EGN 5620 Enterprise Sys SD Process Fall 2012

8/13/2019 EGN 5620 Enterprise Sys SD Process Fall 2012

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Sales & DistributionProcesses

EGN 5620 Enterprise Systems Configuration(Professional MSEM)

Fall, 2012


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January 2008

SAP AG - University Alliances andThe Rushmore Group, LLC 2008. All

rights reserved. 2

Sales & Distribution Process

1. Engage in pre-sales activities2. Create quotations and send to customers3. Create sales orders

4. Schedule & deliver5. Bill customer (by invoice)6. Receive payment from customer7. Handle sales order return


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Sales & DistributionProcess

SAP Implementation


Fall, 2012


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January 2008


rights reserved. 4

Business Process Integration

Rules

FI

MM

SD

FI SDMM


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rights reserved. 5

Pen IncorporatedProcure for Sales Order

Pre-SalesActivity

Sales OrderDelivery Billing

GeneralLedger

Accounts

PurchaseRequisition

PurchaseOrder

GoodsReceipt

InInventory

Plant orWarehouse

InvoiceReceipt

AvailabilityCheck

NO

YES

Goods toDelivery

Goods fromPurchase Order

InventoryPostings

AccountsReceivable

AccountsPayable


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SAP AG - University Alliances andThe Rushmore Group, LLC 2008. Allrights reserved. 6

Business Process Integration

SD Process


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SalesProcess

January 2008


SAP Sales Order Process

(Order-to-Cash)

Integration

Sales OrderEntry

Post GoodsIssue

InvoiceCustomer

Delivery Note &Pick Materials

Receipt ofCustomer Payment

PackMaterials

CheckAvailability

Pre-SalesActivities

Sales QuotationEntry


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SAP SD Process

1. Engage in pre-sales activities2. Create quotations and send to customers3. Create sales orders, item proposal, or

scheduling agreement4. Schedule delivery and create delivery

note5. Create/send invoice to customer (billing)6.

Receive/post payment from customer7. Handle sales order return


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SD3: Create Sales Order A sales order contains all of the information

needed to process customers request. Theprocess for creating a sales order has thefollowing steps:1. Pricing

2. Credit limit check3. Availability Check

4. Delivering Schedule

5. Shipping point and route determination6. Transfer of requirements to MRP

7. foreign trade and license processing


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SD3-1: Pricing SAP can display pricing information at both the header and

the line item level for sales order.

It enables the user to program varied pricing procedures tomeet individual organizations needs.

The pricing is extendable; it can be attached, or extended toexternal pricing programs or elements outside SAP forpricing.

It also allows Gross to Net pricing: This allows discountsand reductions from the master price.


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January 2008


SD3-2: Credit Check

SAP provides an efficient means to implementcredit management

It is integrated with Financial Accounting (FI), via

credit control area

It automatically alerts when a credit check fails


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SD3-2: Credit Check A large number of outstanding receivables or bad

debts can have a considerable impact on companyperformance.

The user may minimize credit risk by defining a

credit limit for customers by using CreditManagement.

This is especially important if a company does

business with customers in financially unstablesectors or countries, or trade with countries thatare politically unstable or that adopt a restrictiveexchange rate policy.


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SD3-3: Availability CheckAvailability Check

Determines the materialavailability date

Considers all inward andoutward inventorymovements

Allow for 3 methods of

deliveryOne-time delivery ( on-

time one-time delivery)

Complete delivery(possibly delayed one-

time delivery)Delayed proposal (allows

partial delivery schedule)


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SD3-3: Availability Check

In determining the material availability thefollowing elements can be included in theavailability check

Safety stock

Stock in transfer Quality inspection stock

Blocked stock

Restricted use stock All movements of stock


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Inward/Outward movement of goods purchase orders

purchase requisitions

planned orders

production orders reservations

dependent reservations

dependent requirements sales requirements

delivery requirements


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One-time delivery Deliver on the requested delivery date

In this section, SAP checks whether the

requested delivery date can be kept to. If stockof the material is available to make a deliveryon the requested delivery date, the stockquantity is confirmed here.

If there is no stock available, confirmedquantity zero is displayed.


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Complete delivery

In this section, SAP checks whether there will besufficient stock for complete delivery at a laterdate:

If there is sufficient stock available at a later

date to cover the required quantity in the salesdocument, the system proposes the date here.

If the system determines that completedelivery cannot be made at a later date, no

date is proposed in this section.


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Delayed proposal

In this section, SAP checks whether and for whichdates partial deliveries can be made. Partialdeliveries are displayed for different dates. Thesedates are based on the planned inward and

outward movements of stock. During an availability check which takes

replenishment lead time into account, the dateon which replenishment lead time ends is

displayed if insufficient stock means that nopartial deliveries can be made beforereplenishment lead time ends.


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SD3-4: Delivery Scheduling

SAP can automatically schedule essentialshipping activities, using backward andforward scheduling rules.

It uses defined activity times to scheduledelivery activities.


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SD3-4: Delivery SchedulingTerms used in scheduling are defined below.

Transit time is the time in days that is required to deliver goodsfrom your premises to the customer location. It is defined for aroute.Loading timeis the time in days that is required for loading adelivery item. It is determined from the shipping point, the route,

and the loading group of the material.Pick/pack time is the time in days that is required for allocatinggoods to a delivery as well as the time in days that is required forpicking and packing. It is calculated using the shipping point, theroute, and the weight group of the order item.Transportation lead-time is the time in days that is needed toorganize the shipping of the goods. This might include booking aship and reserving a truck from a forwarding agent. It is definedfor a route.


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The following 5 deadlines are of importance for deliveryscheduling:1. Material availability deadline: must start picking and

packing activities on the material availability deadline.This deadline must be selected early enough in

advance so that the goods are ready by the givenloading deadline.

2. Transportation scheduling deadline: the date on

which you must start to organize the transportation ofthe goods. This deadline must be selected early enoughto ensure that the means of transport is available bythe loading deadline.


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3. Loading deadline:the date on which the goods mustbe available for loading and on which all vehicles thatare required to ship these goods must be ready forloading. After the time required for loading the goods

(loading time) has expired, goods issue can be carriedout.

4. Goods issue deadline:the date on which the goods

leave the company in order to arrive punctually at thecustomer location.


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5. Delivery deadline: the date on which the goods are toarrive at the customer location. The difference between thegoods issue deadline and the delivery deadline iscalculated from the transit time required for the route

between the delivering plant and the customer.The delivery deadline can be the customer's requesteddelivery deadline or the confirmed delivery date (that is,the earliest date on which you can deliver goods to thecustomer).


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SD3-4: Delivery SchedulingAn item consists of one or more schedulelines. The schedule line contains all the datathat is needed for a delivery.

For example,

a customer orders 20 units of a particularmaterial which you enter as one item in thesales order. However, you can only deliver 10pieces now and the remaining 10 pieces nextmonth. So you need to schedule two

deliveries.The data for these deliveries (dates, confirmedquantities) are stored in two separate schedulelines.


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SD3.4: Delivery Scheduling

Structure of sales documents

Header

Line Item # 1

Line Item # 2

Schedule Line # 1

Schedule Line # 1

Schedule Line # 2


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SD3-5: Shipping Point and RouteDetermination

A shipping point is determined for each line item

A delivery can only be processed from oneshipping point

Routes - route to be traveled & transit time aredetermined using customized rules

Routes can be used to simply define transit time


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Sales order is transferred to MRP as a CustomerIndependent Requirement (CIR). If a deficit isfound, SAP will propose a purchase req. orplanned order to fulfill the shortage afterrunning MRP or MPS.

Sales and distribution requirements reduceexisting stock or inward movements of stock onthe material availability date to ensure that

other outward movement of stock elementscannot access the quantity reserved in this way.

SD3-6: Transfer of requirements to MRP


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SD3-6: Transfer of requirements to MRP


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SD3-7: Foreign Trade and LicenseProcessing

Predefined trade areas NAFTA, EU

Automated reporting for trade areas

Automated controls

License management Embargo lists

Control by customer, country, product, point intime


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SD3: Create Sales OrderThe sales order document is

made up of three primary

areas: HeaderData relevant for the entire

sales order: customer data,total cost of the order,number of the sold-to party,number of the ship-to partyand the payer, documentcurrency and exchange rate,

pricing elements for theentire document, deliverydate and shipping pointorder

Line ItemInformation about the specific

product: Ex: material andquantity, cost of anindividual line

Schedule LinesUniquely belongs to a Line

Item, contains deliveryquantities and dates forpartial deliveries


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SD3: Create Sales Order

Item DataWhereas data in the document header applies to all itemsin 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 (analternative ship-to party or payer can be defined for aparticular item)

Plant and storage location specifications Pricing elements for the individual items Schedule line data


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January 2008 SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rightsreserved. 33

SD4: Schedule delivery and createDelivery notes 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

Picking

Packing

Loading

Post Goods Issue

DeliveryNote

Each step inthe deliveryprocessupdates thedeliverynote status


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Delivery/ Goods Issuing

Reconciliation AccountSales quotation

Sales order

Materials Management (MM)and Financial Accounting (FI)

Delivery/GoodsIssuing

No impact onFinancial Accounting (FI)


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SD4: Shipping

OrderCombination

Sales Order 1

Sales Order 2

Sales Order 3

Delivery 812

PartialDelivery

Sales Order 4

Delivery 813

Delivery 814

Delivery 815

CompleteDelivery

Sales Order 5

Delivery 816


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DS5: Billing Overview

SAP has the functions of processingcredit/debit memos and rebates

It automates invoicing, based on salesorders and/or deliveries

It can create pro forma (paper) invoices It is integrated with Finance (FI) &

Controlling (CO)

It updates customers credit data

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DS5: Billing

Sales Invoice

Sold To:Rushmore Group

Sales Org: S001Dist Channel: REDivision: 01

Conditions/Price:

$120


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DS5: Billing Methods

CollectiveInvoicing

Delivery basedInvoicing

Delivery 834

Delivery 833

Order 14

Order 9

Delivery 856

Invoice 968

Order 6Delivery 820

Delivery 821

Invoice 945

Invoice 946

SplitInvoicing

Order 32 Delivery 886

Invoice 992

Invoice 991


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DS5: Billing Documents

It explicitly specifies documents

Billing due list builds a work list ofinvoices that should be generated

Automatic posting to Financial Accounting(FI): debit to customer sub-ledger accountand credit revenue account.


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DS5: Billing Plans

Periodic total amount for a plannedbilling period

Milestone distributing the total amount

over multiple billing dates - typically usedwith the project system (PS)

Installment evenly proportionedamounts and defined payment dates

Resource related consumed resourcessuch as service or consulting


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SD6: Payment

Payment is the final step in the sales orderprocess.

SAP posts payments against invoices.

The posting clears the liability in the A/Raccount and increases your bank account.


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SalesProcess


SD7: Handle Customer Return

Customer ReturnOrder received

GoodsReceipt

CreateCredit Memo

QualityInspection

Paymentto Customer

DeliveryNote


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1

2

3

Order 14 Delivery 856

Return Order Return Delivery

Invoice 968

PaymentCredit Memo

QualityInspection

Return to Inventory


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Returns document Billing block can be proposed

Use the Order reason field to identify thereason for the return

Full access to pricing and ability to re-price

Return delivery Issues a goods receipt to place material into

inventory


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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)


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PEN, Inc.


Fall, 2012

Sales & DistributionProcesses


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Sales Quotation


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Sales Order


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SD Process: Billing DocumentsAt this point

that the salesprocess ispassed overto FinancialAccounting to

awaitpayment.


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Document Flow

The document flow feature allows you tofind the status of an order at any point intime. The SAP system updated the order

status every time a change is made to anyof the documents created in the customerorder management cycle (Order to Cash).


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Exercises:144a. Create customer quotation

144. Create sales order from sales quotation

145. Check stock status

146. Create delivery note for sales order

147. Check stock status

148. Picking materials on delivery note

149. Post goods issue150. Check stock status

151. Bill customer

152. Post receipt of customer payment

153. Review document flow

154. Create Customer Material Info Record155. Create sales order using customer info record

156. Create delivery for sales order

157. Pick materials on delivery note


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