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SAP Cloud Reference Systems

Order-to-Cash (Sell-from-Stock)

Scenario Outline

© 2012 SAP AG. All rights reserved. 2

Content

Scenario Overview

Business Scenarios in a Reference System

Introduction

Typical Usage

Process Illustration of Typical Usage

Usage Example 1: Order-to-Cash (Sell-from-Stock)

Usage Example 2: Order-to-Cash with Packing

Usage Example 3: Order-to-Cash with Logistic Tasks

Usage Example 4: Order-to-Cash with Credit Limit Check and Down Payment

Usage Example 5: Order-to-Cash (Sell-from-Stock) with Third-Party Logistic

Usage Example 6: Customer Return with Ad-Hoc Inbound

Usage Example 7: Customer Return with In-house Repair

Scenario Overview Business Scenarios in a Reference System

Introduction

Typical Usage


Business Scenarios in a Reference System

In a Reference System, you can experience

how a business scenario meets specific

requirements of a typical midsize company.

The following slides outline and illustrate

the individual process steps of a business

scenario as it has been realized in the

model company Almika.

For hands-on experience, you can take

advantage of the business scenario document,

which guides you through the process with

detailed step-by-step instructions.


Introduction Order-to-Cash (Sell-from-Stock)

Scenario Introduction

The Order-to-Cash (Sell-from-Stock) scenario enables a company to

efficiently sell products or goods directly from stock to meet customer

demand. This scenario involves numerous business functions within

the enterprise - from sales and inventory management to delivery and

invoice creation, also the customer return process after delivered.

The integrated pricing functionality allows a greater pricing flexibility

and transparency. For example, the final price can be determined

based on certain variables, such as customer, product, and /or order

quantity. It also considers discounts, surcharges, freight charges

and/or taxes, which helps companies to optimize sales offers. Also the

Available-to-Promise (ATP) check ensures the accurate availability

and quantity of required goods - enabling companies to better keep

their customer commitments.

The customer return helps you to accurately track the return process

from receiving returned product to create credit memo or ship the

repaired product back to customer, to minimize the inconvenience to

both you and your customer.


Typical Usage (1 of 3) Order-to-Cash (Sell-from-Stock)

Order-to-Cash (Sell-from-Stock)

This scenario variant represents the simplest variant of the Order-to-

Cash (Sell-from-Stock) scenario. It starts with the creation of a sales

quote which is then transferred to a sales order. After the customer

demand is released, a goods issue is posted, the outbound delivery is

created and released and the delivery note is ready for printing. Then

a customer invoice is generated and payment is maintained. In this

scenario variant, the detailed logistics tasks such as picking and

shipping are performed outside the system, for example, in a

warehouse management system.

Order-to-Cash with Packing

This variant describes the outbound packaging function. It starts with

the creation of a customer order and treats packaging material as a

sales item to charge the customer. After the customer demand has

been released, a goods issue is posted and the outbound delivery is

created with the status “Not Released”. The products are then packed

using the appropriate packaging material and a packing list and the

labels are printed. The outbound delivery is released and the delivery

note can be printed. Then a customer invoice is generated.



Order-to-Cash with Logistic Tasks

It describes the entire process from quote to invoice. Other than in the previous

scenario variants, logistic tasks are managed by the system in detail. Instead of

just posting a goods issue, the warehouse manager creates and monitors

logistic tasks for picking and shipping in the Business ByDesign system.

Detailed task confirmations are also completed within the system so that the

entire outbound logistic process is transparent. In addition, this scenario variant

shows some details of the invoicing process, such as a duplicate of the invoices

with a “Duplicate” watermark and a correction invoice (Germany only).

Order-to-Cash with Credit Limit Check and Down Payment

It describes the entire process from the order to the invoice, which is similar to

the scenario variants mentioned above, however, this one provides a more

detailed view of the sales order process before the goods issue is posted. In this

specific example, the order volume exceeds the credit limit for a customer which

leads to an automatic delivery block for the order. Using Business Task

Management, the sales representative asks the sales manager for a

clarification. The sales manager reviews the payment history and asks the

customer for a down payment. After the down payment has been made, the

delivery block is removed and the normal order process continues. In the invoice

creation, the down payment is taken into account.



Order-to-Cash (Sell-from-Stock) with Third-Party Logistic

It describes the steps similar to the Order-to-Cash (Sell-from-Stock)

scenario. The warehouse management is outsourcing to a third-party

service provider. When a customer order comes in, a shipping request to

the provider has to be triggered (called 3PL Request). The new work

center Third Party Logistics handles all 3PL related warehousing

activities.

Customer Return with Ad-Hoc Inbound

It describes an unplanned customer return. A shipment arrives and is

entered as a customer return. The returned product is directly put on

stock without any detailed logistics tasks. Afterwards, a customer credit

memo is created.

Customer Return with In-house Repair

It describes the customer return which requests repair and return to

customer. The ownership of the returned product belongs to the

customer during repair period; you only manage the quantity in

warehouse.

Process Illustration Usage Example 1: Order-to-Cash (Sell-from-Stock)

Usage Example 2: Order-to-Cash with Packing

Usage Example 3: Order-to-Cash with Logistic Tasks

Usage Example 4: Order-to-Cash with Credit Limit Check and Down Payment

Usage Example 5: Order-to-Cash (Sell-from-Stock) with Third-Party Logistic

Usage Example 6: Customer Return with Ad-Hoc Inbound

Usage Example 7: Customer Return with In-house Repair


Order-to-Cash (Sell-from-Stock) Order-to-Cash (Sell-from-Stock) (1 of 2)

Create Sales Order

The supplier planner

reviews the customer

demand generated by

the sales order and

releases the demand.

The warehouse

manager posts the

goods issue and the

system automatically

creates an outbound

delivery.

Based on the sales

quote, the sales

representative creates

a sales order.

The sales

representative checks

the availability of the

products (ATP:

available-to-promise) to

confirm sufficient stock

on the delivery date.

Sales Orders

Sales Order

Sales Representative Supplier Planner Warehouse Manager

Outbound Logistics

Control

Outbound Logistics

Process

Role

Work center

Form

Financial

Posting

Release Customer

Demand Post Goods Issue

Journal Entry (Goods

Issue for Customer)

The warehouse

manager releases the

outbound delivery

created during the

goods issue and is able

to print the delivery

note.

The accountant checks

the financial postings

which were created

during the process.

Delivery Note

Warehouse Manager Accountant

Outbound Logistics General Ledger

Release Outbound

Delivery Review Journal Entry


Order-to-Cash (Sell-from-Stock) Order-to-Cash (Sell-from-Stock) (2 of 2)

Process

Role

Work center

Form

Financial

Posting

Based on the delivered

sales order, the

accountant creates the

customer invoice.

The customer invoice

document is printed and

sent to the customer.

It is possible to check

the order status at any

point in time using the

document flow.

Customer Invoice

Customer Invoice

Accountant

Customer Invoicing

Create Customer

Invoice

The sales

representative is able

to check the sales order

status at any point in

time using the

document flow.

Sales Representative

Sales Orders

Check Status in Sales

Orders

Related Scenario: • Cash and Liquidity

Management (Processing

Receivables and Payments)


Order-to-Cash (Sell-from-Stock) Order-to-Cash with Packing (1 of 2)

Create Sales Order



demand generated by

the sales order and


The warehouse

manager posts the

goods issue and the


creates the outbound

delivery.

The warehouse

manager selects the

outbound delivery with

the status “Not

Released”, which has

been created during the

goods posting.

The warehouse

manager selects

logistics units to pack

this outbound delivery

and is able to print the

packing list and the

related labels.

After the packing, the

warehouse manager

releases the outbound

delivery and is able to

print the delivery note.

Based on a telephone

call with the customer,

the sales representative

creates a sales order.

The sales



products (ATP:

available-to-promise) to


on the delivery date.

Sales Orders

Packing List

Packing Label

Sales Order

Sales Representative Supplier Planner Warehouse Manager Warehouse Manager Warehouse Manager

Outbound Logistics

Control

Outbound Logistics Outbound Logistics Outbound Logistics

Process

Role

Work center

Form

Financial

Posting

Release Customer

Demand Post Goods Issue

Packing for picked

goods

Release Outbound

Delivery


Issue for Customer)

Delivery Note


Order-to-Cash (Sell-from-Stock) Order-to-Cash with Packing (2 of 2)

Create Customer

Invoice


sales order, the


customer invoice.







document flow.

Customer Invoicing

Accountant

Process

Role

Work center

Form

Financial

Posting




Customer Invoice

Customer Invoice


Order-to-Cash (Sell-from-Stock) Order-to-Cash with Logistic Tasks (1 of 2)

Create Sales Quote

If the approval limit was

maintained in fine-

tuning and the sales

quote value exceeded

this limit, then approval

is required.

After the customer

placed the order, the

sales representative

creates a sales order

directly from the sales

quote.

The sales representative

performs another

availability check to


on the delivery date and

adds this information to

the sales order.

The supply planner


demand generated by

the sales order and

releases the customer

demand.

Based on the customer

demand, the

warehouse manager

creates a request for

the warehouse.

The respective

warehouse tasks for

picking and shipping

are created

automatically.

The warehouse operator

confirms the execution

of the picking and

shipping tasks and the


triggers an outbound

delivery during the

confirmation of the last

task.


creates a quote for a

customer.


checks the availability of

the products (ATP:

available-to-promise) for

the requested delivery

date and maintains the

targeted delivery date for

the printing of the sales

quote and all follow-up

documents.

New Business

Approvals Sales Order Sales Quote


Issue for Customer)

Sales Representative Sales Manager Sales Representative Supply Planner Warehouse Manager Warehouse Operator

Managing My Area Sales Orders Outbound Logistics

Control

Outbound Logistics Execution

Process

Role

Work center

Form

Financial

Posting

Approve Sales Quote Create Sales Order Release Customer

Demand

Create Warehouse

Request

Confirm Picking and

Shipping Task


Order-to-Cash (Sell-from-Stock) Order-to-Cash with Logistic Tasks (2 of 2)

Release Outbound

Delivery/Review Advanced

Shipping Notification

The warehouse

manager creates a

freight list, assigns the

appropriate freight

forwarder and prints the

bill of lading.


sales order, the


customer invoice.

If the customer has

asked for a duplicate

copy of the invoice, the

accountant creates a

watermark copy and

sends it to the customer.

The customer demands

a discount, previously

agreed in a phone call

which has not been

taken into account in the

invoice.


creates a correction

invoice based on the

original invoice to

include the discount.

This step is specific

for Germany only.

The warehouse manager


delivery, reviews its

completeness and prints

the delivery note, which

holds the additional

customer information

added by the sales

representative.

An advanced shipping

notification is sent to the

customer via e-mail.

Outbound Logistics

Bill of Lading Customer Invoice Delivery Note

Advanced Shipping

Notification

Customer Invoice

Warehouse Manager Warehouse Manager Accountant Sales Representative

Outbound Logistics Customer Invoicing Customer Invoicing

Process

Role

Work center

Form

Financial

Posting

Create Freight List Create Customer

Invoice

Create Correction

Invoice (Germany

only)

Customer Invoice

Credit Memo





Order-to-Cash (Sell-from-Stock) Order-to-Cash with Credit Limit Check

and Down Payment (1 of 2)

Create Sales Quote

Because of the credit

limit warning, the sales

representative would like

to clarify the issue along

with his/her manager.

He/she creates a

clarification request

asking for advice and

references regarding the

respective sales order.


is proposing a down

payment.

The sales manager

receives a clarification

request, checks the

customer’s payment

behavior and orders

statistics for decision

making.

Based on the figures

available, he replies the

clarification request that

the order should be

processed, but with a

down payment.

The sales

representative reads

the reply and closes the

clarification request.


creates the down

payment request and

informs the customer

about the down

payment.

Based on a telephone

call with the customer,

the sales representative

creates a sales order.

As the order volume

exceeds the credit limit

for this customer, a

warning is presented

and a delivery block is

set automatically for this

sales order.

Sales Orders

Down Payment

Request

Sales Order

Sales Representative Sales Representative Sales Manager Sales Representative Sales Representative

Sales Orders Home Home Customer Invoicing

Process

Role

Work center

Form

Financial

Posting

Create Clarification

Request

Review Customer Payment

Behavior and Reply

Clarification Request

Complete Clarification

Request Create Down Payment

Request


Order-to-Cash (Sell-from-Stock) Order-to-Cash with Credit Limit Check

and Down Payment (2 of 2)

Receive Down

Payment

After the down payment

has been posted, the

sales representative

removes the delivery

block so that the order

can be processed.

The supply planner


demand generated by

the sales order and


The warehouse manager

posts the goods issue

and releases the

outbound delivery which

will automatically be

generated by the system.

The customer sends the

down payment via

check.

The accountant posts

the incoming payment to

the customer account.

Receivables

Delivery Note

Accountant Sales Representative Supply Planner Warehouse Manager

Sales Orders Outbound Logistics

Control

Outbound Logistics

Process

Role

Work center

Form

Financial

Posting

Remove Delivery

Block from Sales

Order

Release Customer

Demand

Post Goods Issue and

Release Outbound

Delivery

Cash Receipt Journal Entry (Goods

Issue for Customer)

Create Customer

Invoice


sales order, the


customer invoice with

reference to the down

payment.

The down payment is

deducted automatically.

The account monitor

shows only the open

residual amount which

remains to be paid.

Customer Invoicing

Accountant

Customer Invoice

Customer Invoice



Receivables and

Payments)


Order-to-Cash (Sell-from-Stock) Order-to-Cash with Third-Party Logistic

Create Sales Order



demand generated by

the sales order and


The warehouse

manager creates a 3PL

request to inform the

third-party managed

warehouse to be ready

for shipping. Then, the

system will send it to

the third-party company

via B2B

communication.

Based on the sales

quote, the sales


a sales order.

The sales

representative decides

to deliver products from

a third-party managed

warehouse, and checks


products to confirm

sufficient stock on the

delivery date.

Sales Orders

Sales Order

Sales Representative Supplier Planner Warehouse Manager

Outbound Logistics

Control

Third Party Logistics

Process

Role

Work center

Form

Financial

Posting

Release Customer

Demand Create 3PL Request

The warehouse

manager views the

communication status

of the business

document Standard

Outbound 3PL

Request.

Warehouse Manager


Check Business

Communication

Monitor

3PL Request

Based on the 3PL

request, the warehouse

manager creates and


delivery.

Warehouse Manager

Release Outbound

Delivery

Delivery Note



sales order, the


customer invoice.







document flow.

Customer Invoice

Customer Invoice

Accountant

Customer Invoicing

Create Customer

Invoice


Order-to-Cash (Sell-from-Stock) Customer Return with Ad-Hoc Inbound

Create Customer

Return Notification

The warehouse

manager posts the

goods receipt and

confirms the receipt of

the material in the

storage area with

restricted use.

The sales


and releases the return.

The sales


a customer credit

memo.

The warehouse

manager enters the

receipt of an unplanned

customer return.

The customer

complains about

missing parts that

prevent the correct

usage of the product.

Inbound Logistics

Customer Returns

Confirmation

Credit Memo

Customer Return

Warehouse Manager Warehouse Manager Sales Representative Sales Representative

Inbound Logistics Sales Orders Customer Invoicing

Process

Role

Work center

Form

Financial

Posting

Post

Goods Receipt

Check and Release

Customer Return

Create Customer

Credit Memo




Customer Credit Memo

This is an optional step.


Order-to-Cash (Sell-from-Stock) Customer Return with In-house Repair

Create Customer

Return Notification

The warehouse

manager posts the

goods receipt and the

stock can be tracked by

the generated inbound

delivery ID and the

owner ID.

After repair and once

the product is ready to

ship, the sales


and releases the return

and requests the

shipping. The system

allows to request an

outbound delivery for

each line item

individually.

Based on the created

outbound delivery

proposal, the repaired

product is shipped back

to the customer; the

outbound delivery is

released at the same

time.

The warehouse

manager enters the

receipt of an unplanned

customer return.

The customer wants

the product to be

repaired and sent back.

The product ownership

belongs to customer

during the repair period.

Inbound Logistics

Customer Returns

Confirmation

Delivery Note

Customer Return

Delivery Proposal

(Outbound)

Warehouse Manager Warehouse Manager Sales Representative Warehouse Manager

Inbound Logistics Sales Orders Outbound Logistics

Process

Role

Work center

Form

Financial

Posting

Post

Goods Receipt

Release Customer

Return and Request

Outbound Delivery

Post Goods Issue

Related Scenario: • Order-to-Cash

(Standardized

Services)

Confirmation Journal


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SAP Cloud Reference Systems - · PDF fileSAP Cloud Reference Systems Order-to-Cash (Sell-from-Stock) ... Customer Return with In-house Repair . ... Order-to-Cash