Condition Records - saphelp.it · Condition Records Business Procedure Overview: ... In order to work with the SAP System NS company structure has ... by the customer during an order

Nissei Sangyo S01-Condition Records.doc – Business Procedure Overview

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04/19/06 S01-Condition Records.doc Page: 1

Condition Records

Business Procedure Overview: Condition Records are used to perform the day-to-day pricing activities during sales order processes. NS will be using condition records to store and retrieve pricing data in the system. All the pricing elements of NS daily business - the prices, discounts, and surcharges for freight and taxes - that NS wants to use for automatic pricing must be stored in the system as condition records. NS may define as many condition records as she wants for the different pricing elements for any validity period. The condition records created for all the pricing elements are taken into account during automatic pricing. During document processing, the system transfers data from the condition records and determines the amounts for individual pricing elements (prices, discounts and surcharges) and the final amount for the sales document.

When If a new pricing element arises or the need to amend an existing pricing element.

How Step 1: Capture Info Chris to advice on the various pricing elements required by NS.

Step 2: Create Condition Record Create condition record.

Responsibility Admin Section




Business Procedure Flow.

Start

Condition Records requiresupdate

Update Condition Record

End




Special Considerations

SAP Settings

See Also

Nissei Sangyo S02-Customer-Material Info Records.doc – Business Procedure Overview


04/19/06 S02-Customer-Material Info Records.doc Page: 1

Customer-Material Info Records

Business Procedure Overview:

What Every company is structured in a certain way. In order to work with the SAP System NS company structure has to be represented in the system. This is done with the help of various organizational structures. Products are sold or sent to business partners or a service are performed for them and data about the products and services as well as about the business partners is the basis for sales processing. Therefore, before sales processing begins, it requires that the master data has been stored in the system. If a customer manages a material with a number that differs from the one NS uses, a customer-material information record is created. The customer material information records stores all the data on a material defined for one specific customer. This data includes

• the customer-specific material number • the customer-specific material description • customer-specific data on deliveries and delivery tolerances

One of the main functions of this info record is that items can be entered by specifying the material number used by the customer during an order entry process. A customer-material info record is also essential for EDI processes.

When If a new customer-material info arises or the need to amend an existing customer-material info element.

How Step 1: Capture Info Chris to advice on how information is being derived from the customer – processes, documents etc.

Step 2: Create Customer-Material Info Records Create a customer-material information record.

Responsibility Sales Section Admin Section





Start

Customer-Material InfoRecord needs updating

Update Customer-MaterialInfo Record

End




Special Considerations Customers who maintain difference material numbers have to provide these data to NS.

SAP Settings • Rounding profile • Unit of measure

See Also • Material Master • Customer Master

Nissei Sangyo S03-Demand Forecast.doc – Business Procedure Overview


04/19/06 S03-Demand Forecast.doc Page: 1

Demand Forecast


What Demand forecasting is a tool to drive materials planning and purchasing. Based on future customer demand, the sales section enters the demand-forecast figures for each customer and material into the SAP system. Forecasting figures in the current month (month-n) is to fulfill future orders or confirmed orders next month (month n+1). The required demand in the current month to be transferred to Demand Management is total of confirmed sales order in the current month plus forecast figures in the current month, plus adjusted figures in the current month. After MRP run, purchase quantity is the required demand minus stock on hand minus open purchase order. This process is used for the department that keeps stocks in the warehouse (e.g. Semiconductor Dept).

When Sales section will enter the demand forecast beginning of the month.

How

Step 1: Demand Forecast Based on the future customer demand, sales section will do forecasting for six month ahead. Forecasting figures in month (n) is to fulfill future orders or confirmed orders in month (n+1), and the sales section may add adjusted forecast based on customer’s sales history.

Step 2: Review the Demand Forecast The purchasing section reviews the Demand Forecast and may change the adjusted forecast.

Step 3: Released for Material Planning Purchasing section approves and releases the Demand Forecast to Demand Management. The Demand Forecast is then used to generate the Purchase Requisitions after an MRP run.

Responsibility Sales section Purchasing section




Business Procedure Flow:

Special Considerations For each individual material, forecast figure in month (n) is calculated based on forecast factor (X) that is assigned to a material group multiplied by sales order in month (n+1). This forecast factor X is determined manually, it ranges from 0% to 100%. Adjusted quantity is determined based on customer’s history, therefore the sales section and purchasing section have to monitor the adjusted forecast quantity in order to maintain the accuracy of The Demand Forecast. The Demand Forecast only applies for Stock Order processing. For unplanned order (e.g. Direct Order and Stock Order with PO), individual PO will be created and dedicated for a particular sales order, and it would not be part of MRP processing. The following table is calculation table for The Demand Forecast.

Demand Forecast N n+1 n+2 n+3 n+4 n+5 Open Sales Order A1 A2 A3 A4 A5 A6 Forecast B1=X*A2 B2=X*A3 B3=X*A4 B4=X*A5 B6=X*A6 Adjusted Forecast C1 C2 C3 C4 C5 C6 Required Demand R1=A1+B1+C1 R2=A2+B2+C2 R3=A3+B3+C3 R4=A4+B4+C4 R5=A5+B5+C5 R6=A6+C6

MRP n n+1 n+2 n+3 n+4 n+5

Stock S1 S2=P1+S1-A1 S3=P2+S2-A2 S4=P3+S3-A3 S5=P4+S4-A4 S6=P5+S5-A5 PO P1=R1-S1 P2=R2-S2 P3=R3-S3 P4=R4-S4 P5=R5-S5 P6=R6-S6

Review the DemandForecast

Start

End

Demand Forecast

Released forMaterial Planning




SAP Settings A new info structure is to be created. Customer, material and plant are to be defined as characteristics, and open sales order, forecast, adjusted forecast and required demand are to be defined as key figures. • Maintain Self-Defined Information Structures. It is used for flexible planning. • Activate the new information structure for all sales transactions. • Set parameters for info structures and key figures. Planning type with macro will be used. • Maintain planning hierarchy.

See Also

Nissei Sangyo S04-Stock Order.doc – Business Procedure Overview


04/19/06 S04-Stock Order.doc Page: 1

Stock Order


What Stock Order process is a very straightforward process where NS receives a request from a customer and NS fulfills this order by delivering a defined quantity of products or provide a service at a certain defined time.

When The Stock Order process begins when customer raises an order for products that NS has in the stock.

How

Step 1: Customer ask for quotation If the customer did not request for a quotation then proceed to step 4, If a quotation is requested then proceed to step 2.

Step 2: Create quotation A quotation presents the customer with a legally binding offer for delivering a product or providing a service within certain fixed conditions. This offer is legally binding for the company within a specified time period. Sales section creates quotation in the system by entering all required information into SAP system. Quotation will be printed for checking and approval process.

Step 3: Approved Quotation Customer is satisfied with the quotation. Go to step 4.

Step 4: Customer raises an order A customer raises a Purchase Order to Nissei Sangyo.

Step 5: Check terms and conditions Sales section checks all information printed on customer’s original Purchase Order. If all terms and conditions are agreed, then proceed to apply for Exchange Booking when the foreign trade amount is S$10,000 and above or equivalent.

Step 6: Create sales order Sales section creates sales order in the system by entering all required information into SAP system. Sales order will be printed for checking and approval process. System will do a credit checking. If the credit limit is exceeded, a warning message will appear. Sales order will be printed for checking and approval process.

Step 7: Check and approve trade If the order amount is S$100,000 or less, or order reduction is S$30,000 or less, or loss amount is S$3,000 or less, approval can be obtained from Sales Manager or the designated Sales Personnel. Otherwise, all approval must be obtained from the Administration Section. Other level of approval is listed below:-

Contents Sales Manager

Admin Executive

Admin Assistant Manager

Admin Manager

Managing Director

Sales Order S$ 0 ~ S$ 100 000 Θ S$100 001 ~ S$ 1 000 000 O Θ S$1 000 001 ~ S$ 2 000 000 O O Θ S$2 000 001 ~ S$ 3 000 000 O O O Θ




S$3 000 001 ~ O O O O Θ Miteihin S$0 ~ S$ 200 000 O O O Θ S$ 200 001 ~ O O O O Θ Loss S$0 ~ S$ 3000 Θ S$3001 ~ S$ 5000 O O Θ S$5001 ~ S$ 10 000 O O O Θ S$10 001 ~ O O O O Θ Sales Reduction S$0 ~ S$ 30 000 Θ S$30 001 ~ S$ 50 000 O O Θ S$50 001 ~ S$ 100 000 O O O Θ S$100 001 ~ O O O O Θ

When Admin section receives all relevant documents from the sales section, Admin section it to check and confirm the sales order. If the order is rejected, all documents concerned are to return to the sales section.

Step 8: Create delivery document If the credit limit is exceeded, system will block delivery and post goods issue. Credit management has to be carried out by the authorized personnel before delivery and post goods issue can be done. When shipment is done, delivery note to customer will be generated referring to sales order. In the case of export sales, the Traffic Center will verify the LCs and shipment documents (ie. DO, packing list and export invoice) before approving the delivery. The system will also allow changes to some statistical data in the export sales documents (ie. material description etc.)

Step 9: Create billing document After the goods have been delivered, all necessary documents are to be submitted to Admin section for invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document referring to delivery document.






Customer raises an order

Check terms andconditions

End

Create Delivery DocumentCreate Delivery Document

Create Billing Document

Check and approvesales order

Create Sales OrderCreate Sales Order

Start

QuotationNeeded?

No

Create/Revise Quotation

Yes

QuotationApprove?

Yes

Need to revisequotation

No

Yes

No




Special Considerations If a customer manages a material with a number that differs from the one NS uses, a customer-material information record is created. During order entry, items can be entered by specifying the material number used by the customer. We also enter a customer material number in the order view of the sales order. We can then use both material numbers during the order entry, the material number NS uses or the one defined by the customer, because the system can carry out allocation automatically.

SAP Settings • Pricing:

• Basic price (PR00) will be mandatory • Output tax (MWST) will be mandatory • Commissions • Special Discount • Freight • Trade Cost • Mithei-Hin • Warranty • Service • Bank Charges • Insurance • Duties

• Revenue Account Determination • Availability Check and Transfer of Requirements • Output Control • Materials Determination • Partner Determination • Text Control • User Status • Log of Incomplete Items • Credit Management/Risk Management • Sales Document Header Doc Type Description Comments OR Standard Order • Sales Document Number Ranges Doc Type Number Ranges Comments OR ??? • Sales Copy Control • Delivery Document Doc Type Description Comments LF Standard Delivery • Delivery Document Number Ranges Doc Type Number Ranges Comments LF ??? • Delivery Copy Control • Billing Document




Doc Type Description Comments F2 Invoice • Billing Document Number Ranges Doc Type Number Ranges Comments F2 ??? • Billing Copy Control

See Also a) Stock Order with PO b) Contract Stock Order c) Returns Stock Order d) Consignment Fill-Up Stock Order e) Consignment Pick-up Stock Order f) Consignment Issue Stock Order g) Inter Company Stock Order h) Perform Credit Management

Nissei Sangyo S05-Stock Order with PO.doc – Business Procedure Overview


04/19/06 S05-Stock Order with PO.doc Page: 1

Stock Order with PO


What Stock Order with PO process is similar to Stock Order process where NS receives a request from a customer and NS fulfills this order by delivering a defined quantity of products or provides a service at a certain defined time. The difference is that NS does not have enough stock to cater for this order therefore there is a need to purchase it from vendor. Vendor will deliver it to NS and then NS will deliver to the customer.

When The Stock Order with PO process begins when customer raises an order for products with NS and NS does not have enough stock on hand for the particular order.

How Step 1: Customer ask for quotation If the customer did not request for a quotation then proceed to step 4, If a quotation is requested then proceed to step 2.

Step 2: Create quotation A quotation presents the customer with a legally binding offer for delivering a product or providing a service within certain fixed conditions. This offer is legally binding for the company within a specified time period. Sales section creates quotation in the system by entering all required information into SAP system. Quotation will be printed for checking and approval process.

Step 3: Approved Quotation Customer is satisfied with the quotation. Go to step 4. If customer is not happy with the quotation the customer may request for the quotation to be revised. Step 4: Customer raises an order A customer raises a Purchase Order to NS.


Step 6: Create sales order Sales section creates sales order in the system by entering all required information into SAP system. Sales order will be printed for checking and approval process. System will do a credit checking. If the credit limit is exceeded, system will prompt a message. Sales order will be printed for checking and approval process.


Contents Sales Admin Admin Admin Managing




Manager Executive Assistant Manager

Manager Director

Sales Order S$ 0 ~ S$ 100 000 Θ S$100 001 ~ S$ 1 000 000 O Θ S$1 000 001 ~ S$ 2 000 000 O O Θ S$2 000 001 ~ S$ 3 000 000 O O O Θ S$3 000 001 ~ O O O O Θ Miteihin S$0 ~ S$ 200 000 O O O Θ S$ 200 001 ~ O O O O Θ Loss S$0 ~ S$ 3000 Θ S$3001 ~ S$ 5000 O O Θ S$5001 ~ S$ 10 000 O O O Θ S$10 001 ~ O O O O Θ Sales Reduction S$0 ~ S$ 30 000 Θ S$30 001 ~ S$ 50 000 O O Θ S$50 001 ~ S$ 100 000 O O O Θ S$100 001 ~ O O O O Θ


Step 8: Initiate Purchase Requisition (PR) Once Admin section has generated the sales order, the system will automatically initiate a purchase requisition in the system. Step 9: Raise Purchase Order (PO) Once the approval is obtained, purchase order is to be created. For more information, refer to the Purchase Order Processing Business Procedure . All printed official purchase order and sales confirmation (if any) must be signed by Sales Manager or his designated person. Sales section is to type in case mark(s) onto the purchase order if required, or sales confirmation if required. Step 10:Goods Receipt (GR) NS performs a goods receipt process when vendor delivers goods to the customer. For more information, refer to the Goods Receipt Business Procedure . Step 11:Invoice Verification (IR) The sales administration posts the supplier invoice into the system. For more information, refer to the Invoice Verification Business Procedure .

Step 12: Create delivery document If the credit limit is exceeded, system will block delivery and post goods issue. Credit management has to be carried out by the authorized personnel before delivery and post goods issue can be done. When shipment is done, delivery note to customer will be generated referring to sales order. In the case of export sales, the Traffic Center will verify the LCs and shipment documents (ie. DO, packing list and export invoice) before approving the delivery. The system will also allow changes to some statistical data in the export sales documents (ie. material description etc.)




Step 13: Create billing document After the goods have been delivered, all necessary documents are to be submitted to Admin section for invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document referring to delivery document.






Customer raisesan order



Create BillingDocument End

Initiate PurchaseRequisition

CreatePurchase Order

Goods ReceiptGoods Receipt

Verify supplier invoice

CreateDelivery Document


Start

QuotationNeeded?

No


Yes

QuotationApprove?

Yes


No

Yes




Special Considerations In SAP, Stock Order with PO is called Individual Purchase Orders. During sales order entry, the system automatically creates a purchase requisition item. The purchasing department creates a purchase order based on the requisition and the supplier ships the goods directly to NS (unlike third party order processing, where the supplier ships directly to the customer). NS then ship the goods to the customer. While the goods are part of NS inventory, NS manage them as part of the sales order stock. Sales order stock consists of stock that is assigned to specific sales orders and cannot be used for other purposes.

SAP Settings • Item category TAB will assigned to item category group NORM. • For approval process, user status in the sales order will be configured to meet the requirement. • Settings in Customizing for billing document copying control at item level if we want the cost for the billing

document to be taken from the supplier invoice or purchase order, and not the valuation segment in the material master. The quantity indicator in the billing document’s document flow then controls where the cost comes from. • If we activate F in the Billing quantity field, the value is calculated from the incoming invoice and copied to

the VPRS condition. This assumes that the customer billing document can’t be created until the supplier invoice has been posted, checked by copying requirement 004.

• If we activate F in the Billing quantity field, the value is calculated from the incoming invoice and copied to the VPRS condition. Goods receipt for customer purchase orders is not normally valuated and the value from the purchase order is used as the cost.

• Other settings will be the same like stock order process.

See Also a) Stock Order b) Contract Stock Order c) Returns Stock Order d) Consignment Fill-Up Stock Order e) Consignment Pick-up Stock Order f) Consignment Issue Stock Order g) Inter Company Stock Order h) Perform Credit Management

Nissei Sangyo S06-Contract Stock Order.doc – Business Procedure Overview


04/19/06 S06-Contract Stock Order.doc Page: 1

Contract Stock Order


What Contract Stock Order is a process where NS fulfills the customer contracts, an outline customer agreement showing the sales materials or services that are to be sold within a certain time period.

When The Contract Stock Order process begins when NS and the customer agree upon an outline agreement for sale of products or services. There after, customer fulfills this contract by placing sales order to NS.

How Step 1: Customer raises outline agreement NS and the customer agree upon an outline agreement for sale of products and services. Step 2: Create Contracts Sales section creates sales contract in the system by entering all required information into SAP system. The type of Sales Contract available in the SAP system that will be used in NS business environment typically is

• Quantity Contracts A quantity contract is an agreement that NS’s customer will order a certain quantity of a product from NS during a specified period. The contract contains basic quantity and price information, but does not specify delivery dates or quantities.

Step 3: Customer raise order In the Contract Stock Order process, the customer fulfills the contract by placing sales order to NS.

Step 4: Check terms and conditions Sales section checks all information printed on customer’s original Sales Order. If all terms and conditions are agreed, then proceed to apply for Exchange Booking when the foreign trade amount is S$10,000 and above or equivalent.



Admin Executive


Admin Manager

Managing Director

Sales Order S$ 0 ~ S$ 100 000 Θ S$100 001 ~ S$ 1 000 000 O Θ S$1 000 001 ~ S$ 2 000 000 O O Θ S$2 000 001 ~ S$ 3 000 000 O O O Θ S$3 000 001 ~ O O O O Θ Miteihin S$0 ~ S$ 200 000 O O O Θ S$ 200 001 ~ O O O O Θ Loss S$0 ~ S$ 3000 Θ




S$3001 ~ S$ 5000 O O Θ S$5001 ~ S$ 10 000 O O O Θ S$10 001 ~ O O O O Θ Sales Reduction S$0 ~ S$ 30 000 Θ S$30 001 ~ S$ 50 000 O O Θ S$50 001 ~ S$ 100 000 O O O Θ S$100 001 ~ O O O O Θ


Step 6: Create sales order Once Admin section has approved and authorized the order, Admin section is to create a sales order, hereby referred to as release order in the SAP system for the particular sales contract. This is done in the SAP system by using the copy with reference function. The release order is created by copying the data from the sales contract created earlier on by the Sales section. System will do a credit checking. If the credit limit is exceeded, system will prompt a warning message. Sales order will be printed for checking and approval process.

Step 7: Create delivery document If the credit limit is exceeded, system will block delivery and post goods issue. Credit management has to be carried out by the authorized personnel before delivery and post goods issue can be done. When shipment is done, delivery note to customer will be generated referring to the release order. In the case of export sales, the Traffic Center will verify the LCs and shipment documents (ie. DO, packing list and export invoice) before approving the delivery. The system will also allow changes to some statistical data in the export sales documents (ie. material description etc.)

Step 8: Create billing document After the goods have been delivered, all necessary documents are to be submitted to Admin section for invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request and must be correct. When checking is completed, Admin creates billing document referring to the delivery document.






Customer raise outlineagreement

Check Terms & Conditions

Start

End

Check & Approve Trade

Create Delivery Document

Create Billing DocumentCreate Billing Document

Create Contract

Customer raise order

Create Sales Order




Special Considerations When we create a release order, we refer to the relevant contract, and the system automatically updates the released quantities in the contract. When we create a release order for a contract, we enter the number of the contract and the name of the partner who is requesting the goods. The system then checks if the business partner is authorized to release against the contract. We can define authorized sold-to parties (AA) and additional ship-to parties (AW) in the customer master record. When we create a contract for the customer, these partners are proposed for selection.

SAP Settings • If the partner has the partner function AG (sold-to party) or AA (sold-to party for release order) in the contract,

the system accepts the partner as the sold-to party for the release order. • If the contract contains a WE (ship-to party) and several AWs (ship-to party for release order), the system lists

the possible ship-to parties in a dialog box. We select the appropriate ship-to party for the release order. • We activate the partner authorization check in the Customizing activity ‘Define Sales Document Types’. • Partner determination procedure KAB (partners in contract) contains the partner functions AA and AW. We

must assign this procedure to the sales document types for which the partner authorization check is relevant. We make this assignment in the Customizing activity ‘Define and assign partner determination procedures’.

• In the standard R/3 System, the partner releasing against the contract and the ship-to party, which you select, are copied into the release order. If we want to control which partners are copied into the release order, we can define a copying routine for the relevant document types in the Customizing activity ‘Maintain Copying Control for Sales Documents’. For example, we can specify that only the sold-to party releasing against the contract is copied into the release order and the other partners are determined from the customer master record of the sold-to party.

• User status is to be configured to cater approval process in the sales order. • Contract Document Doc Type Description Comments QC Quantity Contract • Contract Document Number Ranges Doc Type Number Ranges Comments QC ???

See Also a) Stock Order b) Stock Order with PO c) Returns Stock Order d) Consignment Fill-Up Stock Order e) Consignment Pick-up Stock Order f) Consignment Issue Stock Order g) Inter Company Stock Order h) Perform Credit Management

Nissei Sangyo S07-Returns Stock Order.doc – Business Procedure Overview


04/19/06 S07-Returns Stock Order.doc Page: 1

Returns Stock Order


What When customers who purchases through stock order, returns the goods, a Returns Stock Order process is activated once the returned goods are checked and the return approved.

When The returns stock order process begins when customer returns the goods.

How Step 1: Customer returns goods Customer returns goods to NS.

Step 2: Approve Returns When customer does a return based on a complaint, NS:

• Post the goods back to warehouse for checking • And then, implement one of the following activities:

• Approve the return and carry on with subsequent process of issuing a credit memo with reference to the return

• Approve the return, and implement a free of charge subsequent delivery based on the return • Reject the return

Step 3: Create sales order Sales section creates return sales order in the system by entering all required information into SAP system. System will do credit checking. If the credit limit is exceeded the maximum limit allowed, system will block the sales order for further transaction. Sales order will be printed for checking and approval process.

Step 4: Create delivery document A delivery (returns delivery – post goods receipt) with reference to the return is created. The goods issue posted for the return delivery matches the goods receipt to your own stock.

Step 5: Create billing document After the goods have been receipt, all necessary documents are to be submitted to Admin section for invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document – credit memo referring to sales order.






Customer returns goods toNS

Check and Approve Return

Start

End







Special Considerations We enter a return in the system if the customer returns damaged goods, or goods that had been delivered for sale on approval. The return causes the system to: • Register the receipt of goods using a returns delivery, and post the goods to stock (for example, blocked

stock). • Create a credit memo, once we have checked the goods and approved the complaint.

SAP Settings • Copying control for sales document, delivery document, and billing document. • Sales Document Header Doc Type Description Comments RE Returns • Number Ranges Doc Type Number Ranges Comments RE ???

See Also a) Stock Order b) Stock Order with PO c) Contract Stock Order d) Consignment Fill-Up Stock Order e) Consignment Pick-up Stock Order f) Consignment Issue Stock Order g) Inter Company Stock Order

Nissei Sangyo S08-Consignment Fill-up Stock Order.doc – Business Procedure Overview


04/19/06 S08-Consignment Fill-up Stock Order.doc Page: 1

Consignment Fill-up Stock Order


What Consignment Fill-up Stock Order is a process used to supplement the customer’s consignment stock where goods are being delivered by NS to the customer’s location and these goods are stored at the customer location but which are owned by NS. The customer is not obliged to pay for these goods until they remove them from consignment stock. Otherwise, the customer can usually return consignment good which are not required. Consignment processing offers the participating partners several advantages. Customers store the consignment goods at their own warehouses. The customer can access the goods in the consignment warehouse at any time. They are only billed for the goods when they are removed from the warehouse and only for the actual quantity taken. Consignment stock in this process is :-

• Managed separately from the rest of the stock to allow easier tracking of stock stored at the customer location

• Managed separately for each customer

When The Consignment Fill-Up Stock Order with Cost process begins when NS and the customer agree upon an outline agreement for consignment of products or services. There after, this process is used when there is a need to supplement the customer’s consignment stock.

How Step 1: Customer raises outline agreement NS and the customer agree upon an outline agreement for consignment of products and services. When the need arises to supplement the customer’s consignment stock.

Step 2: Create sales order Sales section creates consignment fill-up stock order sales order in the system by entering all required information into SAP system. System will do a credit checking. If the credit limit is exceeded, a warning message will appear. Sales order will be printed for checking and approval process.

Step 3: Check and approve trade If the fill-up order amount is S$100,000 or less, or order reduction is S$30,000 or less, or loss amount is S$3,000 or less, approval can be obtained from Sales Manager or the designated Sales Personnel. Otherwise, all approval must be obtained from the Administration Section. Other level of approval is listed below:-


Admin Executive


Admin Manager

Managing Director

Sales Order S$ 0 ~ S$ 100 000 Θ S$100 001 ~ S$ 1 000 000 O Θ S$1 000 001 ~ S$ 2 000 000 O O Θ S$2 000 001 ~ S$ 3 000 000 O O O Θ S$3 000 001 ~ O O O O Θ Miteihin S$0 ~ S$ 200 000 O O O Θ S$ 200 001 ~ O O O O Θ




Loss S$0 ~ S$ 3000 Θ S$3001 ~ S$ 5000 O O Θ S$5001 ~ S$ 10 000 O O O Θ S$10 001 ~ O O O O Θ Sales Reduction S$0 ~ S$ 30 000 Θ S$30 001 ~ S$ 50 000 O O Θ S$50 001 ~ S$ 100 000 O O O Θ S$100 001 ~ O O O O Θ

When Admin section receives all relevant documents from the sales section, Admin section it to check and confirm the fill-up sales order. If the fill-up order is rejected, all documents concerned are to return to the sales section.

Step 4: Create delivery document If the credit limit is exceeded, system will block delivery and post goods issue. Credit management has to be carried out by the authorized personnel before delivery and post goods issue can be done. When shipment is done through air or sea, the airway bill number or the bill of lading number will be used to serve as the delivery note to customer. When shipment is done through land, delivery note to customer will be generated referring to the fill-up sales order. When delivery note to customer is needed it will be generated referring to the fill-up sales order. In the case of export sales, the Traffic Center will verify the LCs and shipment documents (ie. DO, packing list and export invoice) before approving the delivery. The system will also allow changes to some statistical data in the export sales documents (ie. material description etc.) The underlying goods movement type is a stock transfer. This ensures that when goods issue is posted, consignment special stock is created for the customer concerned. If special stock of this kind already exists in the delivering plant for this customer, the goods are posted to this special stock.






Customer raises outlineagreement

Start


End





Special Considerations Goods issue of the appropriate stock is posted from the unrestricted-use stock to consignment stock (special stock). When we ship consignment stock to the customer, we record the transaction by creating a consignment fill-up order (order type KB). As a result, the system carries out the following actions: • If special stock does not yet exist in our inventory for the customer (or special stock partner), the system

creates it when goods issue is posted. • The relevant quantity is removed from regular inventory in our plant and is added to the special stock for the

customer. The total valuated stock for the plant remains the same. • The transaction is not relevant for pricing since the consignment stock remains the property of our company.

SAP Settings Inventory Management Using the Special Stock Partner If we want to process our consignment goods using a special stock partner, proceed as follows:

1. Create a customer master record for the special stock partner (account groups 0001 and DEBI are defined for this purpose in the standard system).

2. Enter the special stock partner in the relevant customer master record on the partner screen using the partner function SB.

When we create an order for this customer, the system automatically proposes the partner function SB in the document header and the document items. Consignment goods, which have been entered in a consignment fill-up, are always posted to the stock of the special stock partner when goods issue is carried out. We can also enter the partner function SB manually in the document header or in the relevant items if a special stock partner is required and is not proposed from the customer master record. If a special stock partner does not exist in the document header, inventory management is carried out using the sold-to party. • Sales Document Header Doc Type Description Comments KB Consignment Fill-Up • Number Ranges Doc Type Number Ranges Comments KB ??? • Other settings will be the same like stock order processing.

See Also a) Stock Order b) Stock Order with PO c) Contract Stock Order d) Returns Stock Order e) Consignment Pick-up Stock Order f) Consignment Issue Stock Order g) Inter Company Stock Order h) Perform Credit Management

Nissei Sangyo S09-Consignment Pick-Up Stock Order.doc – Business Procedure Overview


04/19/06 S09-Consignment Pick-Up Stock Order.doc Page: 1

Consignment Pick-Up Stock Order


What Any consignment stock order goods stored at the customer’s warehouse that haven’t been used can be re-posted to NS company’s warehouse with a consignment stock order pick-up. If the customer returns consignment stock order stock to NS, NS records the transaction in the system by creating a consignment stock order pick-up sales order . As a result, the system carries out the following actions:

• When goods issue is posted, the relevant quantity is deducted from the customer’s special stock and is added back into NS regular stock at the plant where the goods are returned. NS total valuated stock remains the same since the returned stock was regarded as part of NS own inventory even while it was at the customer’s premises.

• This transaction is not relevant for billing.

When The Consignment Pick-Up Stock Order process begins when the customer returns consignment stock order stock to NS.

How Step 1: Customer returns goods Customer returns consignment stock to NS.

Step 2: Create Sales Order Sales section creates consignment pick-up stock order sales order in the system by entering all required information into SAP system.

Step 3: Create Delivery Document Create a delivery document as the subsequent document for this consignment pick-up stock order sale order and, post goods receipt. The good issue posting which initiates a transfer posting from the customer’s special stock to NS plant stock completes the transaction.






Customer returns goods

Start


End





Special Considerations Any consignment goods stored at the customer’s warehouse that haven’t been used can be re-posted to our company’s warehouse with a consignment pick-up. If the customer returns consignment stock to NS, NS record the transaction in the system by creating a consignment pick-up order (order type KA). As a result, the system carries out the following actions: • When goods issue is posted, the relevant quantity is deducted from the customer’s special stock and is added

back into our regular stock at the plant where the goods are returned. Our total valuated stock remains the same since the returned stock was regarded as part of our own inventory even while it was at the customer’s premises.


SAP Settings • Sales Document Header Doc Type Description Comments KA Consignment Pick-Up • Number Ranges Doc Type Number Ranges Comments KA ??? • Other settings will be the same like stock order processing.

See Also a) Stock Order b) Stock Order with PO c) Contract Stock Order d) Returns Stock Order e) Consignment Fill-Up Stock Order f) Consignment Issue Stock Order g) Inter Company Stock Order

Nissei Sangyo S10-Consignment Issue Stock Order.doc – Business Procedure Overview


04/19/06 S10-Consignment Issue Stock Order.doc Page: 1

Consignment Issue Stock Order


What Consignment Issue is a subsequent transaction for processing consignment stock in the SAP system and the same applies in the case of NS business environment for Consignment Stock Order process, when the customer uses the consigned goods. Consignment issue enables the customer to take consignment goods from the special stock for their use. Consignment issue involves removing the goods from the special stock and making it the property of the customer. When the customer removes consignment stock to use, this transaction will be recorded in the system by creating a consignment issue order. As a result, the system carries out the following actions:

• When goods issue is posted, the relevant quantity is deducted from both the customer’s special stock and NS own total valuated stock.

• The transaction is relevant for pricing since the goods now become the property of the customer.

When The Consignment Issue Stock Order process begins when the customer removes consignment stock to use.

How Step 1: Customer raises Purchase Order (PO) Customer raises a PO to NS when the customer removes consignment stock to use.

Step 2: Create Sales Order Sales section creates consignment issue stock order sales order in the system by entering all required information into SAP system.

Step 3: Create Delivery Document Create a delivery as the subsequent document for this consignment issue sales order and, after picking has been completed successfully, post goods issue. The goods are then reduced by the relevant quantity in the special stock assigned to the customer. This goods issue also reduces the total stock in NS. Note that, in this step it is optional for NS to print out the delivery document. This document is for internal usage only.

Step 4: Create Billing This transaction is relevant for pricing since the goods now become the property of the customer. Invoice the delivery document issuing the consignment goods. This invoice will then be attached together with the delivery document generated from the consignment fill-up process and send to the customer.






Customer raise PO to NS

Start


End


Create Invoice

Check andApprove Sales Order




Special Considerations When the customer removes consignment stock to use or sell, we record the transaction in the system by creating a consignment issue order (order type KE). As a result, the system carries out the following actions:

• When goods issue is posted, the relevant quantity is deducted from both the customer’s special stock and our own total valuated stock.


SAP Settings • Sales Document Header Doc Type Description Comments KE Consignment Issue • Number Ranges Doc Type Number Ranges Comments KE ??? • Other settings are the same like stock order processing.

See Also a) Stock Order b) Stock Order with PO c) Contract Stock Order d) Returns Stock Order e) Consignment Fill-Up Stock Order f) Consignment Pick-up Stock Order g) Inter Company Stock Order

Nissei Sangyo Sale of Machine/Scientific Instrument – Business Procedure Overview


04/19/06 S11-Sales of Machine.doc Page: 1

Sale of Machine/Scientific Instrument


What Prior to this process, a Consignment Fill-up is done (please refer to the Consignment Fill-up Stock Order BPP). Subsequently, the customer uses this machine but the machine will still remain the property of NS. NS gives the customer a trial period of six months to use this piece of machine. Before this six months period is up the customer may return the machine through a consignment pick-up process (please refer to the Consignment Pick-up Stock Order BPP). When the trial period is up, the machine will be considered sold to the customer. Once the machine is sold to the customer, NS will do a consignment pick-up process (please refer to the Consignment Pick-up Stock Order BPP) and then followed by a Stock Order process (please refer to the Stock Order BPP).

When The Consignment Issue for Machine process begins when the customer requests to purchase a piece of machine.

How Step 1: Consignment Fill-up Process (Please refer to the Consignment Fill-up Stock Order BPP)

Step 2: Consignment Pick-up Process (Please refer to the Consignment Pick-up Stock Order BPP)

Step 3: Stock Order Process (Please refer to the Stock Order BPP)






Please refer to the respective Business Procedure Flow for a) Consignment Fill-Up Stock Order b) Consignment Pick-Up Stock Order c) Debit/Credit Memo Processing d) Stock Order





SAP Settings

See Also e) Consignment Fill-Up Stock Order f) Consignment Pick-Up Stock Order g) Debit/Credit Memo Processing h) Stock Order

Nissei Sangyo S12-Inter Company Stock Order.doc – Business Procedure Overview


04/19/06 S12-Inter Company Stock Order.doc Page: 1

Inter Company Stock Order


What Inter company business processing describes business transactions which take place between two companies (company codes) belonging to one organization. In the case of Inter Company Stock Order, it is the transfer of stock from one plant to another where the plants belong to different company codes (example, NSS orders from NSM). Basically, a purchasing organization, which is assigned to the ordering company code, creates a purchase order ordering goods from a plant assigned to another company code. The plant in the delivering company code delivers the goods to the plant for which the purchasing organization ordered the goods. In SAP, the former will be referred to as delivering plant and the latter as ordering plant. Since the plants belong to different company codes, the procedure for delivering on the basis of a purchase order from another plant should be similar to delivering on the basis of a sales order from a customer and for the billing procedure, because the two companies balance their accounts independently, the delivering company must bill the ordering company for the goods. This internal billing transaction is carried out by means of an inter company billing document. The delivering company bills the ordering company at a price that allows the delivering company to cover its costs.

When When one plant needs goods that belong to another plant belonging to a different company code.


Step 2: Create quotation Sales section creates quotation in the system by entering all required information into SAP system. Quotation will be printed for checking and approval process.


Ordering Plant Customer

Delivering Plant

2) PO

1) Sales Order8) Delivery9) Invoice

3) Sales Order4) Delivery5) Invoice

6) GR7) Invoice Verification





Step 6: Create sales order Sales section creates sales order in the system by entering all required information into SAP system. Sales order will be printed for checking and approval process. System will do a credit checking. If the credit limit is exceeded, system will prompt a warning message. Sales order will be printed for checking and approval process. In SAP, the plant doing this will be referred to as the ordering plant.



Admin Executive


Admin Manager

Managing Director



Step 8: Initiate Purchase Requisition (PR) Once Admin section has generated the sales order, the system will automatically initiate a purchase requisition in the system. Step 9: Raise Purchase Order (PO) Once the approval is obtained, purchase order is to be created. For more information, refer to the Purchase Order Processing Business Procedure . All printed official purchase order and sales confirmation (if any) must be signed by Sales Manager or his designated person. Sales section is to type in case mark(s) onto the purchase order if required, or sales confirmation if required.




Step 10: Create sales order Delivering plant sales section creates sales order in the system by entering all required information into SAP system. Sales order will be printed for checking and approval process. System will do a credit checking. If the credit limit is exceeded, system will block the sales order for further transaction. Sales order will be printed for checking and approval process.

Step 11: Create delivery document When the sales order has been created and saved, the delivering plant will deliver the goods to the ordering plant. Step 12: Post Goods Receipt (GR) The ordering plant posts goods receipt. For more info on goods receipt, refer to Goods Receipt Business Procedure. Step 13: Create billing document Delivering plant bills ordering plant for the delivery done. Step 14: Invoice Verification (IR) The sales administration posts the supplier invoice into the system. For more information, refer to the Invoice Verification Business Procedure .

Step 15: Create delivery document If the credit limit is exceeded, system will block delivery and post goods issue. Credit management has to be carried out by the authorized personnel before delivery and post goods issue can be done. When the sales order has been created and saved, the ordering plant will deliver the goods to the customer.

Step 16: Create billing document After the ordering plant has delivered the goods, all necessary documents are to be submitted to Admin section for invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document to customer referring to delivery document.











Raise Purchase Order

Start

QuotationNeeded?

No


Yes

QuotationApprove?

Yes


No

Yes

End

No



Create Billing DocumentInvoice Verification


End


Post Goods Receipt

Ordering Plant

Delivering Plant




Special Considerations If it is more than three parties get involved in this process, a normal sales and purchasing transaction will be carried out. It means sales order and purchase order will not be linked, and sales order in another company has to be created manually, unless IDoc is to be used to initiate sales order.

SAP Settings • Define Order Type For Intercompany Billing Interco Billing Type

Description Comments

IV Inter-company billing This document type is used for inter-company stock transport order billing.

IG Internal credit memo This document type is used to pass an internal credit note between two NEL affiliate companies.

• Number ranges Interco Billing Type

Number ranges Comments

IV

IG

See Also a) Stock Order b) Stock Order with PO c) Contract Stock Order d) Returns Stock Order e) Consignment Fill-Up Stock Order f) Consignment Pick-up Stock Order g) Consignment Issue Stock Order h) Inter Company Stock Order i) Perform Credit Management

Nissei Sangyo S13-Direct Order.doc – Business Procedure Overview


04/19/06 S13-Direct Order.doc Page: 1

Direct Order


What In direct order processing, NS does not deliver the items requested by a customer. Instead, NS pass the order along to a third-party supplier who then ships the goods directly to the customer and bills NS. NS bills the customer only after supplier invoice is accepted. Delivery document is required if the goods are delivered through land, otherwise airway bill number or the bill of lading number can be used as delivery document.

When The direct order process begins when customer raises an order for products are not kept in the stock or not enough stock in the warehouse.



Step 3: Approved Quotation Customer is satisfied with the quotation. Go to step 4. If customer is not happy with the quotation the customer may request for the quotation to be revised. Step 4: Customer raises an order A customer raises a Purchase Order to Nissei Sangyo.


Step 6: Create sales order Sales section creates sales order in the system by entering all required information into SAP system. System will do credit checking. If the credit limit is exceeded the maximum limit allowed, system will block the sales order for further transaction. Purchase requisition is created automatically after sales order is saved. Sales order will be printed for checking and approval process.

Step 7: Check and approve sales order If the order amount is S$100,000 or less, or order reduction is S$30,000 or less, or loss amount is S$3,000 or less, approval can be obtained from Sales Manager or the designated Sales Personnel. Otherwise, all approval must be obtained from the Administration Section. When Admin section receives all relevant documents from the sales section, Admin section it to check and confirm the sales order. If the order is rejected, all documents concerned are to return to the sales section.

Step 8: Create purchase order Once the approval is obtained, purchase order is to be created. For more information, refer to the Purchase Order Processing Business Procedure .




All printed official purchase order and sales confirmation (if any) must be signed by Sales Manager or his designated person. Sales section is to type in case mark(s) onto the purchase order if required, or sales confirmation if required.

Step 9: Send purchase order and sales confirmation There are three copies of purchase order (A1, A2, A3) and sales confirmation (B1, B2, B3) (if any). Two copies (A1 and A2) are sent to the supplier and one copy (A3) is filed in the sales section, and two copies (B1 and B2) of sales confirmation are sent to the customer and one is filed in the sales section. The supplier will sign one copy of purchase order (A2) and the customer will sign one copy of sales confirmation (B2). Sales section checks the signed documents to ensure all terms and conditions are in order. Both documents will be returned to sales section for filling. Step 10: Post Goods Receipt When the customer has acknowledged receipt of the goods from the vendor, Sales dept will perform a goods receipt. In this post goods receipt case, no accounting entry would be generated. If needed, a delivery note can be generated when delivery is done through land. Step 11: Create Export Invoice If it is an oversea shipment, an export invoice is being generated and printed.

Step 12: Verify supplier invoice The sales administration posts the supplier invoice into the system. For more information, refer to the Invoice Verification Business Procedure .

Step 13: Create billing document After the goods have been delivered, all necessary documents are to be submitted to Admin section for invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. These attached documents include supplier invoice and delivery documents. When checking is completed, Admin creates billing document referring to the sales order.







Check terms and conditions

Check and approve salesorder

Send purchase order andsales confirmation

Create Sales Order

Create purchase order

Create Export Invoice

Start

QuotationNeeded?


QuotationApprove?


Post Goods Receipt


End

Create billing document

Need ExportInvoice?

No

Yes

No

No

Yes

YesNo

Yes







Special Considerations The processing of direct orders is controlled via material types. Material types define whether a material is sold from stock, or can be ordered only from third-party suppliers, or whether both are possible. For example, a material that is defined as a trading good can only be ordered from a third-party supplier. Only after the supplier invoice is received, billing to customer can be done. System will copy order quantity in the supplier invoice and sales price in the sales order into billing document.

SAP Settings In SAP, Direct Order processing is called Third Party Order Processing. • Automatic third-party order processing If a material is always delivered from one or more third-party suppliers, we can specify in the material master that the material is a third-party item. During subsequent sales order processing, the system automatically determines the appropriate item category for a third-party item: TAS. To specify a material as a third-party item, enter BANS in the Item category group field in the Sales 2 screen of the material master record. • Manual third-party order processing In the case of a material that we normally deliver ourselves but occasionally need to order from a third-party vendor, we can overwrite the item category during sales order processing. For a material that we normally deliver ourselves, we specify the item category group NORM in the material master. • Billing Third-Party Orders If relevance for billing indicator for the item category has been set to B (relevant for order-related billing on the basis of the order quantity) in Customizing, the system includes the order in the billing due list immediately. If, however, the indicator has been set to F (relevant to order-related billing on the basis of the invoice quantity), the system does not include the order in the billing due list until an invoice from the vendor has been received and processed by the purchasing department. In the standard system, item category TAS (third-party order processing) has been given billing-relevance indicator F.

See Also Contract Direct Order Scheduling agreement Direct Order Returns Direct Order Intercompany Direct Order Consignment fill-up Direct Order with cost Consignment fill-up Direct Order without cost Consignment pick-up Direct Order with cost Consignment pick-up Direct Order without cost Consignment issue Direct Order with cost Consignment issue Direct Order without cost Consignment returns Direct Order Returns intercompany Direct Order (Returns to selling company) Returns intercompany Direct Order (Returns to ordering company)

Nissei Sangyo S14-Contract Direct Order.doc – Business Procedure Overview


04/19/06 S14-Contract Direct Order.doc Page: 1

Contract Direct Order


What Contract Direct Order process is similar to Contract Stock Order process where NS fulfills the customer contracts, an outline customer agreement showing the sales materials or services that are to be sold within a certain time period. The difference is that vendor delivers the goods or service directly to the customer.

When The Contract Direct Order process begins when NS and the customer agree upon an outline agreement for sale of products or services. There after, customer fulfills this contract by placing sales order to NS for products that are not kept in the stock or not enough stock in the warehouse.

How Step 1: Customer raises outline agreement NS and the customer agree upon an outline agreement for sale of products and services. Step 2: Create Contracts Sales section creates sales contract in the system by entering all required information into SAP system. The type of Sales Contract available in the SAP system that will be used in NS business environment typically is

• Quantity Contracts A quantity contract is an agreement that NS’s customer will order a certain quantity of a product from NS during a specified period. The contract contains basic quantity and price information, but does not specify delivery dates or quantities.

Step 3: Customer raises an order In the Contract Stock Order process, the customer fulfills the contract by placing sales order to NS.


Step 5: Create sales order Sales section creates sales order in the system by entering all required information into SAP system. System will do a credit checking. If the credit limit is exceeded, system will block the sales order for further transaction. Sales order will be printed for checking and approval process.



Admin Executive


Admin Manager

Managing Director

Sales Order S$ 0 ~ S$ 100 000 Θ S$100 001 ~ S$ 1 000 000 O Θ S$1 000 001 ~ S$ 2 000 000 O O Θ S$2 000 001 ~ S$ 3 000 000 O O O Θ S$3 000 001 ~ O O O O Θ




Miteihin S$0 ~ S$ 200 000 O O O Θ S$ 200 001 ~ O O O O Θ Loss S$0 ~ S$ 3000 Θ S$3001 ~ S$ 5000 O O Θ S$5001 ~ S$ 10 000 O O O Θ S$10 001 ~ O O O O Θ Sales Reduction S$0 ~ S$ 30 000 Θ S$30 001 ~ S$ 50 000 O O Θ S$50 001 ~ S$ 100 000 O O O Θ S$100 001 ~ O O O O Θ


Step 7: Initiate Purchase Requisition (PR) Once Admin section has generated the sales order, the system will automatically initiate a purchase requisition in the system. Step 8: Raise Purchase Order (PO) Once the approval is obtained, purchase order is to be created. For more information, refer to the Purchase Order Processing Business Procedure . All printed official purchase order and sales confirmation (if any) must be signed by Sales Manager or his designated person. Sales section is to type in case mark(s) onto the purchase order if required, or sales confirmation if required. Step 9: Post Goods Receipt When the customer has acknowledged receipt of the goods from the vendor, Sales dept will perform a goods receipt. In this post goods receipt case, no accounting entry would be generated. If needed, a delivery note can be generated when delivery is done through land. Step 10: Create Export Invoice If it is an oversea shipment, an export invoice is being generated and printed. Step 11: Invoice Verification (IR) The sales administration posts the supplier invoice into the system. For more information, refer to the Invoice Verification Business Procedure .

Step 12: Create billing document After the goods have been delivered, all necessary documents are to be submitted to Admin section for invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document referring to sales order.






Customer raisesan order


Start





Customer raise outlineagreement

Create Contract

Create Export Invoice

Post Goods Receipt


End

Create billing document

Need ExportInvoice?

Yes

No




Special Considerations This contract is an agreement that the customer will order a certain quantity of a product and the customer fulfills a contract by placing sales orders against it. Based on these sales orders, purchase orders will be raised to the supplier and the supplier will deliver directly to the customer.

SAP Settings It is a combination of contract stock order and direct order processing, therefore all configuration for both processes will apply to this particular scenario.

See Also a) Direct Order b) Scheduling agreement Direct Order c) Returns Direct Order d) Intercompany Direct Order e) Consignment fill-up Direct Order with cost f) Consignment fill-up Direct Order without cost g) Consignment pick-up Direct Order with cost h) Consignment pick-up Direct Order without cost i) Consignment issue Direct Order with cost j) Consignment issue Direct Order without cost k) Consignment returns Direct Order l) Returns intercompany Direct Order (Returns to selling company) m) Returns intercompany Direct Order (Returns to ordering company)

Nissei Sangyo S15-Returns Direct Order.doc – Business Procedure Overview


04/19/06 S15-Returns Direct Order.doc Page: 1

Returns Direct Order


What When customers who purchases through direct order, returns the goods, a Returns Direct Order process is activated once the returned goods are checked and the return approved. There are two scenarios for a Returns Direct Order process, customer returns to NS and NS returns to vendor OR customer returns to vendor.

When The returns direct order process begins when customer returns the goods.

How A. Goods returned to NS Step 1: Customer returns goods to NS Customer returns goods to NS.

Step 2: Approve Returns When customer does a return based on a complaint, NS:


• Approve the return and carry on with subsequent process of issuing a credit memo with reference to the return

• Approve the return, and implement a free of charge subsequent delivery based on the return • Reject the return

Step 3: Create sales order Sales section creates return sales order in the system by entering all required information into SAP system. System will do credit checking. If the credit limit is exceeded the maximum limit allowed, system will block the sales order for further transaction. Sales order will be printed for checking and approval process.


Step 5: Create billing document After the goods have been receipt, all necessary documents are to be submitted to Admin section for invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document – credit memo referring to sales order. Step 6: Return to vendor NS returns goods to vendor. For more information, refer to the Return to Vendor Business Procedure . B. Goods returned to Vendor Step 1: Customer returns goods to Vendor Customer returns goods to vendor.

Step 2: Customer Informs NS When customer does a return based on a complaint to vendor, customer will update NS of the return.




Step 3: Create credit memo request Sales section creates credit memo request in the system by entering all required information into SAP system. System will do credit checking. If the credit limit is exceeded the maximum limit allowed, system will block the sales order for further transaction. Sales order will be printed for checking and approval process.

Step 4: Create billing document Once the credit memo request has been created, all necessary documents are to be submitted to Admin section for invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document – credit memo referring to credit memo request. Step 5: Issue credit note Vendor issues credit note to NS. Sales Administration posts the credit note into the system.






A. Goods Returned to NS

Customer returns goods toNS

Check and Approve Return

Start

End




B. Goods Returned to Vendor

Customer returns goods tovendor

Customer informs NS

Start

End


Create Credit MemoRequest

Return to Vendor

Issue credit note







See Also a) Direct Order b) Contract Direct Order c) Scheduling agreement Direct Order d) Intercompany Direct Order e) Consignment fill-up Direct Order with cost f) Consignment fill-up Direct Order without cost g) Consignment pick-up Direct Order with cost h) Consignment pick-up Direct Order without cost i) Consignment issue Direct Order with cost j) Consignment issue Direct Order without cost k) Consignment returns Direct Order l) Returns intercompany Direct Order (Returns to selling company) m) Returns intercompany Direct Order (Returns to ordering company)

Nissei Sangyo S16-Consignment Fill-up Direct Order with cost.doc – Business Procedure Overview


04/19/06 S16-Consignment Fill-up Direct Order with cost.doc Page: 1

Consignment Fill-up Direct Order with Cost


What Consignment Fill-up Direct Order with cost is a process used to supplement the customer’s consignment stock where goods are being delivered by vendor to the customer’s location and these goods are stored at the customer location but which are owned by NS. The customer is not obliged to pay for these goods until they remove them from consignment stock. Otherwise, the customer can usually return consignment good which are not required. Consignment processing offers the participating partners several advantages. Customers store the consignment goods at their own warehouses. The customer can access the goods in the consignment warehouse at any time. They are only billed for the goods when they are removed from the warehouse and only for the actual quantity taken. Consignment stock in this process is :-

• Managed separately from the rest of the stock to allow easier tracking of stock stored at the customer location


When The Consignment Fill-up Direct Order with Cost process begins when NS and the customer agree upon an outline agreement for consignment of products or services. There after, this process is used when there is a need to supplement the customer’s consignment stock.


Step 2: Create sales order Sales section creates consignment fill-up direct order with cost sales order in the system by entering all required information into SAP system. System will do a credit checking. If the credit limit is exceeded, system will block the sales order for further transaction. Sales order will be printed for checking and approval process.



Admin Executive


Admin Manager

Managing Director







Step 4: Initiate Purchase Requisition (PR) Once Admin section has generated the fill-up sales order, the system will automatically initiate a purchase requisition in the system. Step 5: Raise Purchase Order (PO) Once the approval is obtained, purchase order is to be created. For more information, refer to the Purchase Order Processing Business Procedure . All printed official purchase order and sales confirmation (if any) must be signed by Sales Manager or his designated person. Sales section is to type in case mark(s) onto the purchase order if required, or sales confirmation if required. Step 6: Goods Receipt (GR) NS performs a goods receipt process when vendor delivers goods to the customer. For more information, refer to the Goods Receipt Business Procedure . Step 7: Invoice Verification (IR) The sales administration posts the supplier invoice into the system. For more information, refer to the Invoice Verification Business Procedure .

Step 8: Create delivery document When shipment is done through air or sea, the airway bill number or the bill of lading number will be used to serve as the delivery note to customer. When shipment is done through land, delivery note to customer will be generated referring to the fill-up sales order. When delivery note to customer is needed it will be generated referring to the fill-up sales order. In the case of export sales, the Traffic Center will verify the LCs and shipment documents (ie. DO, packing list and export invoice) before approving the delivery. The system will also allow changes to some statistical data in the export sales documents (ie. material description etc.)







Start


End

InitiatePurchase Requisition


Goods Receipt



Invoice Verification




Special Considerations Goods issue of the appropriate stock is posted from the unrestricted-use stock to consignment stock (special stock) after GR is done. When we ship consignment stock to the customer, we record the transaction by creating a consignment fill-up order (order type KB). As a result, the system carries out the following actions: • If special stock does not yet exist in our inventory for the customer (or special stock partner), the system

creates it when goods issue is posted. • The relevant quantity is removed from regular inventory in our plant and is added to the special stock for the

customer. The total valuated stock for the plant remains the same. • The transaction is not relevant for pricing since the consignment stock remains the property of our company.




When we create an order for this customer, the system automatically proposes the partner function SB in the document header and the document items. Consignment goods, which have been entered in a consignment fill-up, are always posted to the stock of the special stock partner when goods issue is carried out. We can also enter the partner function SB manually in the document header or in the relevant items if a special stock partner is required and is not proposed from the customer master record. If a special stock partner does not exist in the document header, inventory management is carried out using the sold-to party. • Sales Document Header Doc Type Description Comments KB Consignment Fill-Up • Number Ranges Doc Type Number Ranges Comments KB ???

See Also a) Direct Order b) Returns Direct Order c) Intercompany Direct Order d) Contract Direct Order e) Consignment fill-up Direct Order without cost f) Consignment pick-up Direct Order with cost g) Consignment pick-up Direct Order without cost h) Consignment issue Direct Order with cost i) Consignment issue Direct Order without cost j) Consignment returns Direct Order k) Returns intercompany Direct Order (Returns to selling company) l) Returns intercompany Direct Order (Returns to ordering company)

Nissei Sangyo S17-Consignment Fill-up Direct Order without cost.doc – Business Procedure Overview


04/19/06 S17-Consignment Fill-up Direct Order without cost.doc Page: 1

Consignment Fill-up Direct Order without Cost


What Consignment Fill-up Direct Order without cost is a process used to supplement the customer’s consignment stock where goods are being delivered by vendor to the customer’s location and these goods are stored at the customer location but which are owned by the vendor. The customer is not obliged to pay for these goods until they remove them from consignment stock. Otherwise, the customer can usually return consignment good which are not required. Consignment processing offers the participating partners several advantages. Customers store the consignment goods at their own warehouses. The customer can access the goods in the consignment warehouse at any time. They are only billed for the goods when they are removed from the warehouse and only for the actual quantity taken. Consignment stock in this process is :-

• Managed separately from the rest of the stock to allow easier tracking of stock stored at the customer location. The usage of non-evaluated plant will be introduced for this purpose.


When The Consignment Fill-up Direct Order without Cost process begins when NS and the customer agree upon an outline agreement for consignment of products or services. There after, this process is used when there is a need to supplement the customer’s consignment stock.


Step 2: Create sales order Sales section creates sales order in the system by entering all required information into SAP system. System will do a credit checking. If the credit limit is exceeded, system will block the sales order for further transaction. Sales order will be printed for checking and approval process. Non valuated plant will be introduce.



Admin Executive


Admin Manager

Managing Director







Step 4: Initiate Purchase Requisition (PR) Once Admin section has generated the fill-up sales order, the system will automatically initiate a purchase requisition in the system. Step 5: Raise Purchase Order (PO) A FOC purchase order is to be created. For more information, refer to the Purchase Order Processing Business Procedure. All printed official purchase order and sales confirmation (if any) must be signed by Sales Manager or his designated person. Sales section is to type in case mark(s) onto the purchase order if required, or sales confirmation if required.

Step 6: Create GR document NS performs a goods receipt process when vendor delivers goods to the customer. The goods will be received into a non-valuated plant. For more information, refer to the Goods Receipt Business Procedure .

Step 7: Create delivery document A delivery with reference to the fill-up sales order is created.







Start


End



Create delivery document


Create GR document




Special Considerations Non-valuated plant is used to track consignment goods at the customer site, therefore only quantity is maintained in the NS system and the consignment goods are still owned by the supplier. Goods issue of the appropriate stock is posted from the unrestricted-use stock to consignment stock (special stock) after GR is done in the non-valuated plant. When we ship consignment stock to the customer, we record the transaction by creating a consignment fill-up order (order type KB). As a result, the system carries out the following actions: • If special stock does not yet exist in our inventory for the customer (or special stock partner), the system

creates it when goods issue is posted. • The relevant quantity is removed from non-valuated plant and is added to the special stock for the customer.

The total valuated stock for the non-valuated plant remains the same. • The transaction is not relevant for pricing.




When we create an order for this customer, the system automatically proposes the partner function SB in the document header and the document items. Consignment goods, which have been entered in a consignment fill-up, are always posted to the stock of the special stock partner when goods issue is carried out. We can also enter the partner function SB manually in the document header or in the relevant items if a special stock partner is required and is not proposed from the customer master record. If a special stock partner does not exist in the document header, inventory management is carried out using the sold-to party. • Sales Document Header Doc Type Description Comments KB Consignment Fill-Up • Number Ranges Doc Type Number Ranges Comments KB ???

See Also a) Direct Order b) Returns Direct Order c) Intercompany Direct Order d) Contract Direct Order e) Consignment fill-up Direct Order with cost f) Consignment pick-up Direct Order with cost g) Consignment pick-up Direct Order without cost h) Consignment issue Direct Order with cost i) Consignment issue Direct Order without cost j) Consignment returns Direct Order k) Returns intercompany Direct Order (Returns to selling company) l) Returns intercompany Direct Order (Returns to ordering company)

Nissei Sangyo S18-Consignment Pick-Up Direct Order with cost.doc – Business Procedure Overview


04/19/06 S18-Consignment Pick-Up Direct Order with cost.doc Page: 1

Consignment Pick-Up Direct Order with Cost


What Any consignment direct order goods with cost stored at the customer’s warehouse that haven’t been used can be re-posted to NS company’s warehouse with a consignment direct order pick-up with cost. If the customer returns consignment direct order stock to NS, NS records the transaction in the system by creating a consignment direct order pick-up order with cost . As a result, the system carries out the following actions:

• When goods issue is posted, the relevant quantity is deducted from the customer’s special stock and is added back into NS regular stock at the plant where the goods are returned. NS total valuated stock remains the same since the returned stock was regarded as part of NS own inventory even while it was at the customer’s premises.


When The Consignment Pick-Up Direct Order with Cost process begins when the returns consignment direct order stock to NS.

How Step 1: Customer returns goods Customer returns consignment direct order with cost stock to NS.

Step 2: Create Sales Order Sales section creates consignment pick-up direct order with cost sales order in the system by entering all required information into SAP system.

Step 3: Create Delivery Document Create a delivery document as the subsequent document for this consignment pick-up direct order with cost sales order and, post goods receipt. The good issue posting which initiates a transfer posting from the customer’s special stock to NS plant stock completes the transaction.







Start


End





Special Considerations Any consignment goods stored at the customer’s warehouse that haven’t been used can be re-posted to our company’s warehouse with a consignment pick-up. If the customer returns consignment stock to NS, NS record the transaction in the system by creating a consignment pick-up order (order type KA). As a result, the system carries out the following actions: • When goods issue is posted, the relevant quantity is deducted from the customer’s special stock and is added

back into our regular stock at the plant where the goods are returned. Our total valuated stock remains the same since the returned stock was regarded as part of our own inventory even while it was at the customer’s premises.


SAP Settings • Sales Document Header Doc Type Description Comments KA Consignment Pick-Up • Number Ranges Doc Type Number Ranges Comments KA ???

See Also a) Direct Order b) Returns Direct Order c) Intercompany Direct Order d) Contract Direct Order e) Consignment fill-up Direct Order with cost f) Consignment fill-up Direct Order without cost g) Consignment issue Direct Order with cost h) Consignment pick-up Direct Order without cost i) Consignment issue Direct Order without cost j) Consignment returns Direct Order k) Returns intercompany Direct Order (Returns to selling company) l) Returns intercompany Direct Order (Returns to ordering company)

Nissei Sangyo S19-Consignment Pick-Up Direct Order without cost.doc – Business Procedure Overview


04/19/06 S19-Consignment Pick-Up Direct Order without cost.doc Page: 1

Consignment Pick-Up Direct Order without Cost


What Any consignment direct order goods without cost stored at the customer’s warehouse that haven’t been used can be re-posted to non-valuated plant with a consignment direct order pick-up without cost process. If the customer returns consignment direct order stock to NS, NS records the transaction in the system by creating a consignment direct order pick-up order without cost. As a result, the system carries out the following actions:

• When goods issue is posted, the relevant quantity is deducted from the customer’s special stock and is added back into NS non-valuated plant regular stock where the goods are returned. NS total non-valuated stock remains the same since the returned stock was regarded as part of NS own inventory even while it was at the customer’s premises.


When The Consignment Pick-Up Direct Order without Cost process begins when the returns consignment direct order stock to NS.

How Step 1: Customer returns goods Customer returns consignment direct order without cost stock to NS.

Step 2: Create Sales Order Sales section creates consignment pick-up direct order without cost sales order in the system by entering all required information into SAP system.

Step 3: Create Delivery Document Create a delivery document as the subsequent document for this consignment pick-up direct order without cost sales order and, post goods receipt. The good issue posting which initiates a transfer posting from the customer’s special stock to NS non-valuated plant stock completes the transaction.

Step 4: Return to Vendor Return the goods to the vendor. For more information, refer to the Return to Vendor Business Procedure .







Start


End


Create Delivery DocumentReturn to Vendor




Special Considerations If the customer returns consignment stock to NS, NS record the transaction in the system by creating a consignment pick-up order (order type KA). As a result, the system carries out the following actions: • When goods issue is posted, the relevant quantity is deducted from the customer’s special stock and is added

back into non-valuated plant where the goods are returned. Our total non-valuated stock remains the same since the returned stock was regarded as part of our own inventory even while it was at the customer’s premises.


SAP Settings • Sales Document Header Doc Type Description Comments KA Consignment Pick-Up • Number Ranges Doc Type Number Ranges Comments KA ???

See Also a) Direct Order b) Returns Direct Order c) Intercompany Direct Order d) Contract Direct Order e) Consignment fill-up Direct Order with cost f) Consignment fill-up Direct Order without cost g) Consignment issue Direct Order with cost h) Consignment pick-up Direct Order with cost i) Consignment issue Direct Order without cost j) Consignment returns Direct Order k) Returns intercompany Direct Order (Returns to selling company) l) Returns intercompany Direct Order (Returns to ordering company)

Nissei Sangyo S20-Consignment Issue Direct Order with cost.doc – Business Procedure Overview


04/19/06 S20-Consignment Issue Direct Order with cost.doc Page: 1

Consignment Issue Direct Order with Cost


What Consignment Issue is a subsequent transaction for processing consignment stock in the SAP system and the same applies in the case of NS business environment for Consignment Stock Direct Order with Cost process, when the customer uses the consigned goods. Consignment issue enables the customer to take consignment goods from the special stock for their use. Consignment issue involves removing the goods from the special stock and making it the property of the customer. When the customer removes consignment stock to use, this transaction will be recorded in the system by creating a consignment issue order. As a result, the system carries out the following actions:

• When goods issue is posted, the relevant quantity is deducted from both the customer’s special stock and your own total valuated stock.


When The Consignment Issue Direct Order with Cost process begins when the customer removes consignment stock to use.


Step 2: Create Sales Order Sales section creates consignment issue direct order with cost sales order in the system by entering all required information into SAP system.

Step 3: Create Delivery Document Create a delivery as the subsequent document for this consignment issue sales order and, after picking has been completed successfully, post goods issue. The goods are then reduced by the relevant quantity in the special stock assigned to the customer. This goods issue also reduces the total stock in NS.

Step 4: Create Billing This transaction is relevant for pricing since the goods now become the property of the customer. Invoice the delivery document issuing the consignment goods.







Start


End


Create Invoice




Special Considerations When the customer removes consignment stock to use or sell, we record the transaction in the system by creating a consignment issue order (order type KE). As a result, the system carries out the following actions: • When goods issue is posted, the relevant quantity is deducted from both the customer’s special stock and our

own total valuated stock. • The transaction is relevant for pricing since the goods now become the property of the customer.

SAP Settings • Sales Document Header Doc Type Description Comments KE Consignment Issue • Number Ranges Doc Type Number Ranges Comments KE ??? • Other settings are the same like stock order processing.

See Also a) Direct Order b) Returns Direct Order c) Intercompany Direct Order d) Contract Direct Order e) Consignment fill-up Direct Order with cost f) Consignment fill-up Direct Order without cost g) Consignment pick-up Direct Order with cost h) Consignment pick-up Direct Order without cost i) Consignment issue Direct Order without cost j) Consignment returns Direct Order k) Returns intercompany Direct Order (Returns to selling company) l) Returns intercompany Direct Order (Returns to ordering company)

Nissei Sangyo S21-Consignment Issue Direct Order without cost.doc – Business Procedure Overview


04/19/06 S21-Consignment Issue Direct Order without cost.doc Page: 1

Consignment Issue Direct Order without Cost


What Consignment Issue is a subsequent transaction for processing consignment stock in the SAP system and the same applies in the case of NS business environment for Consignment Stock Direct Order without Cost process, when the customer uses the consigned goods. Consignment issue enables the customer to take consignment goods from the special stock for their use. Consignment issue involves removing the goods from the special stock and making it the property of the customer. When the customer removes consignment stock to use, this transaction will be recorded in the system by creating a consignment issue order. As a result, the system carries out the following actions:

• When goods issue is posted, the relevant quantity is deducted from both the customer’s special stock and your own total valuated stock from the non-valuated plant.


When The Consignment Issue Direct Order without Cost process begins when the customer removes consignment stock to use.


Step 2: Create Sales Order Sales section creates consignment issue direct order without cost sales order in the system by entering all required information into SAP system.

Step 3: Initiate Purchase Requisition (PR) Once Admin section has generated the sales order, the system will automatically initiate a purchase requisition in the system. Step 4: Raise Purchase Order (PO) Once the approval is obtained, purchase order is to be created. For more information, refer to the Purchase Order Processing Business Procedure . All printed official purchase order and sales confirmation (if any) must be signed by Sales Manager or his designated person. Sales section is to type in case mark(s) onto the purchase order if required, or sales confirmation if required. Step 5: Invoice Verification (IR) The sales administration posts the supplier invoice into the system. For more information, refer to the Invoice Verification Business Procedure .

Step 6: Create Delivery Document Create a delivery as the subsequent document for this consignment issue sale order and then post goods issue. The goods are then reduced by the relevant quantity in the special stock assigned to the customer. This goods issue also reduces the non-valuated plant’s total stock in NS.

Step 7: Create Billing This transaction is relevant for pricing since the goods now become the property of the customer. Invoice the delivery document issuing the consignment goods.










Start


End


Create Invoice







Special Considerations When the customer removes consignment stock to use or sell, we record the transaction in the system by creating a consignment issue order (order type KE). As a result, the system carries out the following actions: • When goods issue is posted, the relevant quantity is deducted from both the customer’s special stock and our

own total non-valuated stock. • The transaction is relevant for pricing since the goods now become the property of the customer. • It triggers a PO to supplier and supplier will send invoice to us

SAP Settings • Sales Document Header Doc Type Description Comments KE Consignment Issue • Number Ranges Doc Type Number Ranges Comments KE ??? • Other settings are the same like consignment issue direct order.

See Also a) Direct Order b) Returns Direct Order c) Intercompany Direct Order d) Contract Direct Order e) Consignment fill-up Direct Order with cost f) Consignment fill-up Direct Order without cost g) Consignment pick-up Direct Order with cost h) Consignment pick-up Direct Order without cost i) Consignment issue Direct Order with cost j) Consignment returns Direct Order k) Returns intercompany Direct Order (Returns to selling company) l) Returns intercompany Direct Order (Returns to ordering company)

Nissei Sangyo S22-Inter Company Direct Order.doc – Business Procedure Overview


04/19/06 S22-Inter Company Direct Order.doc Page: 1

Inter Company Direct Order


What Inter company business processing describes business transactions which take place between two companies (company codes) belonging to one organization. In the case of Inter Company Direct Order, a sales organization that is assigned to the ordering company code creates sales order ordering goods from a plant assigned to another company code. The plant in the delivering company code delivers the goods to the customer for whom the sales organization placed the order. The delivering plant bills the ordering company (sales organization) - this process is termed as inter company billing and this billing process carry out posting to vendor account for the ordering company code.

When When one plant needs the help of another plant assigned to another company code to deliver goods to the customer.






Delivering Plant

2) PO

3) SalesOrder5) Invoice

1) Sales Order8) Invoice

4) Delivery

6) Confirmation7) Invoice Verification




Step 6: Create sales order Sales section creates sales order in the system by entering all required information into SAP system. Sales order will be printed for checking and approval process. System will do a credit checking. If the credit limit is exceeded, system will block the sales order for further processing. Sales order will be printed for checking and approval process. In SAP, the plant doing this will be referred to as the ordering plant. The main thing here is to maintain the correct delivering plant.



Admin Executive


Admin Manager

Managing Director



Step 8: Initiate Purchase Requisition (PR) Once Admin section has generated the sales order, the system will automatically initiate a purchase requisition in the system. Step 9: Raise Purchase Order (PO) Once the approval is obtained, purchase order is to be created. For more information, refer to the Purchase Order Processing Business Procedure . All printed official purchase order and sales confirmation (if any) must be signed by Sales Manager or his designated person. Sales section is to type in case mark(s) onto the purchase order if required, or sales confirmation if required.




Step 10: Create sales order Delivering plant sales section creates sales order in the system by entering all required information into SAP system. Sales order will be printed for checking and approval process.

Step 11: Create delivery document When the sales order has been created and saved, the delivering plant will deliver the goods to the customer. Step 12: Post Goods Receipt (GR) The ordering plant will do a goods receipt at the same time the delivery document is created. Step 13: Create billing document Delivering plant bills ordering plant for the delivery done. Step 14: Create Export Invoice If it is an oversea shipment, an export invoice is being generated and printed. Step 15: Invoice Verification (IR) Based on the delivering plant invoice referring to a sales order and shipping documents, sales section of the ordering plant verifies and enters the required data into the SAP system. The posted invoice passes on information about payments to delivering plant into Financial Accounting. For more information, refer to the Invoice Verification Business Procedure .

Step 16: Create billing document After the delivering plant has delivered the goods, all necessary documents are to be submitted to Admin section for invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document to customer referring to sales order.












Start

QuotationNeeded?

No


Yes

QuotationApprove?

Yes


No

Yes

End

No



Create Billing DocumentInvoice Verification


End

Post Goods Receipt

Ordering Plant

Delivering Plant

Create Export InvoiceNeed Export

Invoice?Yes

No











IV

IG

See Also a) Direct Order b) Contract Direct Order c) Scheduling agreement Direct Order d) Returns Direct Order e) Consignment fill-up Direct Order with cost f) Consignment fill-up Direct Order without cost g) Consignment pick-up Direct Order with cost h) Consignment pick-up Direct Order without cost i) Consignment issue Direct Order with cost j) Consignment issue Direct Order without cost k) Consignment returns Direct Order l) Returns inter company Direct Order (Returns to selling company) m) Returns inter company Direct Order (Returns to ordering company)

Nissei Sangyo S23-Returns Inter Company Direct Order.doc – Business Procedure Overview


04/19/06 S23-Returns Inter Company Direct Order.doc Page: 1

Returns Inter Company Direct Order


What When customers who purchases through inter company direct order, returns the goods, an Inter Company Returns Direct Order process is activated once the returned goods are checked and the return approved. There are two scenarios for an Inter Company Returns Direct Order process, customer returns to ordering plant and ordering plant returns to delivering plant OR customer returns to delivering plant.

When The returns inter company direct order process begins when customer returns the goods.

How A. Goods returned to ordering plant

Step 1: Customer returns goods to ordering plant Customer returns goods to ordering plant.

Step 2: Approve Returns When customer does a return based on a complaint, ordering plant:


• Approve the return, arrange for stock transfer back to delivering plant and carry on with subsequent process of issuing a credit and debit memo with reference to the return to customer and delivering plant.

• Approve the return, arrange for stock transfer back to delivering plant and implement a free of charge subsequent delivery based on the return

• Reject the return

Step 3: Create sales order Sales section in the ordering plant creates return sales order in the system by entering all required information into SAP system. System will do credit checking. If the credit limit is exceeded the maximum limit allowed, system will block the sales order for further transaction. Sales order will be printed for checking and approval process.


Delivering Plant

Goods Returned

Goods Returned

Credit Memo

IntercompanyCredit Memo





Step 5: Create billing document After the goods have been receipts, all necessary documents are to be submitted to Admin section for invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document – credit memo referring to sales order for the customer. Step 6: Ordering plant returns goods to delivering plant Ordering plant returns the goods to delivery plant. For more information, refer to Return to Vendor Business Procedure.

Step 7: Create sales order Sales section in the delivering plant creates return sales order in the system by entering all required information into SAP system. System will do credit checking. If the credit limit is exceeded the maximum limit allowed, system will block the sales order for further transaction. Sales order will be printed for checking and approval process.

Step 8: Create delivery document A delivery (returns delivery – post goods receipt) with reference to the return is created. The goods issue posted for the return delivery matches the goods receipt to the stock at the delivering plant.

Step 9: Create billing document After the goods have been receipts, all necessary documents are to be submitted to Admin section for invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document – credit memo referring to sales order for the ordering plant. B. Goods returned to delivering plant

Step 1: Customer returns goods to delivering plant Customer returns goods to delivering plant.

Step 2: Customer Informs ordering plant When customer does a return based on a complaint to the delivering plant, customer will update ordering plant of the return.

Step 3: Approve Returns When customer does a return based on a complaint, delivering plant:


Delivering Plant

Goods Returned

IntercompanyCredit Memo

Credit Memo





• Approve the return, carry on with subsequent process of issuing a credit and debit memo with reference to the return to customer and ordering plant.

• Approve the return, implement a free of charge subsequent delivery based on the return • Reject the return

Step 4: Create sales order Sales section creates a sales order for credit memo request in the system by entering all required information into SAP system. System will do credit checking. If the credit limit is exceeded the maximum limit allowed, system will block the sales order for further transaction. Sales order will be printed for checking and approval process.

Step 5: Create delivery document A delivery (returns delivery – post goods receipt) with reference to the return is created. The goods issue posted for the return delivery matches the goods receipt to the stock at the delivering plant.

Step 6: Create billing document Once the credit memo request has been created, all necessary documents are to be submitted to Admin section for invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document – credit memo referring to credit memo request to the ordering plant. Step 6: Delivering plant issues credit note to ordering plant After receiving credit note, ordering plant post the credit note in SAP.

Step 7: Create sales order Sales section at the ordering plant creates a sales order for credit memo request in the system by entering all required information into SAP system. System will do credit checking. If the credit limit is exceeded the maximum limit allowed, system will block the sales order for further transaction. Sales order will be printed for checking and approval process.

Step 8: Create billing document Once the credit memo request has been created, all necessary documents are to be submitted to Admin section for invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document – credit memo referring to credit memo request to the customer.






B. Goods Returned to Delivery PlantA. Goods Returned to OrderingPlant

Customer returnsgoods to Ordering

Plant

Check and ApproveReturn

Start

End

Create DeliveryDocument


Create BillingDocument


Ordering plantreturns goods todelivering plant

Customer returnsgoods to delivery

plant

Customer informsordering plant

Start

End


Create Sales Order

Receive Credit Note

Check and ApproveReturn









Ord

erin

g Pl

ant

Del

iver

ing

Plan

t

Del

iver

ing

Plan

tO

rder

ing

Plan

t







See Also a) Direct Order b) Contract Direct Order c) Inter company Direct Order d) Consignment fill-up Direct Order with cost e) Consignment fill-up Direct Order without cost f) Consignment pick-up Direct Order with cost g) Consignment pick-up Direct Order without cost h) Consignment issue Direct Order with cost i) Consignment issue Direct Order without cost j) Returns Direct Order

Nissei Sangyo S24-Inter Company Direct Order with Supplier.doc – Business Procedure Overview


04/19/06 S24-Inter Company Direct Order with Supplier.doc Page: 1

Inter Company Direct Order with Supplier


What Inter company business processing describes business transactions which take place between two companies (company codes) belonging to one organization, company A (ordering plant) and company B - (please refer to the Inter Company Direct Order Process BPP). In the case of Inter Company Direct Order with supplier, a sales organization that is assigned to the ordering company code(company A) creates sales order ordering goods from a plant assigned to another company code(company B) which would do a direct order process to request the vendor to deliver the goods to the customer (please refer to the Direct Order Process BPP). Then, company B bills the ordering company (company A) - this process is termed as inter company billing and this billing process carry out posting to vendor account for the ordering company code and the ordering plant will then bill the customer.

When When one plant needs the help of another plant assigned to another company code to request a vendor to deliver goods to the customer.



Step 3: Approved Quotation Customer is satisfied with the quotation. Go to step 4. If customer is not happy with the quotation the customer may request for the quotation to be revised. Step 4: Customer raises an order A customer raises a Purchase Order to ordering plant.


Delivering Plant

2) PO

3) SalesOrder8) Invoice

1) Sales Order11) Invoice

4) Delivery

9) Confirmation10) Invoice Verification

Supplier3) PO

5) Invoice6) Confirmation7) Invoice Verification





Step 6: Create sales order Sales section creates sales order in the system by entering all required information into SAP system. Sales order will be printed for checking and approval process. System will do a credit checking. If the credit limit is exceeded, system will block the sales order for further transaction. Sales order will be printed for checking and approval process.



Admin Executive


Admin Manager

Managing Director



Step 8: Initiate Purchase Requisition (PR) Once Admin section has generated the sales order, the system will automatically initiate a purchase requisition in the system. Step 9: Raise Purchase Order (PO) in Company A Once the approval is obtained, purchase order is to be created. For more information, refer to the Purchase Order Processing Business Procedure .




All printed official purchase order and sales confirmation (if any) must be signed by Sales Manager or his designated person. Sales section is to type in case mark(s) onto the purchase order if required, or sales confirmation if required.

Step 10: Create sales order Company B sales section creates sales order in the system by entering all required information into SAP system. Sales order will be printed for checking and approval process.

Step 11: Initiate Purchase Requisition (PR) Once Admin section has generated the sales order, the system will automatically initiate a purchase requisition in the system. Step 12: Raise Purchase Order (PO) in Company B Once the approval is obtained, Admin section converts purchase requisition to purchase order. The official purchase order will be printed and sent to the vendor. All printed official purchase order and sales confirmation (if any) must be signed by Sales Manager or his designated person. Sales section is to type in case mark(s) onto the purchase order if required, or sales confirmation if required. Step 13: Post Goods Receipt When the customer has acknowledged receipt of the goods from the vendor, Sales dept in Company B will perform a goods receipt. In this post goods receipt case, no accounting entry would be generated. If needed, a delivery note can be generated when delivery is done through land. Step 14: Invoice Verification in Company B The customer receives the goods from the vendor and the vendor bills company B. Sales Administration in company B posts invoice from vendor Step 15: Post Goods Receipt When the customer has acknowledged receipt of the goods from the vendor, Sales dept in Company A will perform a goods receipt. In this post goods receipt case, no accounting entry would be generated. If needed, a delivery note can be generated when delivery is done through land. Step 16: Create Export Invoice If it is an oversea shipment, an export invoice is being generated and printed. Step 17: Invoice Verification in Company A Company A receives invoice from the company B. Sales Administration in Company A posts invoice in SAP.

Step 18: Create billing document All necessary documents are to be submitted to Admin section for invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document to customer referring to sales order.





Business Procedure Flow





Initiate Purchase Requisition

Create POin CompanyA

Start

QuotationNeeded?


Yes

QuotationApprove?

Yes


No

Yes

End

No


Initiate Purchase Requisition

Create POin Company B

Invoice Verification inCompany B

Invoice Verification inCompany A


End

Company A(Ordering Plant)

Company B(Delivering Plant)

Post Goods Receipt

Need ExportInvoice?

No

Post Goods Receipt

Create Export InvoiceYes

No











IV

IG

See Also Intercompany Direct Order Intercompany Stock Order

Nissei Sangyo S25-DebitCredit Memo Processing.doc – Business Procedure Overview


04/19/06 S25-DebitCredit Memo Processing.doc Page: 1

Debit/Credit Memo Processing


What Creating a credit or debit memo request enables creation of credit or debit memos based on a complaint. If the price calculated for the customer was too high (for example, with the wrong scaled prices or because a discount was forgotten, etc.), a credit memo request is created. The credit memo request can be automatically blocked for checking. Once it has been approved, the block can be removed. Consequently, if the prices calculated for the customer were too low (for example, if the wrong scale prices were calculated, etc.), a debit memo request is created. The debit memo request can be automatically blocked for checking. Once it has been approved, the block can be removed. A debit or credit memo request can be created in the following ways: – Without reference to an order – With reference to an existing order, enter which order the complaint refers to. – With reference to an invoice, enter which invoice the complaint refers to. In all cases, the value or quantities that should be in the credit or debit memo are specified. In SAP, the following entries are important when creating a debit or credit memo request:

• Customer number of the business partner who requests a credit memo or to whom a debit memo is to be forwarded

• Order reason (why the debit/credit memo request is necessary) • Material and the quantity in the request

When Credit Memo Requests - If the customer complains that the price was miscalculated (for example, too high) you request a credit memo for the appropriate sum, and you do not take the goods back. Debit Memo Requests - If prices were calculated as too low, you request a debit memo.

How Step 1: Create sales order Sales section creates debit/credit memo request in the system by entering all required information into SAP system. Debit/Credit memo request will be printed for checking and approval process. System will do a credit checking. If the credit limit is exceeded, system will block the sales order for further transaction.



Admin Executive


Admin Manager

Managing Director







Step 3: Create billing document When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document referring to debit/credit memo request.






Start

End








SAP Settings • Sales Document Header Doc Type Description Comments ZDM Debit memo request ZCM Credit memo request • Sales Document Number Ranges Doc Type Number Ranges Comments ZDM ??? ZCM • Sales Copy Control • Billing Document Doc Type Description Comments ZL2 Debit memo ZG2 Credit memo

See Also a) Inter Company Debit/Credit Memo processing

Nissei Sangyo S26-Inter Company DebitCredit Memo Processing.doc – Busi ness Procedure Overview


04/19/06 S26-Inter Company DebitCredit Memo Processing.doc Page: 1

Inter Company Debit/Credit Memo Processing


What Creating a credit or debit memo request enables creation of credit or debit memos based on a complaint. In this case, the debit or credit memo request is a business transaction which takes place between two companies (company codes) belonging to one organization. If the price calculated for Company A was too high (for example, with the wrong scaled prices or because a discount was forgotten, etc.), a credit memo request is created. The credit memo request can be automatically blocked for checking. Once it has been approved, the block can be removed. Consequently, if the prices calculated for Company B were too low (for example, if the wrong scale prices were calculated, etc.), a debit memo request is created. The debit memo request can be automatically blocked for checking. Once it has been approved, the block can be removed. A debit or credit memo request can be created in the following ways: – Without reference to an order – With reference to an existing order, enter which order the complaint refers to. – With reference to an invoice, enter which invoice the complaint refers to. In all cases, the value or quantities that should be in the credit or debit memo are specified. In SAP, the following entries are important when creating a debit or credit memo request:

• The company who requests a credit memo or to whom a debit memo is to be forwarded • Order reason (why the debit/credit memo request is necessary) • Material and the quantity in the request

When Credit Memo Requests - If Company A complains that the price was miscalculated (for example, too high) you request a credit memo for the appropriate sum, and you do not take the goods back. Debit Memo Requests - If Company B complains prices were calculated as too low, a debit memo is requested.

How Step 1: Request for Cr./Dr. Memo In NS a request for Cr./Dr. Memo arises due to price difference or returns. Step 2: Create sales order Sales section creates debit/credit memo request in the system by entering all required information into SAP system. Debit/Credit memo request will be printed for checking and approval process. System will do a credit checking. If the credit limit is exceeded, system will block the sales order for further transaction.



Admin Executive


Admin Manager

Managing Director







Step 4: Create billing document When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document referring to debit/credit memo request.

Step 5: Dr./Cr. Memo Receipt The company who requests a credit memo or to whom a debit memo is to be forwarded receives the Dr./Cr. Memo and post it into SAP.






Start

End




Dr./Cr. Memo Receipt

Request for Cr/Dr memo

Com

pany

AC

ompa

ny B




Special Considerations For the intercompany debit/credit memo, another company will receive debit/credit memo.

SAP Settings • Sales Document Header Doc Type Description Comments OR Standard Order • Sales Document Number Ranges Doc Type Number Ranges Comments OR ??? • Sales Copy Control • Billing Document Doc Type Description Comments G2 Credit Memo L2 Debit Memo • Delivery Document Number Ranges Doc Type Number Ranges Comments G2 ??? L2 ???

See Also a) Debit/Credit Memo processing

Nissei Sangyo S27-Commissions Processing.doc – Business Procedure Overview


04/19/06 S27-Commissions Processing.doc Page: 1

Commissions Processing


What A commission is given to an agent who gets the sales order. It is to be paid per transaction and only after the customer has made the payment for the sales incurred.

When The Commission process begins when NS and the Agent agree upon an outline agreement for commissions from sale of products or services.

How Step 1: Create sales order Sales section creates a credit memo request in the system by entering all required information into SAP system. The Credit memo request will be printed for checking and approval process. System will do a credit checking. If the credit limit is exceeded, system will block the sales order for further transaction.



Admin Executive


Admin Manager

Managing Director

Commission Payable (To Agent) Per Contract O O O Θ


Step 3: Create billing document When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates a credit memo referring to the credit memo request.






Start

End




NS raise commissionagreementwith Agent





SAP Settings • Sales Document Header Doc Type Description Comments ZCOM Commissions • Sales Document Number Ranges Doc Type Number Ranges Comments ZCOM ??? • Sales Copy Control • Billing Document Doc Type Description Comments ZCOM Commissions

See Also a) Inter Company Commissions processing

Nissei Sangyo S28-Inter Company Commissions Processing.doc – Business Procedure Overview


04/19/06 S28-Inter Company Commissions Processing.doc Page: 1

Inter Company Commissions Processing


What It is an agreement between two companies (company codes) belonging to one organization for commissions to be paid by Company A to Company B for services rendered by Company B.

When The Inter Company Commission process begins when two companies (company codes) belonging to one organization agrees upon an outline agreement for commissions from services rendered.

How Step 1: Create sales order Sales section creates a credit memo request in the system by entering all required information into SAP system. The Credit memo request will be printed for checking and approval process. System will do a credit checking. If the credit limit is exceeded, system will block the sales order for further transaction.



Admin Executive


Admin Manager

Managing Director






Step 3: Create billing document When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates a credit memo referring to the credit memo request.

Step 4: Cr. Memo Receipt The company rendering the service or eligible for the commission payment according to an outline commission agreement receives the Cr. Memo.



Start

End




Commission Agreementraised betwen two company

Cr. Memo Receipt

Com

pany

AC

ompa

ny B




Special Considerations If NS gets the order from Japanese Companies, NS will give commissions to NS Tokyo.

SAP Settings • Sales Document Header Doc Type Description Comments ZCOM Commissions • Sales Document Number Ranges Doc Type Number Ranges Comments ZCOM ??? • Sales Copy Control • Billing Document Doc Type Description Comments ZCOM Commissions

See Also a) Commissions processing

Nissei Sangyo S29-Special Discount.doc – Business Procedure Overview


04/19/06 S29-Special Discount.doc Page: 1

Special Discount


What A special discount in the NS business may be a retroactive payment to the customer or a discount given to the customer on a yearly basis. If it is a retroactive payment to the customer, a special discount agreement has to be created in the system. This special discount is based on the customer's sales volume over a specified time period as defined and agreed upon in a special discount agreement. This agreement will have details such as,

• who receives the special discount payment • On what criteria the special discounts is based ( customer, customer and material , and so on). • How long the special discount agreement is valid – period.

Special discount Agreement can be settled partially or fully. In NS environment a full settlement is used. The system automatically calculates the special discount based on the sales volume statistics or the lump sum and deducts any previously paid special discounts. It then creates a credit memo request, and the document is automatically blocked for billing. After approving the credit memo request, the person responsible can remove the billing block. Now, create the final credit memo and issue the credit memo to the customer. If a discount is to be given to a customer on a yearly basis, NS will raise a credit memo request. When the system creates a credit memo request, the document is automatically blocked for billing. After approving the credit memo request, the person responsible can remove the billing block. Now, create the final credit memo and issue the credit memo to the customer.

When The Special Discount process begins when the customers request for it.

How Step 1: Customer request Upon customer request.

Step 2: Retroactive Payment Check if it is a retroactive payment or a yearly (periodically) discount payment Step 3: Create sales order If it is not retroactive payment, sales section creates a credit memo request in the system by entering all required information into SAP system. Credit memo request will be printed for checking and approval process. System will do a credit checking. If the credit limit is exceeded, system will block the sales order for further transaction.



Admin Executive


Admin Manager

Managing Director







Step 5: Create billing document When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates credit memo referring to credit memo request.

Step 6: Create special discount agreement If it is retroactive payment, create a special discount agreement in the system.

Step 7: Check and Approve special discount agreement Admin section to check and approve special discount agreement before settling special discount.

Step 8: Settling Special discount Run settling special discount.

Step 9: Go to Step 3 Go to step 3






Start

End




Customer request

AgreementRequired?

Create Special DiscountAgreement

Check and approvespecial discount agreement

Yes

No

SettlingSpecial Discount





SAP Settings The standard version of the SAP R/3 System includes the following agreement types (the table shows the corresponding condition types): Agreement type Basis of special discount condition type 0001 Customer/material (%) BO01 Customer group (%) BO01 0002 Customer/material

(quantity dependent) BO02

0003 Customer (%) BO03 0004 Customer hierarchy (%) BO04 Cust. hierarchy/material(%) BO05 0005 Sales volume independent BO06 We can process the special discount agreements when the following prerequisite conditions are met: • The sales organization in which we are processing sales orders must be relevant for the special discount

processing. We set this indicator in Customizing for Sales. • The payer must be relevant for rebate processing. In many cases, the payer is the same as the customer. You

indicate whether a customer can receive the special discount by marking the Rebates field in the Billing view of the customer master record.

• The billing type (invoice, credit memo, and so on) we are using must be relevant for rebate processing. We set this indicator when defining billing types in Customizing for Sales.

See Also Stock Order Processing Direct Order Processing

Nissei Sangyo S30-Sending Samples with Cost.doc – Business Procedure Overview


04/19/06 S30-Sending Samples with Cost.doc Page: 1

Sending Samples with Cost


What In this case, NS delivers free samples to the customer upon request from the customer. NS will purchase these samples from the vendor.

When When the customer raises a request for samples.

How Step 1: Customer raises a request Customer raises a request for samples to Nissei Sangyo.

Step 2: Create sales order Sales section creates sales order in the system by entering all required information into SAP system.

Step 3: Create delivery document When shipment is done, delivery note to customer will be generated referring to sales order. The system will also allow changes to some statistical data in the export sales documents (ie. material description etc.) Since it is free samples to the customer this delivery will not be subjected to any billing.






Customer raises a request

Start

End






Special Considerations We can create free of charge deliveries for sending samples of our products to the customer. The system will then generate a delivery based on the free-of-charge delivery. This product is purchased from the supplier.

SAP Settings • Sales Document Header Doc Type Description Comments OR Standard Order • Sales Document Number Ranges Doc Type Number Ranges Comments OR ??? • Sales Copy Control • Delivery Document Doc Type Description Comments LF Standard Delivery • Delivery Document Number Ranges Doc Type Number Ranges Comments LF ??? • Delivery Copy Control

See Also a) Sending samples without Cost b) Sending Samples with Price

Nissei Sangyo S31-Sending Samples without Cost.doc – Business Procedure Overview


04/19/06 S31-Sending Samples without Cost.doc Page: 1

Sending Samples without Cost


What In this case, NS delivers free samples to the customer upon request from the customer. NS will obtain these samples free from the vendor too.




Step 3: Create delivery document When shipment is done, delivery note to customer will be generated referring to sales order. The system will also allow changes to some statistical data in the export sales documents (ie. material description etc.) Since it is free samples to the customer this delivery will not be subjected to any billing.







Start

End






Special Considerations We can create free of charge deliveries for sending samples of our products to the customer. The system will then generate a delivery based on the free-of-charge delivery. This product is given free from the supplier.

SAP Settings • Sales Document Header Doc Type Description Comments OR Standard Order • Sales Document Number Ranges Doc Type Number Ranges Comments OR ??? • Sales Copy Control • Delivery Document Doc Type Description Comments LF Standard Delivery • Delivery Document Number Ranges Doc Type Number Ranges Comments LF ??? • Delivery Copy Control

See Also a) Sending samples with Cost b) Sending Samples with Price

Nissei Sangyo S32-Sending Samples with Price.doc – Business Procedure Overview


04/19/06 S32-Sending Samples with Price.doc Page: 1

Sending Samples with Price


What In this case, NS delivers samples to the customer upon request from the customer and bills customer for these samples. NS will obtain these samples free from the vendor.




Step 3: Create delivery document When shipment is done, delivery note to customer will be generated referring to sales order. In the case of export sales, the Traffic Center will verify the LCs and shipment documents (ie. DO, packing list and export invoice) before approving the delivery. The system will also allow changes to some statistical data in the export sales documents (ie. material description etc.)

Step 4: Create billing document After the goods have been delivered, all necessary documents are to be submitted to Admin section for invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document referring to sales order.







Start

End







Special Considerations It is the same like stock order processing.

SAP Settings • • Sales Document Header Doc Type Description Comments OR Standard Order • Sales Document Number Ranges Doc Type Number Ranges Comments OR ??? • Sales Copy Control • Delivery Document Doc Type Description Comments LF Standard Delivery • Delivery Document Number Ranges Doc Type Number Ranges Comments LF ??? • Delivery Copy Control • Billing Document Doc Type Description Comments F2 Invoice • Billing Document Number Ranges Doc Type Number Ranges Comments F2 ???

See Also a) Sending samples with Cost b) Sending samples without Cost

Nissei Sangyo S33-Installation_Warranty_Service Agreement.doc – Business Procedure Overview


04/19/06 S33-Installation_Warranty_Service Agreement.doc Page: 1

Installation/Warranty Service Agreement


What Installation/warranty Service Agreement or service agreement in SAP, is a agreement to record the details of the installation/warranty/service package that NS have agreed to provide a service recipient with, over a specified period of time. Currently, NS only has this agreement between NSHS and Sanyo Hi-Tech Company (SHC). In this agreement, NSHS is to provide installation and NSHS or another party ( Sanyo Hi-Tech Services – SHS ) will carry out warranty services for a year to SHC ‘s customers who purchase the Sanyo Chipmounter product. Consequently, NSHS will bill SHC in 3 billings. First billing is for the installation cost, the second invoice is the cost for the first six months of warranty and the third billing is the cost for the last six months of warranty. In SAP, NSHS will perform a cumulative billing for the second and third invoice generation. The table below shows the conditions NSHS requires before doing an installation or warranty services under the installation/warranty/service agreement. Sales Order Entry Type Done By Conditions Evidence Installation 1. NSHS Engineer

2. SHS Engineer

A fact of receipt of PO from customer A fact of receipt of PO from customer

Original PO from customer 1. Original PO from Customer

(NSS/NST/SHC) 2. Service Claim/Report from

SHS Warranty 1. NSHS Engineer

2. SHS Engineer


Original PO from customer 1. Original PO from Customer


SHS Invoicing Type Done By Conditions Evidence Installation 1. NSHS Engineer

2. SHS Engineer

A fact of Completion of Installation A fact of Completion of Installation

1. Service Report Acknowledged by Customer

2. Acceptance Test 1. Service Report

Acknowledged by Customer 2. Acceptance Test 3. Service Claim/Report from

SHS 4. Invoice from SHS

Warranty 1. NSHS Engineer 2. SHS Engineer

A fact of service done by the respective engineer A fact of service done by the respective engineer



2. Service Claim/Report from SHS

3. Invoice from SHS

When When NSHS and the customer agree upon an outline agreement for sale of installation/warranty/services through this process. There after, customer fulfills this agreement by placing purchase order (PO) to NSHS.




How Step 1: Customer raises outline agreement NSHS and the customer agree upon an outline agreement for sale of installation/warranty/services through this process.

Step 2: Create service agreement Sales section creates a service agreement in the system by entering all required information into SAP system. System will do a credit checking. If the credit limit is exceeded, system will block the sales order for further transaction. Sales order will be printed for checking and approval process.

Step 3: Check and approve trade Transaction Amount Limit Authorization by

SVS ADM MD OFFR MGR DR OFFR EX MGR

Order ~ $1000 O X $1001 ~ $5000 O O X $5001 ~ $20000 O O O O O X $20001 ~ O O O O O O X

Acknowledgement of Order

ALL O X

Stock Purchase (Stock In)

ALL O O O O O X X

Miteihin ALL O O O O O X X Advance Payment ALL O O O O O X X Negative Margin/ Decrease of Margin

~ $1000 O O X

$1001 ~ $5000 O O O O O X $5001 ~ O O O O O O X

Order Cancellation ~ $1000 O O X $1001 ~ $10000 O O O O O X $10001 ~ O O O O O X X

Registration of customer/supplier

ALL O O O O X

Registration of Item ALL O X Delivery (Authorization of D/O & Export Invoice)

ALL O X

Sales (Issuing Tax Invoice)

ALL O O X

O = Check X = Authorization When Admin section receives all relevant documents from the sales section, Admin section it to check and confirm the fill-up sales order. If the fill-up order is rejected, all documents concerned are to return to the sales section.

Step 4: Create billing document Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document.




Step 5: Create invoice list An invoice list allows NS to create, at specified time intervals (as indicated in the service agreement), a list of billing invoices to send to the customer. The billing invoices in the invoice list can be single or collective documents (collective invoices combine items from more than one delivery). In the case of NS its collective. NS uses this step when doing billing for warranty services.

Step 6: Collect service reports and staff claims from service engineers After servicing is done, service engineers will produce a service report to indicate the number of hours worked and attached the staff claims for the service. Staff claims will indicate the amount for travel expenses.

Step 7: Post activity hours to the service agreement. Upon receipt of service report, Admin section will book the number of service hours to the service agreement and relevant item number. The service agreement will serve as an object for cost capturing.

Step 8: Post travel expense to the service agreement. Upon receipt of staff claims for travel, Admin department will book the travel expenses to the service agreement and item number.

Step 9: Settle cost to CO-PA for reporting at month-end. At month-end, Admin section will settle the cost incurred from service agreement to CO-PA profitability segments for reporting purposes.







Start

CreateService Agreement

Check and ApproveService Agreement

End


Create Invoice List

InstallationOR

WarrantyWarrantyInstallation

Obtain Service Reports andStaff Claims from service

engineers.

Post service hoursreferencing service contract

and item no.

Settle cost to CO-PA forreporting at month end.

Post travel expensesreferencing service contract

and item no.





SAP Settings • Invoice List • Periodic billing • Sales Document Header Doc Type Description Comments ZSA Service Agreement • Sales Document Number Ranges Doc Type Number Ranges Comments ZSA ??? • Sales Copy Control • Billing Document Doc Type Description Comments ZSA Service Agreement

See Also a) Inter Company Installation/warranty Service Agreement b) Chargeable Service

Nissei Sangyo S34-Inter Company Installation_Warranty_Service Agreement.doc – Business Procedure Overview


04/19/06 S34-Inter Company Installation_Warranty_Service Agreement.doc Page: 1

Inter Company Installation/Warranty Service Agreement


What Inter Company Installation/warranty Service Agreement is very similar to that of Installation/warranty Service Agreement Process (please refer to the Installation/warranty Service Agreement BPP). The difference is that, this agreement is now between two company codes belonging to the same organization. Currently, in NS, this agreement is practiced between NSHS and NSS or NSHS with NSTH.

When When two company codes belonging to the same organization agree upon an outline agreement for sale of installation/warranty/services through this process. There after, the ordering plant fulfills this agreement by placing purchase order (PO) to the delivering plant.

How Step 1: Ordering Plant raises outline agreement NSHS and the ordering plant agree upon an outline agreement for sale of installation/warranty services through this process. Step 2: Ordering Plant raises Purchase Order Ordering plant raises a installation/warranty service purchase order. For more information, refer to the Purchase Order Processing Business Procedure .

Step 3: Create service agreement Sales section creates a service agreement in the system by entering all required information into SAP system. Note, the system will require an entry for the agreement start date and end date. The value entered here can be amended again at a later stage when the actual installation date is known. System will do a credit checking. If the credit limit is exceeded, system will block the sales order for further transaction. Sales order will be printed for checking and approval process.





ALL O X


ALL O O O O O X X


~ $1000 O O X

$1001 ~ $5000 O O O O O X $5001 ~ O O O O O O X

Order Cancellation ~ $1000 O O X




$1001 ~ $10000 O O O O O X $10001 ~ O O O O O X X


ALL O O O O X


ALL O X


ALL O O X

O = Check X = Authorization When Admin section receives all relevant documents from the sales section, Admin section it to check and confirm the service agreement. If the service agreement order is rejected, all documents concerned are to return to the sales section.

Step 5: Create billing document Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document to ordering plant.

Step 6: Create invoice list An invoice list allows NS to create, at specified time intervals (as indicated in the service agreement), a list of billing invoices to send to the ordering plant. The billing invoices in the invoice list can be single or collective documents (collective invoices combine items from more than one delivery). In the case of NS it’s collective. NS uses this step when doing billing for warranty services.










Order plant raises outlineagreement

Start

CreateService Agreement

Check and ApproveService Agreement

Ordering plant raisespurchase order

End


Create Invoice List

InstallationOR

WarrantyWarrantyInstallation

NSHS

Ord

erin

g Pl

ant

Installation Done andVerified


engineers.

Post service hoursreferencing service contract

and item no.


Post travel expensesreferencing service contract

and item no.




Special Considerations Every month according to the billing plan, one billing document is generated to capture sales of warranty. Then a cumulated billing for the first six months of warranty will be generated. And another cumulated billing for the last six months of warranty will be generated at the end of warranty period. In another company, it will be captured as an invoice receipts every six months.

SAP Settings • Invoice List • Periodic billing • Sales Document Header Doc Type Description Comments ZSA Service Agreement • Sales Document Number Ranges Doc Type Number Ranges Comments ZSA ??? • Sales Copy Control • Billing Document Doc Type Description Comments ZSA Service Agreement

See Also a) Installation/Warranty Service Agreement b) Chargeable Service

Nissei Sangyo S35-On Call Service.doc– Business Procedure Overview


04/19/06 S35-On Call Service.doc Page: 1

On Call Service


What Services sold under this process are services not covered under the service agreement (please refer to Service Agreement BPP or Inter Company Service Agreement BPP), or, services where the warranty period has expired. The table below shows the conditions NSHS requires before doing a chargeable service. Sales Order Entry Type Done By Conditions Evidence Chargeable Service 1. NSHS Engineer

2. SHS Engineer


1. Original PO from customer 2. Service Claim to Customer 3. Service report acknowledge

by customer 1. Original PO from Customer


SHS 3. Service claim to Customer

Invoicing Type Done By Conditions Evidence Chargeable Service 1. NSHS Engineer

2. SHS Engineer





SHS 3. Service claim to Customer 4. Invoice from SHS

When When NSHS needs to provide services not covered under the service agreement (please refer to Service Agreement BPP or Inter Company Service Agreement BPP), or, services where the warranty period has expired.

How Step 1: Customer Request for Service Customer calls in for request of service

Step 2: Engineers Perform Service NSHS dispatches their engineers to the site to do the necessary services.

Step 3: Receive Service report from Engineers Once the service is completed, the engineers will submit a service report.




Step 4: Create Service Claims (quotation) Sales section creates service claims(quotation) in the system by entering all required information into SAP system. Quotation will be printed for checking and approval process.

Step 5: Customer Verifies and Approve Service Claim(quotation) The service claim created earlier on is sent to the customer for verification and approval.

Step 6: Customer raises PO Customer raises PO to NSHS upon approval of the service claim.

Step 7: Create Service Order Sales section creates service order in the system by entering all required information into SAP system. Service order will be printed for checking and approval process.

Step 8: Check and approve Service Order Transaction Amount Limit Authorization by




ALL O X


ALL O O O O O X X


~ $1000 O O X

$1001 ~ $5000 O O O O O X $5001 ~ O O O O O O X



ALL O O O O X


ALL O X


ALL O O X

O = Check X = Authorization When Admin section receives all relevant documents from the sales section, Admin section it to check and confirm the service order. If the service order is rejected, all documents concerned are to return to the sales section.




Step 9: Create billing document Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document referring to the service order.










Customer requestfor service

Start

Engineers performsservice

Receive Service Reportfrom service engineers

CreateService Claims (Quotation)

Customer verifies andapprove service claim

(quotation)

Customer raises PO

CreateService Order

Check and approveservice order

Create Billing document

Post service hoursreferencing service order

and item no.


Post travel expensesreferencing service order

and item no.

End

On Call Service


engineers.





SAP Settings • Sales Document Header Doc Type Description Comments ZSVC Service Order • Sales Document Number Ranges Doc Type Number Ranges Comments ZSVC Service Order • Sales Copy Control • Billing Document Doc Type Description Comments ZSVC Service

See Also a) Inter Company Installation/Warranty Service Agreement b) Installation/Warranty Service Agreement

Nissei Sangyo S36-Customer Own Inventory.doc – Business Procedure Overview


04/19/06 S36-Customer Own Inventory.doc Page: 1

Customer Own Inventory


What Currently this process applies to NSTH only. NSTH orders the goods from the supplier and the supplier sends the goods to NSTH premises. These goods that have been sold to the customer are not immediately delivered to the customer, instead, these goods, which now belong to the customer is kept in NSTH warehouse until the customer needs it. Though it still sits in NSTH warehouse, NSTH will continue to bill the customer but the customer will only make payment to NSTH according to the quantities they take delivery of. Non-valuated plant will be introduced in this process.

When When NS and the customer agree upon an outline agreement for sale of products through this process. There after, customer fulfills this contract by placing sales order to NS.



Step 3: Quotation Approve Customer is satisfied with the quotation. Go to step 4. If customer is not happy with the quotation the customer may request for the quotation to be revised. Step 4: Customer raises outline agreement NS and the customer agree upon an outline agreement for sale of products through this process.

Step 5: Create sales order Sales section creates sales order in the system by entering all required information into SAP system. System will do a credit checking. If the credit limit is exceeded, system will block the sales order for further transaction. Sales order will be printed for checking and approval process.



Admin Executive


Admin Manager

Managing Director







Step 7: Initiate Purchase Requisition (PR) Once Admin section has generated the sales order, the system will automatically initiate a purchase requisition in the system. Step 8: Raise Purchase Order (PO) Once the approval is obtained, purchase order is to be created. For more information, refer to the Purchase Order Processing Business Procedure . All printed official purchase order and sales confirmation (if any) must be signed by Sales Manager or his designated person. Sales section is to type in case mark(s) onto the purchase order if required, or sales confirmation if required. Step 9: Goods Receipt (GR) NS performs a goods receipt process when vendor delivers goods to the customer. For more information, refer to the Goods Receipt Business Procedure .

Step 10: Create billing document When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document referring to sales order. Step 11:Invoice Verification (IR) The sales administration posts the supplier invoice into the system. For more information, refer to the Invoice Verification Business Procedure .

Step 12: Create delivery document When customer take delivery of the goods, delivery note to customer will be generated referring to sales order.






Customer raise a PO




End

Create Delivery Document

Start

QuotationNeeded?

No


Yes

QuotationApprove?

Yes


No

Yes

No


Goods ReceiptGoods Receipt






Special Considerations Goods receipt will be done in non-valuated plant automatically.

SAP Settings • • Sales Document Header Doc Type Description Comments ZCOI Customer Owns

Inventory

• Sales Document Number Ranges Doc Type Number Ranges Comments ZCOI Customer Owns

Inventory

• Sales Copy Control • Delivery Document Doc Type Description Comments LF Standard Delivery • Delivery Document Number Ranges Doc Type Number Ranges Comments LF ??? • Delivery Copy Control • Billing Document Doc Type Description Comments F2 Invoice • Billing Document Number Ranges Doc Type Number Ranges Comments F2 ??? • Billing Copy Control

See Also a) Purchase Order Processing b) Goods Receipt c) Invoice Verification

Nissei Sangyo Overhaul/Scheduled Service – Business Procedure Overview


04/19/06 S37-Overhaul_Scheduled Service.doc Page: 1

Overhaul/Scheduled Service


What Services sold under this process are services not covered under the service agreement (please refer to Service Agreement BPP or Inter Company Service Agreement BPP), or, services where the warranty period has expired. The table below shows the conditions NSHS requires before doing a chargeable service. Sales Order Entry Type Done By Conditions Evidence Chargeable Service 1. NSHS Engineer

2. SHS Engineer





SHS 3. Service claim to Customer

Invoicing Type Done By Conditions Evidence Chargeable Service 1. NSHS Engineer

2. SHS Engineer





SHS 3. Service claim to Customer 4. Invoice from SHS

When When NSHS needs to provide services not covered under the service agreement (please refer to Service Agreement BPP or Inter Company Service Agreement BPP), or, services where the warranty period has expired.

How Step 1: Customer Request for Service Customer calls in for request of service

Step 2: Create Quotation Sales section creates quotation in the system by entering all required information into SAP system. Quotation will be printed for checking and approval process.

Step 3: Customer Approve Quotation If customer is happy and satisfied with the quotation, customer will proceed to raise PO to NSHS, else, customer may require NSHS to re-quote.




Step 4: Create Service Order Sales section creates service order in the system by entering all required information into SAP system. Service order will be printed for checking and approval process.





ALL O X


ALL O O O O O X X


~ $1000 O O X

$1001 ~ $5000 O O O O O X $5001 ~ O O O O O O X



ALL O O O O X


ALL O X


ALL O O X

O = Check X = Authorization When Admin section receives all relevant documents from the sales section, Admin section it to check and confirm the service order. If the service order is rejected, all documents concerned are to return to the sales section.

Step 6: Job complete, issue service report When the job is done, the service engineers will submit a service report to the customer.

Step 7: Customer acknowledges service report Customer verifies and acknowledges the service report submitted.

Step 8: Update Service Order There are times when the cost of the actual service done is different from the value stated in the service order. Therefore, before admin can bill the customer, Sales section would have to amend the service order and get it approved again.




Step 9: Create billing document Admin section is to ensure all relevant documents attached are checked against the request must be correct. When checking is completed, Admin creates billing document referring to the service order.










Customer requestfor service

Start

CreateQuotation

Customer raises PO

CreateService Order


Post service hoursreferencing service order

and item no.


Post travel expensesreferencing service order

and item no.

End

Overhaul/ScheduledService

Customerapprove quotation?

Yes

Job Complete, issueservice report to customer

Customer acknowledgesservice report

No

Need to requote?

Yes

No

UpdateService Order?

Create Billing document

No

UpdateService Order


Yes


engineers.





SAP Settings • Sales Document Header Doc Type Description Comments ZSVC Service Order • Sales Document Number Ranges Doc Type Number Ranges Comments ZSVC Service Order • Sales Copy Control • Billing Document Doc Type Description Comments ZSVC Service

See Also a) Inter Company Service Agreement b) Service Agreement