities
2. Create quotations and send to customers
3. Create sales orders , item proposal, or scheduling agreement
4. Schedule delivery and create delivery note
5. Create/send invoice to customer
( billing )
6. Receive/post payment from customer
7. Handle sales order return
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The Rushmore Group, LLC 2008. All rights reserved. January 2008 2

FI MM SD
FI
MM
SD
January 2008
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The Rushmore Group, LLC 2008. All rights reserved. 4

SD Process
January 2008
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Integration
Check
Availability
Sales Quotation
Entry
Sales Order
Entry
Delivery Note &
Pick Materials
Pre-Sales
Activities
Sales
Process
Pack
Materials
Receipt of
Customer Payment
Post Goods
Issue
Invoice
Customer
January 2008
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1: Engage in Pre-Sales Activities
Pre-sales Activities:
◦ Initiate customer contacts and communications
(sales activity) via:
Phone call records
On-site meeting
Letters
Campaign communication
◦ Implement and track
 direct mailing,
 internet, and
 trade fair campaigns based on customer attributes
Pre-sales documents :
Inquiries and Requests for Quotation from customers.

Quotation presents the customer with a legally binding offer to deliver specific products or a selection of a certain amount of products in a specified time frame at a predefined price .

Customer-Specific Material Info Record


Customer material information records is used to store data on a material defined for specific customer.
It contains customer-specific:
◦ Material number,
◦ Material description, and
◦ Data on deliveries and delivery tolerances
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
A sales order contains all of the information needed to process customers request. The process for creating a sales order has the following steps:
3.1 Pricing
3.2 Credit limit check
3.3 Availability Check
3.4 Delivering Schedule
3.5 Shipping point and route determination
3.6 Transfer of requirements to MRP
3.7 foreign trade and license processing

Three primary areas of a
◦ Header
Data relevant for entire sales order: customer data, total cost of order, number of sold-to party, number of ship-to party and payer, document currency and elements for the entire document, delivery date and shipping point order
◦ Line Item 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

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
January 2008
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
If a customer frequently orders the same combination of materials , system 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
January 2008
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
SAP can display pricing information at both the header for entire sales order and the line item level for individual material.

Pricing is extendable; it can be attached, or extended to external pricing programs or elements outside SAP for pricing.

It allows Gross to Net pricing : This allows discounts and reductions from the ‘master’ price.


SAP provides an efficient means to implement credit management

It is integrated with Financial Accounting (FI), via credit control area

This is especially important if a company does business with customers in financially unstable sectors or countries, or trade with countries that are politically unstable

It automatically alerts when a credit check fails
January 2008
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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 with one-time delivery)
 Complete delivery
(possibly delayed onetime delivery)
 Delayed proposal
(allows partial delivery schedule)


Inward/Outward movement of goods
Supply side:
◦ purchase orders
◦ purchase requisitions
◦ planned orders
◦ production orders
Demand side:
◦ reservations
◦ dependent reservations
◦ dependent requirements
◦ sales requirements
◦ delivery requirements
January 2008
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
SAP can automatically schedule essential shipping activities, using backward and forward scheduling rules.

It uses defined activity times to schedule delivery activities.
January 2008
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An item can 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 15 pieces now and the remaining 5 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.
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
Structure of sales documents
Header
Line Item # 1
Schedule Line # 1
Schedule Line # 2
Line Item # 2
Schedule Line # 1
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
A shipping point is determined for each line item

A delivery can only be processed from one shipping point

Routes -
SAP system determines routes automatically for each sales document item

Routes can be used to simply define transit time
January 2008
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• 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.
January 2008
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3.6: Transfer of requirements to MRP

3.7: 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
January 2008
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



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
Delivery
Note
Picking
Packing
Loading
Post Goods Issue
Each step in the delivery process updates the delivery note status
January 2008
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Sales quotation
No impact on
Financial Accounting (FI)
Sales order
Delivery/Goods
Issuing
Materials Management (MM) and Financial Accounting (FI)

Sales Order 1
Sales Order 2
Sales Order 3
Delivery 8…12
Order
Combination
Sales Order 4
Delivery 8…13
Delivery 8…14
Delivery 8…15
Partial
Delivery
Sales Order 5
Delivery 8…16
Complete
Delivery





SAP has the functions of processing credit/debit memos and rebates
It automates invoicing, based on sales orders and/or deliveries
It is integrated with Finance (FI) &
Controlling (CO)
It updates customer’s credit data
January 2008
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Sales Invoice
Sold To:
Rushmore Group
Sales Org: S001
Dist Channel: RE
Division: 01
Conditions/Price:
$120
January 2008
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Delivery based
Invoicing
Order 6
Delivery 8…20
Delivery 8…21
Invoice 9…45
Invoice 9…46
Collective
Invoicing
Order 9
Order 14
Delivery 8…33
Delivery 8…34
Delivery 8…56
Invoice 9…68
Split
Invoicing
Order 32
Delivery 8…86
Invoice 9…91
Invoice 9…92
January 2008
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
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 .
January 2008
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
Payment is the final step in the sales order process.

SAP posts payments against invoices.

Posting clears the liability in the A/R account and increases your bank account.

Customer Return
Order received
Delivery
Note
Sales
Process
Goods
Receipt
Payment to Customer
Create
Credit Memo
Quality
Inspection
January 2008
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1 Order 14
Delivery 8…56
2 Return Order Return Delivery
3
Invoice 9…68
Quality
Inspection
Credit Memo
Return to Inventory
Payment
January 2008
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

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
January 2008
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
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)
January 2008
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Sales Order
Pre-Sales
Activity
Delivery Billing
Accounts
Receivable
Availability
Check
In
Inventory
YES
Plant or
Warehouse
Goods to
Delivery
Inventory
Postings
General
Ledger
Accounts
NO
Purchase
Requisition
Purchase
Order
Goods from
Purchase Order
Goods
Receipt
Invoice
Receipt
Accounts
Payable
January 2008
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At this point sales process is passed over to Financial
Accounting to await payment.


Document flow feature allows user to find the status of an order at any point in time.
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).
January 2008
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Exercises: (Due date: 9/12/2015)
1. Move stock from one plant to another plant
2. Check stock status
3. Create customer quotation
4. Create sales order from sales quotation
5. Check stock status
6. Create delivery note for sales order
7. Check stock status
8. Picking materials on delivery note
9. Post goods issue
10. Check stock status
11. Bill customer
12. Post receipt of customer payment
13. Review document flow
14. Create Customer Material Info Record
15. Create second sales order
16. Create delivery for second sales order
17. Pick materials on delivery note
18. Post goods issue
19. Bill customer
20. Post receipt of customer payment