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The Sales Order Process in ERP ….integrating people and technology

Author: Tom Matys

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Why Marketing & Sales (M/S)?

Companies must stay competitive! They can never claim that they’ve reached their destination.

We’re Here!

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Overall Business Functions

Marketing & Sales (M/S): Takes Orders

Supply Chain Management (SCM): Assembles (Production/Inventory/Warehouse)

Account & Finance (A/F): Invoices

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M/S & SD: Sales Order Process

The Sales & Distribution (SD) Module:• Pre-sales processes

Create Inquiry (Quotation) (Trigger)•Sales Order processing.

Create Sales Order •Shipping

Create Outbound Delivery Pick/Fulfill the Outbound Delivery Post Goods Issue (PGI) the

shipment/delivery•Invoicing

Create Invoice Collect Payment

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But, It’s All About the Integration, Right?

Human ERP Integration: M/S employees are responsible for triggering the electronic/technical process in an ERP system. Also, for communicating with SCM and FI Departments when needed.

Technical ERP Integration: SD is the SAP module (logic) that executes in the background and streamlines information with SCM (Supply Chain Management) and FI (Finance) modules.

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SD Integrates with FI (Finance)

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SD Integrates with MM(Materials Management)

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Sales Orders are Created By Organizations

• Sales OrganizationThe sales organization represents the selling unit in the legal sense. It is

responsible for example for product liability and other rights of recourse; customer deliveries; business partner contacts; and direct mailing campaigns. It also helps you to offset business operations internally.

The highest hierarchy in the organizational structure

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Sales Orders are Created By Organizations

• Distribution ChannelDefinition: The distribution channel is the channel throughWhich products reach the customer.Use: Each distribution channel is assigned to a sales org.

Is second in the hierarchy of the organizationalStructure, beneath the sales org.

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Sales Orders are Created By Organizations

• Sales Division Definition: You can use divisions to organize materials or services, for example to form product groups or lines.

Is third in the hierarchy of the organizational Structure, beneath the sales org. and Distribution Channel.

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Other Sales Order Input

Sold To Party: A business partner to whom you sell a product. To access the business partner master, on the SAP Easy Access screen, choose Master Data  Business Partners  Display Business Partners.

• Purchase Order Number: A purchase order is an official and binding document issued to a vendor authorizing the expenditure of funds for goods and services. Transaction ME23N.

• Required Delivery Date: The date that the customer expects the product.

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Master Data in SDMaster data is information that is key to the operation of a business. It is the primary focus of the IT discipline of Master Data Management(MDM). This key business information may include data about customers, products, employees, materials, suppliers, and the like.

Using transaction SE16 you can view the following Master Data Tables in SAP ERP:Vendor Master Data: LFA1Customer Master Data: KNA1Material Master Data: MARA

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Customer Order Process

InquirySalesOrder

1 2

AvailabilityPricing

Sales andDistribution

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Customer Order Process

DeliverySalesOrder

3

5Pick

MaterialsManagement

Goods Issue

Delivery

4

Delivery

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Customer Order Process

Invoice

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Sales andDistribution

AccountsReceivable

Delivery

Receivable

Post

Receivable

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Debugging ToolsDocument Flow

Gives Order Process Status

List of Sales Orders (VA05)Tool to Find Order

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Steps in Sales Process

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List of Sales Orders (VA05)

Specify Organizational Data

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Search by Organizational Data

Enter student’s Sales Organization (##FS)

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Execute List Report

Click enter to generate list

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Display Orders

Identify order(s) created by studentSelect students orderSelect Document flow

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Determine Status

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Process Example

Trigger: Create Sales Inquiry (Quote)

Create Sales Order

Create Delivery

Pick the quantity needed for the delivery

Create Goods Issue for Shipment Create Customer Invoice

Customer Payment Receipt

Sales & Distribution (SD) Module

M/SStop Here

Remember….

• Wherever you see XX or 00 (Your USER ID)

• A deduction of 10% of the lab grade points will be deducted from the lab if your user ID is rejected due to too many log on attempts

If you log on once and it does not work, then find your password that was written down to confirm it, and look at all of the input fields to make sure that they are correctly entered….before you try a second attempt. If your second attempt fails, call the instructor before trying a third time.