Sales Order Management
SAP Best Practices for Retail (RU)
Purpose, Benefits, and Key Process Steps
Purpose
 Sales Order Management describes a Business-to-Business (B2B) scenario: you sell to your known
customer(s) (with master data record), who in turn sell(s) the merchandise to their customers (wholesale
function). In addition to sales order processing functions, this scenario also includes the following process
steps: credit limit check and availability check, consignment, backorder processing, customer contract,
product catalog, online store, customer billing document, payment handling, and subsequent settlement.
Benefits
 The entire document chain - presales phase, order, follow-up actions - forms a document flow or history.
The flow of data from one document to another reduces manual processing and facilitates problem solving.
 Backorder fulfillment from returns stock allows you to manage how returns are to be allocated for
backorders and stock transfers: If the article is unused and can be readily shipped again, then it is quicker
and more cost-effective to use it to fill sales backorders or stock transfer orders rather than to move it back
to unrestricted-use stock and for subsequent picking and reshipment.
Key Process Steps
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Creation of Standard Orders, Rush Orders, Third-Party Orders
Backorder Processing and Rescheduling
Creation of Customer Billing Documents
Payment Handling
Customer Returns Handling
Subsequent Settlement
Customer Consignment Handling
Customer Contract Handling
Product Catalog Handling
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Required SAP Applications and Company Roles
Required SAP Applications
 SAP enhancement package 5 for SAP ERP 6.0
Company Roles
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Retail Sales Person
Retail Store Manager
Retail Warehouse Clerk
Accounts Payable Assistant
Accounts Receivable Assistant
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Process Flow Diagram
Standard Order/
Rush Order/
Third Party
Order Steps 4.14.3
Backorder
Processing and
Rescheduling
Retail Warehouse Clerk
Retail Store Manager
Retail Sales Person
Sales Order / Backorder Processing and Rescheduling
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Credit Limit
Check
Availability
Check
Run CATT
Monitor the
Returns Stock
Dirstibute
Returns Stock
to Backorders
Analyze Sales
Document
Rescheduling
Monitor the
Returns Stock
after
Distribution
Reschedule
Sales
Documents
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Sales Order: Alternatives
A Sales order is a customer request to the company for
the delivery of goods or services at a certain time.
The request is received by a sales area, which is then
responsible for fulfilling the order.
Standard order:
Merchandise will be collected or rather delivered and invoiced
afterwards.
Rush order:
Merchandise will be collected or rather delivered immediately and invoiced afterwards.
Third-party order:
Merchandise will be delivered directly by the vendor to the
customer. The ordering enterprise invoices to the customer
Cash sales order:
Merchandise will be collected and payed immediately.
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Options in the order creation - 1
Cross Selling:
due to the entered article
additional related articles are
suggested
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Dynamic Product Proposal:
due to the entered customer
the articles (History, PP...)
connected with this customer
number are suggested
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Options in the order creation - 2
The credit limit check is a check, whether
a customer has already covered his credit limit
and which consequences are connected
with it (warning, fault, delivery block).
This check can be carried out in every sales document.
The delivery of a product to a delivery date is only possible
if this product is available for all processing steps to be
carried out before the delivery.
To guarantee this the availability check is used in the
order.
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Backorder Processing
Check the returns stocks on goods
not damaged and not used
Listing of relevant requirements for
sales documents
Manual processing
Assignment of the ATPquantities
Backorder processing with a
selective list for sales
documents
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Select and process
backorders for a particular
article
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Rescheduling
Selection of the open sales document
Positions of the selected article
and
availability check
Analysis of the last rescheduling run
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Customer Billing Document
“Customer billing document” is an umbrella term
for invoices, credit memos, debit memos, proforma invoices, and cancellation documents.
Billing represents the final processing stage for a
business transaction in Sales and Distribution
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Process Flow Diagram
Customer Billing Document
Alternative 1
Create Billing
Documnet Online
on the basis of
the Outbound
Delivery
Retail Sales Person
Generate
Preceeding
Documents via
ECATT
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Incoming
Payment in FI
Alternative 2
Generate
Collective billing
Document in the
Background
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Payment Handling
The milestone billing in the billing plan is used for
the
payment processing of a deposit.
Milestone billing means, that the total value, which
should be
invoiced, is divided in several partial amounts in
the billing
plan (percentage/absolute), they are to be paid
at certain dates.
A milestone billing is a schedule with particular
billing dates.
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Customer Return
There are various reasons for returning goods:
- The goods are damaged in some way so that they cannot
be transferred back into normal stock, but have to be
returned to the vendor.
- The customer did not like the goods and wants to replace
them. The goods can, however, be reused either fully or
partially.
- The customer did not like the goods and wants their
money back or a credit memo. The goods can be
reused either fully or partially.
When the returned goods are received from the customer,
they are initially posted into blocked returns stock. The
returned goods are checked and a decision is made as to
what
to do with them, for example: breakage stock (returned
to vendor or destroyed), staff sales, transfer to
normal stock/distribution to backorders.
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Process Flow Diagram
Customer Return
Preparations
7Create a
Return
Create a
Returns
Delivery
Post the Goods
receipt for the
Returned Goods
7Remove the
Billing Block
Create Credit
Memo
Transfer from
Rerurns Stock
to Blocked
Stock
7Monitor the
Returns Stock
Full Transfer
Postingto
UnrestrictedUse Stcok
Monitor the
Returns Stock
Issue the
Credit Memo
Release to
Accounting
Stock Control
Transfer from
Blocked Stock
to Return
Delivery Storage
location
Stock Control
Create a Return
with Free of
Charge
Subsequent
Delivery
Create
Returns Order
Create a
Returns
Delivery
Create a
Delivery for the
Free of Charge
Subsequent
Delivery
Create a Free of
Charge
Subsequent
Delivery
Release the
Returns for
Subsequent
Processing
Stock Display
Post the Goods
Receipt for the
Returns
Post the
Returns
Delivery
Goods Issue for
the Free of
Charge
Subsequent
Delivery
Check the
Document Flow
Retail Sales Person
Execution
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Process of Returns Handling
Finance:
 Input of customer returns
Logistics:
 Input of customer returns
Credit note or
 Goods receipt
 Subsequent delivery free of
charge
 Creation of customer returns order
 Stock
 Stock correction (Input to
blocked stock)
 Stock transfer posting
 into unrestricted stock or
 Dispatching to backorders
 Transfer posting to returns stock
 Following processes
 Log. invoice verification
 Following processes
 Return delivery to vendor
 Invoice verification
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Arrival of the return goods
Goods receipt posting
Posting in blocked stock
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Evaluation of the return goods
Control of the goods
Decision of further use
Transfer back to
unrestricted stock
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Transfer to
returns stock
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Additional use I – unrestricted stock
 Tranfer back to unrestricted stock
 Allocate to open orders
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Additional use II – returns stock
 Transfer back to returns stock
 Disposal
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Subsequent process
Return delivery to vendor
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Subsequent Settlement
As part of the subsequent settlement procedure,
you can offer a reduced price, for example,
when a customer buys certain quantities of
particular articles together, uses a customer
card for payment, or reaches or exceeds the
sales volume in a period that has been agreed
upon in advance.
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Process Flow Diagram
Retail Sales Person
Subsequent Settlement
Rebate
Processing (in
SD)
Subsequent
Settlement
Display the
Status of Rebate
Agreement
Settlemenr of
the
Agreement(s)
Display Sales
Volume Data
Create Billing
Document
Display Drill
Downs
Carry out
partcial
Settlement
Create Rebate
Agreement
Update the
Sales Volume
Document
Flow
Create Transfer
Order and
Corfirm with GI
Release Credit
Memo Request
for the Partial
Rebate
Settlement
Bill Credit Memo
Request for the
Partial rebate
Settlement
Display
Payment
History
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Generate
‚New‘ Sales
Volume
Create Delivery
Release
Agreement for
Settlement
Bill Rebate
Credit Memo
Request for the
Final Settlement
Create Sales
Order
Outbound
Delivery
Create Final
Settlement
Release Rebate
Credit Memo
Request for the
Final Settlement
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Customer Consignment
Consignment goods are goods that are stored at a
customer location but that are still owned by your
company. From a planning point of view this stock is
no longer available and is managed independently.
The customer is not obliged to pay for these goods until
they remove them from consignment stock.
Otherwise, the customer can usually return
consignment goods that are not required.
Consignment processing is advantageous to both
parties. Customers store the consignment goods at
their own warehouses. The customer can access the
goods in the consignment warehouse at any time.
They are only billed for the goods when they are
removed from the warehouse and only for the actual
quantity taken.
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Process Flow Diagram
Customer Consignment
Retail Sales Person
Consignment
Fill-Up
Create Delivery
Billing
Create and
Corfirm
Transfer Order
Goods Issue
Document Flow
Consignment
Stock
Alternative 1:
Consignment
Issue
Reduce the
Consignment
Stock at
Customer
Billing or Credit
Memo for the
Consignment
Return Created
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Remove the
Billing Block
Goods Receipt
Optional Process
after
Consignment
Issue:
Consignment
Returns
Alternative 2:
Consignment
Pick-Up
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Customer Contract
Customer contracts are outline customer
agreements that display when goods are
purchased within a certain time period.
Contracts are concluded with the customer so that
the purchasing/production and sale of goods
can be estimated better, which in turn enables
better conditions to be negotiated.
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Process Flow Diagram
Retail Sales Person
Customer Contract
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Quantity
Contract
Create Contract
release Order
for Quantity
Contract
Value Contract
Create Contract
release Order
for Value
Contract
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Product Catalog
The product catalog is the basis for printed and
electronic catalogs. The catalog is maintained in
the SAP ERP System and can be transported to
external systems and processed as templates
for print catalogs or electronic catalogs (CDROM or Internet). IDocs and BAPIs are
available for exporting the catalog data.
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Process Flow Diagram
Product Catalog
Maintain
Documents and
Texts in the
Article Master
Retail Sales Person
Create
Document Info
Records
Add Articles
Layout Areas
Manually
Add Articles
Layout Areas
Using the
Default Article
Create LowerLevel Layout
Areas
Alternative:
Create Layout
Hierarchy
Automatically
Create a
Layout
Hierarchy
Manually
Maintain Texts
and Documents
for Articles and
Layout Areas
Link between
Promotion and
Product Catalog
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Create a
Product
Catalog
Create the
Layout
Hierarchy of the
Product Catalog
Maintain
Layout Areas
Promotional
Sales Prices
Create Basic
Data
Determine the
Pricing
Procedure
Maintain
Articles
Create layout
Hierarchy
Pricing in the
Product
Catalog
Customer
Pricing
Procedure
Create a
Promotion
Product Catalog
Create Basic
Data
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Legend
<Function>
Symbol
Description
Usage Comments
Band: Identifies a user role, such as Accounts
Payable Clerk or Sales Representative. This band
can also identify an organization unit or group,
rather than a specific role.
Role band contains
tasks common to that
role.
Symbol
Diagram
Connection
The other process flow symbols in this table go
into these rows. You have as many rows as
required to cover all of the roles in the scenario.
External
to SAP
External Events: Contains events that start or end
the scenario, or influence the course of events in
the scenario.
Business
Activity / Event
SubProcess
Reference
Process
Decision
Flow line (solid): Line indicates the normal sequence
of steps and direction of flow in the scenario.
Flow line (dashed): Line indicates flow to
infrequently-used or conditional tasks in a
scenario. Line can also lead to documents involved
in the process flow.
Connects two tasks in
a scenario process or
a non-step event
Business Activity / Event: Identifies an action that
either leads into or out of the scenario, or an
outside Process that happens during the scenario
Does not correspond
to a task step in the
document
Unit Process: Identifies a task that is covered in a
step-by-step manner in the scenario
Corresponds to a task
step in the document
To next / From last Diagram: Leads
to the next / previous page of the
Diagram
Flow chart continues on the next /
previous page
Hardcopy / Document: Identifies a
printed document, report, or form
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Financial Actuals: Indicates a
financial posting document
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Budget Planning: Indicates a
budget planning document
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Manual Process: Covers a task
that is manually done
Does not generally correspond to
a task step in a document;
instead, it is used to reflect a task
that is manually performed, such
as unloading a truck in the
warehouse, which affects the
process flow.
Existing Version / Data: This block
covers data that feeds in from an
external process
Does not generally correspond to
a task step in a document;
instead, this shape reflects data
coming from an external source;
this step does not have any
incoming flow lines
System Pass / Fail Decision: This
block covers an automatic
decision made by the software
Does not generally correspond to
a task step in the document;
instead it is used to reflect an
automatic decision by the system
that is made after a step has been
executed.
Financial
Actuals
Process Reference: If the scenario references
another scenario in total, put the scenario number
and name here.
Corresponds to a task
step in the document
Sub-Process Reference: If the scenario references
another scenario in part, put the scenario number,
name, and the step numbers from that scenario
here
Corresponds to a task
step in the document
Process Decision: Identifies a decision / branching
point, signifying a choice to be made by the end
user. Lines represent different choices emerging
from different parts of the diamond.
Does not usually
correspond to a task
step in the document;
Reflects a choice to
be made after step
execution
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Usage Comments
Hardcopy /
Document
Budget
Planning
Unit Process
Process
Reference
Description
Manual
Process
Existing
Version /
Data
System
Pass/Fail
Decision
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