Prof Kunal Ghosh Notes

8/8/2019 Prof Kunal Ghosh Notes

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STANDARD ORDER HANDLING~Sales orders can 'result from quotations.~ If an order does refer to a quotation,the quotation is binding if the validityperiod and agreements are met.

~Standard sales orders carry .out normalsales transactions for a customer whoorders goods.~Processing of standard sales order resultin carrying out the following tasks:

Prlcinq Availability check Transfer requirements to materials

Planning Shipping point & route determination


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Determine Business Partner. ,

Standard Order Processing can begin whenan order is placed without connection to aQuotation.Customer must be identified first and thenthe order is to be entered in the system.Standard Order Processing is also linked toSales Activity Processing and CustomerQuotation Processing.Sales Activity Processing link triggers theStandard Order Processing.when an order icreated from a sales contact.Customer Quotation Processing Link promptsStandard Order Processing with a validquotation or placing of an order that stemsfrom a Quotation.Following Tasks occur after the entry oforder in the System.


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-+Consult controlling to find out howmuch it would cost to make the productand quote it.

Next the Order must be checked for Other Prices or Taxes(triggers "carry out check control") Batch Relevance(triggers"Check Warehouse" )

Check Warehouse Leads To theFollowing Possible Events . ITEM IS A MAKE-TO-ORDER-PRODUCT

or-+ If the product is already in the

warehouse, then determine a deliverydate.


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ITEM IS A MATERIAL THAT CAN BECONFIGURED~Find out whether variants of theproducts are available. Thendetermine delivery date of theproduct .

ITEM IS IN STOCKtriggers the tasks: Determine Shipping Point Determine Route of order Determine and schedule deliverydates~ If the item is only partially' available,first see if partial delivery isacceptable to customer.

Acceptability of partial delivery or fuavailability of the items triggers thetask


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Tranfer order to sold-to-parties Change or edit the blockedorder Monitor the order Cancel the order

f the order is accepted, the next step is todit text (i.e. make changes) in the system.

f the order is blocked, it must first go backo credit control before the task, edit text canake place.

f order is refused, the customer must be toldnd the items on order cancelled

When orders are accepted for some reason,locked, the next step is to create a standard

Four possible actions could follow :

the blocked order is edited and finally


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*demand management (PP)or

*credit control (FI)

-ITEM IS NOT STOCKAfter all the order tasks in the chain arecompleted then the task "edit order" isinitiated.

Once they are created the sales requirementither prompt

fter credit control one of the three tasks is

Accept Order Block Order Refuse order


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DELIVERY PROCESSING

~ STANDARD ORDER PROCESSINGprompts DELIVERY PROCESSINGonce an order is released.Task No.1: Monitor the Delivery Date.

Two events may follow: Delivery date takes place Delivery date does not take place

~ If Delivery Date takes place, then the taskis to choose the kind of delivery among Create without reference to an

order. Create from individual sales order Create from delivery-due list Create from stock transport order


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credit requirements are metor

delivery can't be created

~ The first choice leads to the task'determine delivery items'.The second choic e leads to 'opendelivery from sales order' .

The third choice leads to 'edit delivery duelist' .

The fourth choice leads to 'open from stocktransport order' .

~ All these tasks lead to 'open delivery'Once opened the next task is "carry outcredit control". (connected to finance).

~ Net outcome may be


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+determine serial numbers of deliveryitem.

~ If credit control is successful series oftasks that follow are+determine or transfer delivery route

+check delivery items~ Check delivery item triggers one of twoevents+ Item is not in stock

or+ Item is in stock

~ If the item is in stock the next task is todetermine the picking location. This leadsto checking to see if the items is handledin batches or not.

o .


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Item is handled in batches~ Three possible events follow:

Item is not handled in batches Warehouse managementdetermines delivery batch.

~ One task follows picking delivery items :pack delivery items.~ Once done, delivery information is editedand then a delivery is created.


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+Goods issue processing for stockmaterial (MM)

~ This task triggers seven possible outcomesin (SD) or (MM)+Create or transmit shipping papers (SD)+Check to see if billing is relevant (SD)

+Batch goods issue processing (MM)+Create Stock transport order (SD)+Release scheduling agreement (SD)

~ The second , third , fourth events all lead tothe task of billing in sales and distribution.


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Any item can be transferred to a customerlocation as consigned stock where it istracked with a "special stock'tdesignationassigned to each customer.

CUSTOMER CONSIGNMENT STOCKHANDLING.

~ Customer-consignment goods are itemsstored on the customer's premises foreventual use and / or sale but still owned bythe supplier.

~ In the R/3 system, inventoried items areidentified in the material master file.

~ Since the same item may be sent to severalcustomers, it is possible to have multipleconsignment stocks of the same material-onefor each customer.

~ For each customer-specific stock, a movingaverage price is maintained. This price isused for valuing each issue (sale) to that


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Customers may request the company to pickup unwanted or excess goods in theconsigned inventory. This request results inthe processing of a pick up order with thegoods then returned to standard companyinventory .

Customers notify the company when goodshave been issued from the consignmentinventory, and a consignment issuestransaction is processesed. Invoices areprocessed and sent to customers. Theappropriate cash management, accountsreceivable and profitability systems areupdated.

Again in the case of returned goods, fordamage or other reasons, the systemmanages the receipt of those items andprocesses a credit memo.


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~ When goods leave the plant or warehouse,stock is transferred to a customer"special stock" inventory location.

~ Customer notify the company when goodshave been issued from, the consignmentinventory.

~ A consignment fill-up order carries outpricing , initiates credit checking , anddetermines material availability.

~ The sales order process sends requirementsto manufacturing.

~ This scenario integrates order handlingactivities with the workflow of down streamdelivery and logistics operations.


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CASH ORDER HANDLING

Over the Counter Scenario.Customer arrives at the company to buy goodsfor cash.A special order type, 'Cash Order'is used torecord the transaction.Total amount of cash received from the customeris entered on the order along with the desiredproducts.Requested goods are issued from inventory andgiven to customer.Copy of the order is given to customer as a result.Invoice is printed and mailed to customer at alater date.If customers return damaged goods, the systemprocesses the receipt of these items and producesa credit memo.Optionally, a subsequent free-of-charge deliverycan be processed to replace the damaged goods.


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RUSH ORDER HANDLING

~ Delivery documents and sales order can becreated at the same time.

~ All the sales and shipping functions are carriedout for both documents at the same time.

)- Begins with recording sales activities withcustomers. Phone call , meetings and presentations Direct mail campaigns can be planned

These activities result in customer inquiry whichare recorded in the system.

A quotation, valid for a specified time period, iscreated on the basis of this enquiry.~ Upon customer acceptance of the quotation, anorder is processed.

~ Order can also be processed directly from acustomer without a quotation.

~ If the customer requires immediate delivery, aspecial type of order, a "Rush Order"is used toprocessthe transaction.

~ Rush orders carry out pricing and perform creditchecking.


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- Sales order function in R/3 uses a Configuratorto select configured products as well as a"Conditionsprogram to manage complex

.process scenario.- The system creates the sales order documentand the delivery document at the same time, andthe workflow associated with delivery can beginimmediately.- Delivery and logistics workflow includestransportation planning, as well as picking,packing and shipping of products.When goods leave the plant or warehouse, stockand value adjustments are made in the materialsmanagement system.Invoices are processed and sent to customers andthe appropriate cash management, accountsreceivable, and profitability systems are updated.In case of returned goods, for damage or otherreasons, the system manage the receipt of theseitems and processes a credit memo.

Documents

Prof Kunal Ghosh Notes