Sales Order Management

Sales Order Management

SAP Best Practices for Retail

© 2011 SAP AG. All rights reserved. 2

Purpose, Benefits, and Key Process Steps

Purpose Sales Order Management describes a Business-to-Business (B2B) scenario: you sell to your known customer(s)

(with master data record), who in turn sell(s) the merchandise to their customers (wholesale function). In addition to sales order processing functions, this scenario also includes the following process steps: credit limit check and availability check, consignment, backorder processing, customer contract, product catalog, online store, customer billing document, payment handling, and subsequent settlement.

Benefits The entire document chain - presales phase, order, follow-up actions - forms a document flow or history. The

flow of data from one document to another reduces manual processing and facilitates problem solving. Backorder fulfillment from returns stock allows you to manage how returns are to be allocated for backorders and

stock transfers: If the article is unused and can be readily shipped again, then it is quicker and more cost-effective to use it to fill sales backorders or stock transfer orders rather than to move it back to unrestricted-use stock and for subsequent picking and reshipment.

Key Process Steps Creation of Standard Orders, Rush Orders, Third-Party Orders Backorder Processing and Rescheduling Creation of Customer Billing Documents Payment Handling Customer Returns Handling Subsequent Settlement Customer Consignment Handling Customer Contract Handling Product Catalog Handling


Required SAP Applications and Company Roles

Required SAP Applications SAP SAP enhancement package 3 for SAP ERP 6.0

Company Roles Retail Sales Person Retail Store Manager Retail Warehouse Clerk Accounts Payable Assistant Accounts Receivable Assistant


Process Flow DiagramSales Order / Backorder Processing and Rescheduling

Ret

ail

War

ehou

se

Cle

rkR

etai

l Sto

re

Man

ager

Ret

ail S

ales

Pe

rson Standard Order/

Rush Order/ Third Party

Order

Analyze Sales Document

Rescheduling

Backorder Processing and Rescheduling

Monitor the Returns Stock

after Distribution

Dirstibute Returns Stock to Backorders

Reschedule Sales

Documents

Credit Limit Check

Availability Check

Run CATT Monitor the Returns Stock


Sales Order: Alternatives

A Sales order is a customer request to the company for the delivery of goods or services at a certain time. The request is received by a sales area, which is then responsible for fulfilling the order.

Standard order:Merchandise will be collected or rather delivered and invoiced afterwards.

Rush order:Merchandise will be collected or rather delivered immediately and invoiced afterwards.

Third-party order:Merchandise will be delivered directly by the vendor to thecustomer. The ordering enterprise invoices to the customer

Cash sales order:Merchandise will be collected and payed immediately.


Options in the order creation - 1

Cross Selling: due to the entered article additional related articles aresuggested

Dynamic Product Proposal: due to the entered customer the articles (History, PP...) connected with this customer number are suggested


Options in the order creation - 2

The credit limit check is a check, whether a customer has already covered his credit limitand which consequences are connectedwith it (warning, fault, delivery block). This check can be carried out in every sales document.

The delivery of a product to a delivery date is only possible if this product is available for all processing steps to be carried out before the delivery.

To guarantee this the availability check is used in the order.


Backorder Processing

Backorder processing with a selective list for sales

documents

Select and process backorders for a particular

article

Manual processingAssignment of the ATP-

quantities

Check the returns stocks on goods not damaged and not used

Listing of relevant requirements for sales documents


Rescheduling

Selection of the open sales document Positions of the selected article

and availability check

Analysis of the last rescheduling run


“Customer billing document” is an umbrella term for invoices, credit memos, debit memos, pro-forma invoices, and cancellation documents.

Billing represents the final processing stage for a business transaction in Sales and Distribution

Customer Billing Document


Process Flow DiagramCustomer Billing Document

Ret

ail S

ales

Per

son

Generate Preceeding

Documents via ECATT

Create Billing Documnet Online

on the basis of the Outbound

Delivery

Incoming Payment in FI

Generate Collective billing Document in the

Background

Alternative 1

Alternative 2


The milestone billing in the billing plan is used for the payment processing of a deposit.

Milestone billing means, that the total value, which should be invoiced, is divided in several partial amounts in the billing plan (percentage / absolute), they are to be paid at certain dates.

A milestone billing is a schedule with particular billing dates.

Payment Handling


Process Flow DiagramPayment Handling

Acc

ount

s R

ecei

vabl

e A

ssis

tant

Acc

ount

s Pa

yabl

e A

ssis

tant

Ret

ail S

ales

Per

son

Down Payment Agreement in

the Sales Oder

Print the Final Billing

Document (Screen)

Incomimg Payment for the Down Payment Request in FI

Clear the Payment that has already

been made in FI

Down Payment request in SD

Print the Down Payment Request (Screen)

Final Billing with Down Payment Clearing in SD)

Incomimg Payment in FI


There are various reasons for returning goods:- The goods are damaged in some way so that they cannot

be transferred back into normal stock, but have to be returned to the vendor.

- The customer did not like the goods and wants to replace them. The goods can, however, be reused either fully or partially.

- The customer did not like the goods and wants their money back or a credit memo. The goods can be reused either fully or partially.

When the returned goods are received from the customer,they are initially posted into blocked returns stock. Thereturned goods are checked and a decision is made as to

what to do with them, for example: breakage stock (returnedto vendor or destroyed), staff sales, transfer to normal stock/distribution to backorders.

Customer Return


Process Flow DiagramCustomer Return

Ret

ail S

ales

Per

son

Preparations

Execution

Transfer from Rerurns Stock

to Blocked Stock

Stock Control

Goods Issue for the Free of

Charge Subsequent

Delivery

Create a Delivery for the Free of Charge

Subsequent Delivery

Create a Returns Delivery

Full Transfer Postingto

Unrestricted-Use Stcok

Stock Control

Release the Returns for Subsequent Processing

Create a Return


Transfer from Blocked Stock

to Return Delivery

Storage location

Check the Document Flow

Create a Free of Charge

Subsequent Delivery

Remove the Billing Block

Issue the Credit Memo

Create Returns Order

Post the Goods Receipt for the

Returns

Post the Goods receipt for the

Returned Goods


Create a Return with Free of

Charge Subsequent

Delivery

Stock Display

Create Credit Memo

Release to Accounting

Create a Returns Delivery

Post the Returns Delivery


Process of Returns Handling

Finance: Logistics:

Input of customer returnsCredit note or

Subsequent delivery free of charge

Stock

Stock correction (Input to blocked stock)

Following processes

Log. invoice verification

Input of customer returns

Goods receipt

Creation of customer returns order

Stock transfer posting

into unrestricted stock or

Dispatching to backorders

Transfer posting to returns stock

Following processes

Return delivery to vendor

Invoice verification


Arrival of the return goods

Posting in blocked stock

Goods receipt posting


Evaluation of the return goods

Control of the goods

Decision of further use

Transfer back tounrestricted stock

Transfer toreturns stock


Additional Use I – Unrestricted Stock

Tranfer back to unrestricted stock

Allocate to open orders


Additional Use II – Returns Stock

Transfer back to returns stock

Disposal


Subsequent process

Return delivery to vendor


As part of the subsequent settlement procedure, you can offer a reduced price, for example, when a customer buys certain quantities of particular articles together, uses a customer card for payment, or reaches or exceeds the sales volume in a period that has been agreed upon in advance.

Subsequent Settlement


Process Flow DiagramSubsequent Settlement

Ret

ail S

ales

Per

son

8.3Rebate

Processing (in SD)

8Subsequent Settlement

8.3.3Update the

Sales Volume

8.3.2Create Rebate

Agreement

8.3.4Generate

‚New‘ Sales Volume

8.3.1.1Settlemenr of

the Agreement(s)

8.3.1Display the Status of Rebate

Agreement

8.3.4.1Create Sales

Order

8.3.5Display Sales Volume Data

8.3.4.2.3Document

Flow

8.3.4.3Create Billing

Document8.3.4.2.1

Create Delivery

8.3.4.2.2Create Transfer

Order and Corfirm with GI

8.3.4.2Outbound Delivery

8.3.6Display Drill

Downs

8.3.8Release

Agreement for Settlement

8.3.7Carry out partcial

Settlement

8.3.7.1Release Credit Memo Request for the Partial

Rebate Settlement

8.3.7.2Bill Credit

Memo Request for the Partial

rebate Settlement

8.3.9Create Final Settlement

8.3.9.2Bill Rebate Credit Memo Request for the Final Settlement

8.3.9.1Release Rebate Credit Memo Request for the Final Settlement

8.3.10Display Payment History


Consignment goods are goods that are stored at a customer location but that are still owned by your company. From a planning point of view this stock is no longer available and is managed independently.

The customer is not obliged to pay for these goods until they remove them from consignment stock. Otherwise, the customer can usually return consignment goods that are not required.

Consignment processing is advantageous to both parties. 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.

Customer Consignment


Process Flow DiagramCustomer Consignment

Ret

ail S

ales

Per

son

Reduce the Consignment

Stock at Customer

Alternative 1:Consignment Issue

Create Delivery

Alternative 2:Consignment Pick-Up

Optional Process after

Consignment Issue:

Consignment Returns

Billing or Credit Memo for the Consignment

Return Created

Remove the Billing Block Goods Receipt

Billing Goods Issue

Consignment Fill-Up

Create and Corfirm

Transfer OrderDocument Flow Consignment

Stock


Customer contracts are outline customer agreements that display when goods are purchased within a certain time period.

Contracts are concluded with the customer so that the purchasing/production and sale of

goods can be estimated better, which in turn enables better conditions to be negotiated.

Customer Contract


Process Flow DiagramCustomer Contract

Ret

ail S

ales

Per

son

Create Contract release Order

for Value Contract

Create Contract release Order for Quantity

ContractValue ContractQuantity

Contract


The product catalog is the basis for printed and electronic catalogs. The catalog is maintained

in the SAP ERP System and can be transported to external systems and processed as

templates for print catalogs or electronic catalogs (CD-ROM or Internet). IDocs and

BAPIs are available for exporting the catalog data.

Product Catalog


Process Flow DiagramProduct Catalog

Ret

ail S

ales

Per

son

Create a Product Catalog

Create Basic Data

Maintain Documents and

Texts in the Article Master

Add Articles Layout Areas

Manually

Pricing in the Product Catalog

Create a Layout

Hierarchy Manually

Create Lower-Level Layout

Areas

Determine the Pricing

Procedure

Create the Layout

Hierarchy of the Product Catalog

Customer Pricing

Procedure

Maintain Articles

Maintain Layout Areas

Maintain Texts and Documents for Articles and Layout Areas

Alternative: Create Layout

Hierarchy Automatically

Link between Promotion and

Product CatalogPromotional Sales Prices

Create Document Info

Records

Add Articles Layout Areas

Using the Default Article

Create a Promotion

Product Catalog

Create layout Hierarchy

Create Basic Data


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