TSCM-60 Notes

Contents

Unit 2 Overview of Sales Processes

Process Map

Pre-sales activities
Establishing and maintaining customer relations Activities include: o Entering and tracking customer contacts o Mailing campaigns o Answering customer telephone queries o Inquiries o Quotations

Sales Order Processing

The employees at the Customer Service department receive the orders via phone (for example) and mail. Standard Orders normally contain: o Customer and Material information o Price information for all financial statement items o Information about delivery dates and delivery quantities o Information about shipment processing o Information about billing 3

Procurement
In this step in SD you can: o Check the availability of the ordered goods and o Transfer the requirements to materials planning Materials Planning (MM) organizes and monitors the actual procurement process, which may include: o Inhouse-produced and/or o Purchased Products Procurement can: o Result from available stock o Be guaranteed by replenishment (PRPO or Planned Order Prod.Order for example) o Trigger Make to Order production o Order the outbound delivery via 3rd parties o Organize the outbound delivery via another warehouse (Stock Transfer)

Shipping
Shipping processing supports: o o o o Creation of Outbound deliveries Picking (by the use of transfer orders) Packing Posting of Goods Issue

Billing
Billing supports: o o o o Creation of invoices for goods and services Creation of Credit/Debit Memos Cancellation of previously posted billing documents Automatically transfer billing document data to controlling

When billing is carried out, G/L accounts are normally automatically determined and relevant data is posted. System carries out the following: o o A debit posting on the customer receivables account A credit posting on the revenue account

Payment
Payment is a process that is part of the Financial Accountings module Payment supports: o o Posting payments against invoices Reconciling differences

When posting a payment, G/L is automatically updated, and the system carries out the following: o o A debit posting on the cash account A credit posting on the customer receivables account

Unit 3 Master Data in Sales and Distribution Processes

Customer Master Data
General Data Valid for all Organizational Units in a Client (ex: Addresses) Sales Area Data Valid for each Sales Area (ex: Sales, Shipping, Partner Functions) Company Code Data Valid for each Company Code (ex: Account management) Changes in Customer Master data is not affecting already created documents, only exception is Addresses which always are kept current

Material Master Data

Consists of following Areas: o Basic Data Relevant for all areas and is common for all Org. Units in the system Sales & Distribution Data SD Relevant, valid for each Sales.Org and Dist.Channel Purchasing Data Accounting Costing

o o o

Material is Division specific 5

By activating the use of Cross-Division in the Sales document type we can enter more than one division in a Sales Order

Customer-Material Info Record

Customer specific master data Priority over Customer Master and Material Master Used for: o o Cross-Reference of Customer Material Our Material Specific shipping information such as: Delivery Tolerances, Partial Delivery (Yes/No?) and Default shipping Plant

By using the Ordering Party-tab we can enter customers material number and the system will automatically use our material if a Customer Material Info Record is maintained

Condition Master Data (Condition Records)

Types Prices o o o o Material Price Price list Customer specific other

Surcharges& Discounts o o o o o o o o For the customer For the material For the price group For the material group For the customer/material For the customer/material group For the price group/material group Others 6

Freights o o Freight INCO-terms 1+2 Other

Taxes o o VAT Other

General We can define condition records to be dependent on a lot of data. For example we can maintain a material price on a customer basis, or let a discount be dependent on Customer/material group Condition Type defines multiple uses of a condition %, Quantity- or Amount dependent Surcharge/Discount depending on Condition Type Validity Period can be used for restricting pricing agreement within a period Scales can be used Pricing is carried out using the Condition Technique

Output Master Data

Output Determination uses the Condition Technique Transmission Medium, Time, and Partner Function for an Output Type is defined in the Output Master Data

Incompleteness
Each Sales Document contains data that is required for either the document itself or for further processing The system determines which fields will be displayed in the incompletion log In SPRO we can define which fields that should be part of the incompletion log

Common Master Data

If we dont need the master data (Customer/Material and Condition Master data) to be different according to distribution channels, we need to set up a Representative Dist.Chan. 7

Master Data for the representative distribution channel applies to all distribution channels we have assigned to the representative in SPRO.

Above can be applied on Divisions as well

Unit 4 Sales and Distribution Processes Data Determination and Collective processing
Function of the Sales Document Type

Different business processes can be identified and controlled by means of the Sales Document Type. Examples of types in the standard system: o o o o Standard Order Invoiced sales on a fixed date Rush Order/Cash Sales Sales from a plant (With or Without Invoice) Free Deliveries sales on fixed delivery dates (Without invoice) Returns Return goods (Credit memo/Replacement delivery)

Sales Document Type controls the Sales Documents. In similar ways, Delivery type controls the shipping documents and Billing type controls the billing documents Examples of settings that can be conFigureed/controlled: o o Pricing is not needed for free deliveries Define an output group that can be used for processing sales orders and then create another output group for processing contacts Outputs contain information that is exchanged between business partners, such as order confirmations, billing forms, electronic messages between colleagues etc. 9

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Plant, Shipping Point and Route Determination

Plant The plant plays a central role in Logistics and in Sales, it is the Delivering Plant When processing an item the system tries to assign the plant according to following search strategy: o 1st Customer Material Info Record 2nd Customer Master Record of the Ship-To party 3rd Entry in Material Master Record

Further processing is normally impossible without a delivering plant since: o o o Automatic determination of Shipping Points and Taxes fail Availability checks fail Outbound Delivery creation fails

Shipping Point Determination The Shipping Point is an Organizational unit Responsible for processing shipping For Shipping Point, Preparation and packing lead times can be defined Normally determined automatically for each item in the sales document Determined by combination of: o o o Shipping Condition from the Customer Master (Sold-To party) Loading Group in the Material Master Delivering Plant

Route Determination Route is the path an Outbound delivery follows from Delivering plant to the Ship-to party Can contain one or more sections Always has a start point and an end point Can be used for defining the actual transit time and lead time for transport planning Normally determined automatically for each item in the sales document Determined by combination of: 11

o o o o

Departure Zone in customizing for Shipping Point Shipping Point in Customer Master (Sold-to party) Transportation Group in Material Master Transportation Zone in Customer Master (Ship-to party)

Shipment Scheduling In Shipment and Transportation Scheduling we define the time at which goods receipt can be confirmed at the customer (Confirmed Delivery Date) Different lead times are taken into account: o o o o Preparation time Loading time Transport lead time Transit time

Data used in shipment scheduling: o o Order Date Date on which the order is placed Material Availability Date Date by which a sufficient quantity of goods must be available for picking and packing Loading Date Date on which the pick/pack-process is completed so that loading can begin on time Goods Issue Date Date on which the goods must leave the delivering plant so that the goods reach the customer on the Confirmed Delivery Date Delivery Date Date on which the goods arrive at the customer

We differentiate between following delivery dates: o Requested Delivery Date Date on which the customer would like goods to arrive Confirmed Delivery Date Date on which we have confirmed a customer goods receipt When determining delivery date, we can also take the route into account

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o o o

Total time includes: Transit Time Time required for transporting the goods to the customer Transportation Lead Time Time required for prepping the goods for transp.

The goal for shipment and transport scheduling is to confirm a delivery date for a material For Backward Scheduling, the customers requested delivery date is used to calculate the Material Availability Date and Transportation Lead Time. The outbound delivery must be created at the earlier of the two dates (Selection Date for the outbound delivery). o If both dates are after the order date and the material is available on the MAD, the customers requested delivery date can be confirmed A Schedule Line is created for the sales doc. Item. The date of the schedule line displays the confirmed delivery date and will be the same as the Requested Delivery Date. If one of the two dates is before the order date, confirmation of the requested delivery date cannot take place. Therefore, the system tries to determine the next possible date (Forward scheduling).

Forward Scheduling takes into account the time parallels of the work flows for Transportation Planning and Pick/Pack Time of the materials. The longer of the two periods is relevant for scheduling. The Selection Date of the outbound delivery is the earlier of MAD or Transport planning date. o The earliest date at which the material is available at the WH is the new Delivery Date. This is the new outgoing point for new delivery scheduling Two schedule lines are created in the system: The date of the first schedule line corresponds to the customers requested delivery date and has no confirmed quantity The date of the second schedule line shows the confirmed delivery date and the confirmed quantity.

o o

Collective Processing Pages 175 184 in TSCM60

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Unit 5 Availability Checks

Basics
Triggered when there is an insufficient stock for a material Carried out if: o o The material requires an availability check The availability check is set in SPRO for this transaction

Material Availability Date is determined from delivery scheduling. On this date, enough material has to be available in time for delivery to the customer for their requested delivery date. The system calculates MAD by working backwards from the Requested delivery date Availability is checked for the delivering plant on item-level

Control of availability check

In customizing, we can define which elements that are included in availability check. We can for example: o Define which types of stocks Safety Stock Stock in transfer Stock in quality inspection o Define which inward movements Purchases Planned order o Define which outward movements Sales Orders Reservations from MM o Should be included in the check

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Requirements transfer
Communication between SD and Procurement is carried out via requirements. The transfer of requirements can affect the availability check Employee responsible for materials planning receives information about sales orders in the system and the quantities that SD needs to deliver the orders Material for the order can come from both in-house production as well as external procurement If there is insufficient stock available, purchase orders can be made via Materials planning

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Complete and partial deliveries

Any agreements made with the customer affects the result of the availability check o Depending on the agreements for complete/partial delivery in the customer sales order, we can deliver an order in one complete delivery or several partial deliveries In a complete delivery all items with the order quantity is delivered For partial deliveries we can distribute items or quantities from one order between several deliveries The indicator for controlling complete/partial deliveries is proposed from the customer master record The proposal for the item level comes from the customer material info record, if a customer and material agreement has been maintained there. o Above two indicators can both be changed during sales order entry

If Complete Delivery is chosen, we can determine that all the items in an order must be delivered together. o We can also, on item level, decide if we want to split the delivery quantities.

Partial Delivery agreements: o o o o o Blank Partial delivery allowed A Create a delivery with qty > 0 B Create only one delivery (also with qty = 0) C Only complete delivery allowed D No limit to subsequent deliveries

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Sample Scenarios
Case 1 Confirmation on the Requested Delivery Date

Figure Case1 Confirmation on the Requested Delivery Date

Using delivery scheduling, the system checks if the goods will be available for the MAD Availability Check includes following: o o o Current Stock Planned inward movements (such as POs, PRs, and Planned Orders) Forecast outward movements (such as existing SOs and deliveries)

For Case 1, the situation regarding outward movements is as follows: Existing inward movements are: o o Stock: 100 pcs Existing Purchase Order with qty of 50 and 60 pcs

Future outward movements: o Sales Orders with qty of 100, 40, and 50 pcs

We now enter another SO for 10 pcs o System carries out delivery scheduling (backward scheduling) based on the customers requested delivery date, and determines the MAD, it then runs an availability check for that date

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The availability check shows that the system can confirm the 10 pcs for the requested delivery date

Figure - Result

Case 2 Confirmation for a Later Date

Figure Case2 Confirmation for a later date

The Original situation for case 2 is the same as case 1. Existing inward movements are: o o Stock: 100 pcs Existing Purchase Order with qty of 50 and 60 pcs

Future outward movements: o Sales Orders with qty of 100, 40, and 50 pcs

In this case however, the customer demands complete delivery We now enter a sales order with a qty of 20 pcs o The system carries out delivery scheduling (backward scheduling) based on the customers requested delivery date, and determines the MAD. It then runs an availability check for that date

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Figure Case2 Result - Confirmation for a later date

In case of stock shortage, the system uses the availability check and delivery scheduling to determine the next possible date on which the goods can be confirmed for the customer Due to Complete Delivery the quantities cant be split up. o 20 PCS has to be confirmed on a later date

Based on the MAD, the system uses delivery scheduling (forward scheduling) to calculate the confirmation date for the 20 PCS

Case 3 Partial Deliveries

Figure - Case3 Partial Deliveries

If the Customer and Sales Document Type allow it, the required SO qty can also be split into several partial deliveries The situation in Case 3 is the same as for Cases 1 and 2: Stock: 100 PCS Existing Purchase Orders with qty 50 and 60 PCS Following future outward movements exist: 19

Existing SOs with qty 100, 40 and 50 PCS

In Case 3, however, the customer needs the goods as soon as possible and allows us to split the material into several deliveries, if necessary. In this situation, we now enters a SO with Order qty 20 PCS The system carries out delivery scheduling (backward scheduling) based on the customers requested delivery date and determines the MAD. It then runs an availability check for that date

Figure Result for Case 3

When there is not enough stock, the system uses the availability situation and delivery scheduling to determine the next possible date for which the goods can be confirmed to the customer The partial deliveries permitted agreement means that the quantity can be split up We can confirm the 20 PCS for two later dates, each with 10 PCS o Using the MAD, the system uses delivery scheduling (forward scheduling) to calculate two partial deliveries, each with 10 PCS

Case 4 - Check with Replenishment Lead Time

Figure Case 4 - Check with Replenishment Lead Time

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We can take into account all inward and outward movements. It is however recommended that we only implement an availability check at the end of the replenishment lead time The replenishment lead time can be specified for each material: o o Trading goods: planned delivery time + goods processing time Finished goods: in-house production time

The system assumes that the material will be available at the end of the replenishment lead time, at the latest Availability Check is only run until the end of the replenishment lead time If we check availability in Case 4 without including replenishment lead time, the result will be the same as for Case 2. The customer requires a complete delivery. We cannot make 20 PCS available until the same date on which the last purchase order for 60 PCS arrives (Inward Movement) However, if the system does an availability check using the replenishment lead time, we can confirm 20 units for the requested date

Backorder Processing

Two types of Backorder Processing: o Manual with Backorder Processing We can use backorder processing to list sales documents for materials and to process them manually with reference to the confirmation. This means that ATP quantities can be reassigned and any shortfall cleared. o Via Rescheduling We can use the delivery priority (proposed from the customer master record for the sales order) as a sorting criteria in automatic rescheduling

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Transportation Processing

Figure Document Flow with Outgoing Shipment

The Shipment function is optional It can be used to combine deliveries with the same transportation requirements such as, forwarding agent, destination, route, or means of transport Normally, shipment is created before posting GI The settlement of shipment costs from the shipment is also optional

Figure Creating Shipments

Using the Create Shipment function, the system determines the deliveries due for transportation and creates the shipments required The individual deliveries can be assigned to the shipments manually. The sequence of the deliveries within a shipment is determined automatically from the sequence in which they are listed

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Figure Loading and Packing Shipments

At the time of shipment, items which were not already packed in the delivery can be packed in shipping units using shipping materials. The functionality used here is basically the same as for deliveries. However, items cannot be generated or entered manually for inventory management/billing Packed items are assigned to the required means of transport (trucks, for example) Shipping units from the delivery are copied and can no longer be changed Unlike packing for deliveries, packing for shipments can be done for multiple deliveries

Figure Billing the Shipment Costs to Customer

We can invoice the customer for shipment costs, which are based on effective shipment costs, that have been calculated in the transportation and shipment cost processing areas for settlement with the forwarding agent. The freight costs then appear as an additional entry in the customer billing document

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Figure Connection to Financial Accounting

The system transfers billing document data in Invoices, Credit and Debit Memos to financial accounting and posts this to the determined accounts We can set accounting determination to be dependent on various different criteria in Customizing, such as: o o o o o Chart of accounts Sales Organization Account assignment group of the payer Account assignment group of the material Account key, Setting account determination requires agreement from financial accounting and cost accounting, for the reasons mentioned above

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Unit 6 Sales and Distribution Processes with Make-toOrder Production

Presales Processing

Figure Presales Activities

Figure Presales Documents

Figure Document Flow in the Presales Phase

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Function of the Item Category

Figure Item Categories

Item Categories adds additional control functions for the sales documents An Item Category can for example influence: o o o Whether the system runs Automatic Pricing Whether the item appears on an invoice Which fields are recorded in the incompletion log if they were not entered in the SO Which Partner Functions belong to the item Whether the item appears on a delivery Whether you can create Schedule Lines for the item

o o o

Figure Item Category Determination - Normal Item (NORM)

The Item Category in the Sales Document is found using the Sales Document Type and the Item Category Group from the Material Master (for example)

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Item Category Group is maintained in material master on the Sales:Sales Org. 2 tab page

Figure Item Category Determination in the Standard Order

Another Item Category than that for a material with item category group 0001 is found for a material with the item category group NORM

Assembly Processing
Make-To-Order Flow

Make to order production is characterized by the fact that materials are not stored in the WH, but produced especially for a certain SO An individual Customer Requirement is generated from the Sales Order Item and transferred to Materials Planning (PP) We can use materials planning to plan requirement. Once this has been done, production is carried out. After the products are manufactured, we post it by Goods Receipt to the SO Stock for the particular order item. As soon as delivery is due, an Outbound Delivery is created, and GI is posted, then we do billing

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Figure Make-To-Order without Assembly Processing

The requirement quantity (Planned Independent requirements), Delivery Date, and ConFigureation Specifications are transferred from the Sales Order to Materials Planning as an Individual Customer Requirement We then use a Planning Run to generate a Planned Order. Here Bills of Material are exploded and dependent requirements for the assemblies and components are generated As soon as production starts, we create a production order from the planned order The system returns the confirmed qty and delivery date from the Production Order to the Sales Order

Figure Make-To-Order Production with Assembly Processing

The individual components for the final product have already been produced for Make-To-Order production with assembly production. You then only need to assemble the components according to the customers wishes. This means that we just need a One-level BOM explosion and we do not need to generate dependent requirements o This means that we do not need a planning run at this point for MTO production with assembly processing. We can create a Production Order directly from the SO

The system returns the confirmed qty and delivery date from the production order to the Schedule Lines in the Sales Order

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Any changes made to the Confirmed Schedule Line or the delivery date are immediately visible in the SO and/or in the production order

Figure Cost Management per Item

In Sales Order Processing, the costs and sales revenue for a sales order item are collected in a controlling object for that item and settled in a profitability analysis Pricing in the sales order determines the planned sales revenues(net value 2) and the actual sales revenue is posted in the billing document The planned costs are compared to the revenues. They arise from product or unit costing, or from the valuation price in the material master (Standard Price or Moving Average Price) The actual costs are calculated from the withdrawal, production orders, internal activity allocation and surcharges The accrued actual sales revenues and costs are settled in the profitability analysis to determine profit or loss

Figure Packing

During Packing, delivery items can be assigned to packaging materials. The handling units created by this can then be packed in additional packaging materials

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Figure Delivery from Sales Order Stock

After the material has been produced, it is posted as a GR to the sales order stock o Sales order stock is special stock which can be used only for the special sales order

During GI of the Delivery, the sales order stock is reduced accordingly

Figure Assembly Processing with Variant ConFigureation Example

When the attributes of a material are not predefined and there are many possible variations, we can define them in the sales order or in the context of a variant conFigureation A conFigureation profile must exist for every conFigureable material. We use it to define specific attributes of the conFigureation The material is assigned to one or more classes in the conFigureation profile or in the Material Master Each class contains one or more characteristics which represent the variable attributes of the material

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We can define each possible values (characteristics values) for each characteristic We can maintain surcharges/discounts for characteristics values, which affect pricing

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Unit 7 Complaints Processing

Credit Memo Requests
Overview

Figure Processes in Complaints Processing

We create returns, credit/debit memo request, credit/debit memo, or an invoice correction after we have: o o Created a sales order Delivered the goods to the customer and billed for the goods

Create a returns request (authorization) if the customer returns the goods Invoice correction is created if there is a price or qty deviation Returns or credit/debit memo can be created with reference to a SO or Billing Doc. Invoice correction request or credit/debit memo (without credit/debit memo request) is created with reference to the billing document For returns, credit/debit memo request or invoice correction request, billing takes place after checking and approval, by creating a credit/debit memo

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Processing

Figure Processing Credit and Debit Memos

Credit/debit memo requests can be created with reference to a billing document or a SO, in order to automatically determine the correct amount for the preceding document Order Reason needs to be entered for evaluation purposes Credit/debit memo request contains a billing block in order to prevent immediate billing o It is approved by removing billing block

Return, credit memo request, debit memo request and invoice correction request documents contains a billing block o Unjustified complaints are rejected and the reason for the rejection is entered against the item(s) in question Rejected items are not copied to the billing documents, however they are still available for evaluation purposes

Returns

Figure Returns Processing

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Returns can be created with reference to a billing document or a SO, since copying control then transfers all required information from the preceding documents Order reason to be entered for evaluation purposes Billing block used for approvals Goods Receipts is posted for damaged/defective goods upon arrival in a returns delivery. o GR usually posted to a separate returns stock and not to unrestricteduse stock Posting can be made before or after credit memo has been created

Once billing block is removed, credit memo and the required accounting documents are generated as a result of the billing process o The correct amount is automatically credited to the customer account This step can be carried out independently of the creation of the inbound delivery of the damaged/defective goods

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Invoice Correction Requests

Invoice correction is used to correct qty or value for which the customer already has been billed Invoice correction is always created with reference to the incorrect billing document The customer will receive a document containing following: o o o The qty and price that were originally calculated The correct qty and price Amount credited/debited to/from the customer account

In the invoice correction request, a credit/debit memo is generated for each item on the incorrect billing document o When processing begins, the net value is therefore zero

Changes can only be made to the debit memo items o Net values to be credited are derived from the differences between the credit and debit items

Credit/debit items are always deleted in pairs, non-changed item pairs can be deleted

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Cancelling a Billing Document

A billing document may have to be cancelled, for example, if the payment terms or address of the payer have changed In this case, a separate billing document (cancellation billing document) is created along with a new accounting document, this revises all previous postings by reposting each item with the opposite symbol

Advanced Returns Management (EHP4)

Pages 316 - 320

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Unit 8 Analyses for Sales and Distribution Processes

Lists and Reports
overview

The Sales Information System (SIS) belongs to Sales and Distribution. With SIS we can compress data from SD documents to obtain information for making strategic business decisions. SIS consists of both standard analyses as well as flexible analyses for evaluation of statistical data. SAP provides list functions to create worklists in sales, delivery, picking and billing The Logistics Information Library allows us to integrate standard and flexible analyses as well as our own reports LIL can be structured and enhanced according to our needs In case standard reports do not fulfill our needs, SAP queries can be used to extract information from the database into a report

o o

Lists

Worklists: Billing due list and Delivery due list 37

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Unit 9 Company Structures Customizing

Enterprise Structures in Sales and Distribution

Objectives Achieve flexibility in modeling and representing complex corporate structures Adapt to changes in corporate structure Distinguish between views in logistics (Sales and Distribution, Purchasing, etc.), cost accounting and financial accounting Process data across company codes

Integration of sales in Financial Accounting All organizational units within a client are subject to one business control. A client can thus be seen as a synonym for the group A client is a self-contained technical unit. General data and tables that are used for multiple organizational structures are stored at this level We can use the company code and business area to represent a group from a financial accounting perspective We can create multiple company codes in one client in order to carry out financial accounting for several independent companies simultaneously Each company code represents an independent accounting unit. Several company codes can use the same chart of accounts A business area is a separate business unit for which cross-company code internal reporting can be carried out. Business areas are not limited by company codes. For this reason, the business areas in all company codes 39

must have the same description. Usage of this organizational unit is optional We use business areas if we want to calculate profit and loss statements independently of the company code. In the case of postings made from sales and distribution, the business area can be derived automatically

Organizational Structures in Sales

Overview A variety of organizational units are at our disposal for modeling sales business transactions. In the sales area, the following organizational units can be defined and used for mapping and building up the sales structures: Sales Organization Distribution Channel Division Sales Area Sales Office Sales Group

Other organizational units in sales includes (but are not limited to) shipping point and transportation planning point Sales Organization A sales organization represents the organizational structures in sales and distribution. Each sales organization represents a selling unit as a legal entity.

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It is, for example, responsible for product liability and other customer rights of recourse.

We can use sales organizations to subdivide markets into regions. Each business transaction is processed within a sales organization A sales organization is assigned to exactly one company code A sales organization is assigned to one or more plants Each sales organization has its own master data

Distribution Channel Distribution Channels provide a general structure for distributing goods Examples o o o o End Customer Wholesale trade Sales to industrial customers Direct sales from plant

Master data such as customer master data, material master data, prices, and surcharges/discounts can be varied depending on distribution channel

Division Product ranges can be divided into divisions Division-specific sales structure can be defined in SAP Examples o o o Cars Motorcycles Hi-Tech

Material is division specific and cannot be shared between other divisions since it is a field in master data Within a division we can make customer-specific agreements, for example regarding partial deliveries or pricing

Sales Area Sales Area is a combination of:

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o o o

Sales Organization Distribution Channel Division

Sales documents, delivery documents, and billing documents are always assigned to a sales area and every sales process takes place in one sales area The relevant master data can usually be maintained explicitly for each sales area, for example: o o o Sales relevant customer master data Sales relevant material master data Conditions (prices, surcharges/discounts)

Analyses can be carried out within a sales area

Sales Office Sales Offices define geographical aspects of the organizational structures in business development and sales. A sales office can be viewed as an actual office or perhaps a territory or region. Sales Offices can be assigned to multiple sales areas. Sales Groups Employees of a sales office can be assigned to sales groups assigned for each division or distribution channel. Sales groups are assigned to sales offices

Salesperson A sales group consists of a certain number of salespersons. A salesperson is assigned to a sales office and a sales group in the sales employee master record. Thereafter, we can select this personnel master record in the partner screen of a sales document Plant Materials management is mostly about the flow of materials within a company. Production facilities and locations for storing of stock must therefore be defined in the system. The terms used in the system for above are Plant and storage location, respectively. A plant can either be a location for production and MRP or it may simply be one or more stock locations close to each other. Each plant is uniquely assigned to a company code 42

For a plant to deliver goods properly, it needs to be set up as a delivering plant in sales customization. During sales process, the delivering plants are first used to verify the stock, and later to supply the goods the customer has ordered. Delivering plants must be assigned to a Sales organization and a Distribution channel (Distribution Chain) in Customizing It is possible for a plant in a distribution chain to belong to another company code than the sales organization. This is known as CrossCompany Sales

Unit 10 Sales Order Processing

Information Sources and Data Transfer
Overview Sources for Document Data

During input for sales documents, the system uses above sources of information for default data and fixed reference data Each sales order is assigned to a unique sales area. When entering a sales order, we dont necessarily need to enter the sales area immediately. Instead we can let the system derive the sales area from the Sold-to party. o If there are master data for the sold-to party in multiple sales areas, there will be a selection screen appearing where we can choose the required sales area.

Business Partners from the Customer Master The essential business partners for a sales transaction are: 43

o o o o

Sold-to party Ship-to party Payer Bill-to party

Above partners play each a specific role in the business process. (partner functions) We can maintain customer master data for each of above partner functions If we dont enter a sold-to party in the sales document, the system can automatically determine one for us from the ship-to party. o If there is exactly one sold-to party for the ship-to party, the system does this automatically. If there are several possible sold-to parties for the ship-to party, the system displays a selection screen with the possible alternatives If a sold-to party cant be determined, an error message will be displayed in the status bar A message also appears if we entered a ship-to party in the sold-to party field inadvertently. The system continues the processing as if we entered a ship-to party in the ship-to party field

Proposing Order Data from the Customer Master The master data in the sales document is taken from the master records for the partner functions o o Delivery address and control information is taken from the ship-to party Payer is responsible for payment, and thus, payment conditions are taken from the payer master record Bill-to party contains the address to which the invoice should be sent This address might differ from the payers address Business Data We can define business data (such as payment conditions, INCO-terms) at document header level or for each item. We can decide in Customizing for the Item category whether business data at item level should be able to differ from business data at header level. o This option is configured separately for each item category.

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This allows us to create sales documents containing both items in which business data must be identical to the sales document header and items that allows different business data.

Proposing Plants Automatically The Plant is an integral part of Logistics. It assumes the role of Delivering Plant in sales. When entering an item to be delivered, the system attempts to determine a plant automatically from the master data. If the search is successful, the results are copied to the document item. We can change the delivering plant manually. During the search these master records are checked (in order): o o o Check if plant can be proposed from customer material info record Check customer master record Check material master record

If there isnt a plant defined in the material master record, no plant can be determined. And if a plant cant be determined, no other document data can be determined either. o For example, it would not be possible to automatically determine shipping point. Furthermore, no availability checks are possible, and no delivery can be created.

A USER EXIT can be used for enhancing the determination of plants.

Selected Entry Aids and Techniques

Sales Summary The sales summary helps to create documents by displaying a variety of relevant information about the customer. This information is available using a pushbutton at any time during document processing. The information in the sales summary is grouped into info blocks on various topics. We can configure the info block views according to topic ourselves in Customizing.

Changing of Sales Documents There are two options available for changing document data: o Fast Change Function allows us to change several or all items of a document at the same time. Changing Several Documents can be done using the document list. Changeable items can be: plant, currency, materials, and pricing. The 45

mass change tool supports comprehensive changes to the selected sales documents. Blocks In sales orders, we can block the following transactions: o o For Shipping For Billing

Billing block and delivery block can be set at either header or item level. o Delivery blocks can be customized in their behavior.

Rejection Reason for rejection can be set for one or several items. We can create a suitable copying requirement in copying control in order to prevent these items from being copied into subsequent documents. Changes to the Sold-to Party in the Sales Document

Sometimes it might be suitable to enter items before Sold-to Party in a sales document, for example when taking an order via telephone o Since a Sold-to Party is always required when creating a sales order, a default value must be present in order to save the document. We can do this either via user-specific parameters, or depending on the sales document with a transaction variant. The incompletion log of the sales document ensures that the person responsible replaces the default customer value with the actual Sold-to Party. To do this, the Default Sold-to Party must be flagged as such in the customer master (activate customer type Default SP). o When the Sold-to Party is changed, the checks are run again, and as a result a variety of data is re-determined (see picture above).

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We can also change the Ship-to Party later on in the overview screen. However, the system does not re-determine the Sold-to Party in that case.

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Unit 11 Controlling Sales Documents

Basic Principles of Business Process Control
Overview Sales Processes are controlled by Customizing for sales documents Customizing for sales documents can be done at header, item, or schedule line level. All depending on the structure of the document. o The instruments for control are: Sales Document Type Item Category Schedule line category We need to make settings in Customizing to ensure that the item category and schedule line category are determined automatically in the sales document. To fully set up a business process in our system, we need to configure the system for forwarding data from preceeding document to subsequent according to our business needs. This can be done via copying control.

Basic Functions

The sales document is not completely configured until we have processed all the necessary basic functions.

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Sales Document Types

Appendices
A Availability Check Taken from the book Sales and Distribution in SAP ERP Practical Guide

Figure Availability Check Settings in Material Master

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Figure Availability Check Control - ConFigureation Settings

Anytime we are creating a sales order and are using materials where we can run into a potential stock shortage situation, we are making SD requirements visible to procurement. This transfer of requirements can influence the availability check because our materials could potentially be provided by an internal production facility or external supplier. This could mean a seven-day delivery from the vendor.

Figure Requirements Transfer Mechanism

The other factors that have impacts on availability check results include loading time, transportation planning time (route stage duration), GR processing time, picking time and packing time, et cetera. Taking all this into account, the system must first carry out backward scheduling to establish the MAD. The formula for this is: Availability Date = Requested Delivery Date Transportation Processing Loading Time Picking and Packing Time

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On the determined date, an availability check using ATP logic is carried out, where: ATP qty = [Total WHSE stock Qty + Planned Goods Receipts Qtys(incoming stock)] Planned Issues Qtys (outgoing stock) To illustrate, lets imagine a scenario where a material is not being fully available. During order entry, the system proposes a new date for complete delivery, (which we dont accept) and selects a partial delivery of what was available on hand at that time. Two Schedule lines will now be created. To simulate the results we can use transaction CO09 Availability Overview

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