SALES ORDER MANAGEMENT

Customer

Material

Material type
Industry sector

Info
record

Condition

Condition
types

Output

Output
types

Pre sales activities: establishing and maintaining

customer relationships
Creating and tracking customer contacts
Mailing campaigns
Answering customer ques. received by email, fax etc
Inquiries
Quotations

Inquiry

Creating a transfer order includes copying data

from the delivery document to the transfer order
for processing within the warehouse. The
transfer order is essential for controlling the
movement of goods within the warehouse.
The transfer order is based on a simple principle:
where you are taking goods from and to, within
your warehouse. There is a source location and a
destination location for every transfer order.

Sales order processing:

Contains all info.(Inquiries and quotations
docs) to process the customers request
during sales order processing. Sales process
data from master records.
1 quotation can = multiple sales orders.
Multiple quotation can = 1 sales orders.

Quote

Picking:
You create transfer order for an outbound delivery
A transfer order is generated for a warehouse number. The
system copies the relevant data from the delivery.

Transfer of requirements:
Communication between SD and Procurement is carried out via requirements.
The material for the order can come from in-house production or external
procurement.
If there is insufficient material available, purchase orders can be made via
material planning.

Confirm
Pick
Quantity

Transfer Order
Pick Quantity

TO Transfer Request

(shipment docs)
Posting the goods issue GI (goods issue documents).

Creating outbound delivery:

You can create an outbound delivery in a shipping point for
orders that are due for delivery. The relevant data is copied
from the order to the outbound delivery.
1 Sales Order can = 1 or several outbound deliveries
Several Sales Orders can = 1 outbound delivery.
The orders must all have the same characteristics that are
essential for the shipping process:
Shipping point
Due date
Ship-to address

Can be required via customizing

Can be required via the material master record
The system can check other plants for a material
Backward scheduling is used to determine whether a material will be available
Document flow in the SAP system: docs in sales process
are linked to each other using the doc. flow.
This let you access the history and current status of
your sales process at any time
1.Standard order
2.Delivery
3.WMS transfer order
4.GI- goods issue
5.Invoice
6.Accounting document

4000

4000

Bank

Revenue

10000

Customer Receiv/
Reconciliation

Customer
Sub-Ledger

10000 10000

10000 10000

10000

Auto

Documents generated

Delivery/
Shipping

Availability check in the sales order:

Inventory/Stock

Packing:
When packing you can combine delivery items and pack
them in different shipping units.

A Sales document is created in a sales area.

10
It references from Inquiry + Quote
Sales documents structure: is grouped into 3 levels:
Shipping processing in SD begins when you create the
header
customer related data)
delivery document (Header and item)(copying information
items
data about the material / quantities ordered, $, conditions
from the sales order, such as the materials and quant). The
schedule lines delivery q. + dates. schedule line =1 item, expect for partial
deliv. doc. controls, supports and monitors numerous sub
deliveries => multiple schedule lines.
processes for shipping processing such as:
Backward scheduling:
(Optional) picking and confirming (transfer req. orders)
The customers requested delivery date is used to calculate the pick/pack time
(Optional) Packing
and the transportation lead time. The delivery must be created on the earliest
(Optional) Planning and monitoring of transport
of the two dates (selection date for the outbound delivery).
Incompletion log:
Each SD document contains data required for the documents and for further
processing.
The system determines which fields are displayed in the incompletion log when
the user does not fill them during sales order processing.
The incompletion log will be displayed:
Automatically when you save your entries.
Or by choosing edit-incompletion log
In customizing you can decide which fields should be part of the incompl. log
The incompl. log functions are available in the sales order and in the delivery.

Inventory
Change

Picking in shipping processing:

You can control an item in an outbound delivery so that
picking is required.
Picking is carried out by creating transfer requests with
which you trigger and survey warehouse movements.

Warehouse

Sales
Order

ORDER TO CASH PROCESS

Pre-sales activities -> Sales order processing -> Inventory sourcing -> Shipping-> Billing ->Payment receipt
and posting

MM
Doc

FI
Doc

MM
Doc

CO
Doc

1
Goods
Issue

GI - goods issue posting: effects

MM - Material doc: describe the g. movt. from
the MM (stock) point of view.
FI - Accounting doc: describes the goods movt.
from the FI point of view.
CO - Cost accounting document: serve various
cost analysis purposes

_ Account affected:
.Inventory/stock is credited
.Inventory change (cost of goods) is debited
. NON Banked, Revenue, Customer.
Q in Inventory Mgt and the Delivery req. in
material planning are updated.
Further documents for FI are created.
(document flow updated)
Billing due list is generated.
The status in all relevant sales doc is updated
Customer requirement deleted

Account Posting
1. Goods Issue : Credit Inventory, Debit Cost of goods sold (Inv. Change)
2. Billing a customer : Credit Revenue, Debit customer (Reconc+Subdledger)
3. incoming Payment: Credit Customer(Reconc+Subdledger), Debit bank account

Sales and distribution integration:

Integrates with Materials Management for availability checking
Integrates with Production Planning for make to order product
Integrate with Project Systems for delivery and billing processing
Integrate with Warehouse Management module, where the product is picked and print shipping document
Integrate with Materials Management, Financial Accounting and Controlling when posting a goods issue
Integrates with Profitability Analysis for sales order
Integrates with Sales Information System

FI
Doc

COPA
Doc

FI
Doc

Invoice
/ Billing

Receive
Payment

Billing:
Billing supports:
Creating invoices for products and services
Creating credit and debit memos
Cancelling previously posted billing documents
Automatically transferring billing document data to
accounting

Payment:
process part of the application module FI
Payment supports:
Posting payments against invoices
Reviewing differences

When you create a billing document, data is copied from the

sales order and the delivery docs to the billing document.
Functions:
It is SD document that helps you to generate invoices.
The billing document serves as a data source for FI to help
you monitor and process customer payments.
When you create a billing doc., the G/L accounts will
normally be updated automatically. During this process, the
system carries out:
o Customer Receivables account is debited (bis)
o Revenue account is credited (bis)

Incoming payment posting: effects

Cash/Bank account is debited
Customer Receivables account is
credited
Customer Subledger account is credited
We know that payment has been
received from the customer for a
particular invoice, because the overall
processing status of the accounting
documents changes to cleared.

Creating a billing document:

You can create an invoice for a delivery or sales order.
You can group invoices using selection criteria, such as
customer, billing date and destination country.
The SAP system can combine deliveries into a billing document,
provided these deliveries share some essential characteristics:
Payer Billing date
Destination country
Billing document structure: two levels:
Header (Payer, Billing date)
Item (Details about the material,Billing quant, items Net value)

Billing document posting: effects

Customer credit account is updated
Status in all related sales, delivery and billing documents, is updated
Sales statistics in the SIS are updated

_ Account affected:

Open item posted on

Customer Receivables account is debited
cust.s account
Customer Subledger account is debited
Revenue account is credited
Further documents for accounting can be automatically generated by
the system, for example:
For the components controlling (CO) accounting
Profitability analysis (CO-PA) posted
Market segment analysis (CO-PA)
Consolidation (FI-LC)