SAP UNIT 4 LOGISTIC Lesson 2 Sales Order Management

Your company, IDES is selling products to various customers. Timely handling and delivery of sales orders is key to their business success.

mySAP ERP provides superior insight into sales back office processes, including: inquiries, quotations, order generation, contract, and billing cycle management.

Sales Order

The sales order processing scenario describes the complete process, starting with pre-sales activities, moving to the creation of the sales order, continuing with the sales order fulfillment, and ending with the invoicing of the sales order and the parallel process of the creation of the posting in financial accounting.

mySAP ERP provides superior insight into sales back-office processes, including: inquiries, quotations, order generation, contract, and billing cycle management. Business benefit from a complete overview of the customer life cycle, including order status ,billing, payment, and credit management. In addition to the back office features, mySAP ERP also supports Internet sales, sales entered through mobile devices such as handhelds and basic call center functionality. 

Sales order management cycle:

1.    Sales order

2.    Availability ceheck

3.    Outbound delivery

4.    Transportation

5.    Picking

6.    Goods issue

7.    Billing

8.    Payment processing

Sales order creation and availability check

the sales order can adopt information from the pre sales documents (a quotation or an inquiry).

During the creation of the sales order, the avaibility of the material can be checked to confirm the customer’s requested delivery date.

Delivery and goods issue

a outbound delivery is the basis for a process when the goods are physically moved as well as for the posting of the goods issue.

Picking can be fulfilled through the use of the Warehouse Management system and transportation can be planned and carried out.

Billing

As the final step in the sales process, an invoice as issued which must also be reflected in accounting.

Sales order basic function :

·         Monitoring sales transaction

·         Checking for availaibity

·         Transferring requirements to MRP

·         Scheduling delivery

·         Calculating procong and taxes

·         Checking credit limits

·         Creating printed or electronically transmitted documents.

Delivery

Delivery is an important part of the logistic chain. The result is an efficient and lagerly automatic shipping process in which maual changes are necessary only under certain circumstances.

Shipping processing:

·         Taking into account general buseiness agreements with your customer

·         Recording special material requests

·         Defining shipping conditions in the sales order.Shipping function :

·         Deadline monitoring for reference documents due for shipment

·         Creating and processing outbound deliveries

·         Packing deliveries

·         Information support for transportation planning

·          Supporting foreign trade requirements

·         Printing and transmitting shipping documents

·         Processing goods issue

·         Deliveries currently in process

·         Activities that are still to be carried out

·         Identifying possible bottlenecks

Outbound delivery document

Outbound delivery document is the most commonly used document used to support delivery processed.

Shipping activities:

·         Including picking

·         Packing

·         Transportation

·         Good issue

Shipping plaining information

During the outbound delivery process, Shipping palnning information is recored, status of shipping activities is monitored and data accumulated during shipping processing is documented.

An outbound delivery can be created as follows:

·         With reference to a slaes order

·         With reference to a stock transport order

·         With reference to a subcontract order

·         With reference to a project

·         Without any reference.

Picking delivery

The picking process involves talking goods from a storage location and staging the goods in a picking area where the goods will be prepared for shipping.

Picking functions

System setting will allow picking to be carried out:

·         Automatically (during outbound delivery creation)

·         Routinely (at certain times)

·         Manually (via an employee request)

A picking status is recored in each delivery item for the purpose of scheduling and monitoring.

The Warehouse Management system (WM) is fully integrated in the Logistic Execution System (LES)

Goods issue posting function

The oubond delivery forms the basis of goods issues posting. The data requires for good issue posting is copied from the outbound delivery into the goods issue document, which cannot be changed manually.

Goods issues for an outbound delivery, the following functions are:

1.      Warehouse stock of the material is reduced by the delivery quantity

2.      Value changes are posted to the balance sheet account in inventory accounting

3.      Requirements are reduced by the delivery quantity

4.      The serial number status is updated

5.       Goods issue posting is automatically recorded in the document flow

6.      Stock determination is executed for the vendor’s consignment stock

7.      A worklist for the proof of delivery is generated

Post goods issues in the following ways:

·         Automatically (during outbound delivery creation)

·         Routinely (at certain times)

·         Manually (via an employee request)\

Billing

Billing represent the final processing stage for a business transaction in sales order processing. Information on billing is available at every stage of order processing and delivery processing.

Billing functions include:

·         Creation of invoices based on deliveries or services

·         Issues of credit and debit memos and pro forma invoices

·         Canceling billing transactions

·         Comprehensive pricing functions

·         Issue reabates

·         Transfer billing data to financial accounting

Billing is integrated into the organizational structure. Thus , you can assign the billing transactions a specific sales organization ,a distribution channel, and a division. Because billing has an interface to financial accounting, the organizational structures of the accounting department are important.

It is possible to create billing documents:

·         With reference to a sales order document

·         With reference to a delivery document

·         With reference to external transactions

Billing and financial accounting

The sytem automatically post the amounts to the appropriate accounts by means of account determination.

Cost and revenue can be posted to the following accounts:

·         Customer accounts receivable

·         General ledger

·         Revenue

·         Sales deductions

·         Accruals

·         Accrual account

·         Accrual clearing account

Document Flow

The sales documents you can create are individual documents, but they can also form part of a chain of interrelated documents.