Sd4 Sales Order Processing

Right Solution, Right Time, Right PriceSales Order Processing

Agenda

General Information for Sales Order ProcessingSales InquiryQuotationsSales OrdersInventory/Availability ReportingConsignment OrdersReports/ListsComplaints ProcessingPro-Forma Invoice CreationQuestions / Review

I. General Information for Sales Order Processing

Organizational Elements Quick ReviewGeneralMotion(02)MachineTool(03)ServiceHouseAccounts(05)Columbus(06)Switch(07)DISTRIBUTIONCHANNELDIVISIONPARTS SALESSERVICE ORDERREPAIR ORDERSALESORGANIZATIONSales AreaPARTS SALESSERVICE ORDERREPAIR ORDERPARTS SALESSERVICE ORDERREPAIR ORDERPARTS SALESSERVICE ORDERREPAIR ORDERPARTS SALESSERVICE ORDERREPAIR ORDERPARTS SALESSERVICE ORDERREPAIR ORDERPARTS SALESSERVICE ORDERREPAIR ORDERSPECIAL REPORTTOTAL PARTS SALESTOTAL SERVICE ORDERSTOTAL REPAIR ORDERS SalesOrganization(0010 Americas)DistributorDistributionChannel(02)DirectDistributionChannel(01)

Business Processes CycleQuotationPre-Sales ActivitiesSales Order ProcessingSales Order ProcessingInventory SourcingInventory SourcingDeliveryDeliveryBillingBillingPaymentPaymentInvoice

During sales order processing, the system carries out basic functions, such as:

Determines PricingDecides Delivery RequirementsDecides Requirements for creating invoicesUpdates Document FlowUpdates Sales reportingCarries out availability checkBasic Functions Within Sales Order Processing

Sales Documents

There are four distinct groups of sales documents:

Pre-Sales Activity: Inquiries, and Quotations Sales orders Complaints, encompassing Subsequent Delivery Free of Charge order, Credit /Debit memo requests and Return Orders.

Sales Documents

There are three distinct control elements within a sales documents:Order type controls:Number range for the orderIncompletion procedure at the headerOutput determination procedureItem number incrementDocument pricing procedure

Item category controls:Should pricing be carried outIs item to be invoicedWhich fields appear on the incompletion logPartner determination

Schedule item category controls:The correct A/R account cost will hitEspecially important in internal order processing

Sales Documents

From the sales document, you can create and process deliveries and billing documents.

In addition, some sales documents, such as rush orders, automatically trigger the creation of delivery documents.

Sales Documents

All sales documents have basically the same structure.

They are made up of:Header Line Item Schedule Line

How Sales Documents are Structured Sales DocumentHeaderItem 1Schedule line 1Item 2Schedule line 1Schedule line 1Schedule line 1

Header data

The general data that is valid for the entire document is recorded in the document header. For example,

Number of the sold-to, ship-to partyPurchase OrderSales Area DataPayment TermsPricing elements for the entire documentOrder Status Industry (add. data Acustomer group 1)Application (add. data Acustomer group 2)

Sales DocumentHeaderItem 1Schedule line 1Item 2Schedule line 1Schedule line 1Schedule line 1Sold-to party: 1000006 Req. Delivery Date: 7/28/00Ship-to party: 1000006

Currency: USD

Item data

Whereas data in the document header applies to all items in the document, some data applies only to specific items or can be overridden by the item. This data is stored at item level and includes the following:

Material number and dataFirst delivery dateReason for rejectionPartner determination (an alternative ship-to party or forwarding agent (carrier) can be defined for a particular item)Item level textItem level statusPlant and storage location specificationsPricing conditions for the individual itemsItem Category

Sales DocumentHeaderItem 1Item 2

Schedule line data

The schedule line contains all the data that is needed for a delivery.

For example, a customer orders 20 units of a particular material which you enter as one item in the sales order. However, you can only deliver 10 pieces now and the remaining 10 pieces next month so you will confirm two delivery dates. The data for these deliveries (dates, confirmed quantities) are stored in two separate schedule lines. (Automatic line splits)

In sales documents where delivery data is not relevant, for example, contracts, credit and debit memo requests, the system does not create any schedule lines.

Data recorded in the schedule lines includes the:Schedule line quantityDelivery dateConfirmed quantity

Sales DocumentHeaderItem 1Schedule line 1Item 2Schedule line 1Schedule line 1Schedule line 1

Data From Master Records When you create a sales document without referring to a preceding document, the system copies the following data from the master records:

Data about the sold-to party and other partners from the customer master records

Item data from the material master record

Data from any relevant customer-material information records (customer specific part numbers)

Data from Preceding Documents If you create a sales document with reference to a preceding document, the system copies nearly all the data from the preceding document, depending on copy control setup for document combinations being referenced.

The data in the preceding document originally comes from the customer and material master records.

Because the data is copied from the preceding documents into the sales document, any changes that have been made to the master data records since the preceding document was created are not included in the sales document.

If, when you create with reference, you add another item to the document that was not in the preceding document, the system determines the data for the new item from the master records, such as the material master or info record.

What is the difference between an Inquiry and a Quotation?

Inquiry Non-Binding AgreementFor example, a customer inquires whether we have a certain product in our warehouse, how much it will cost, or whether the product will be available for a certain date. The inquiry will not be sent to the customer.

Quotation Binding Agreement from A quotation presents the customer with a legally binding offer for product or service within certain fixed conditions.

Reporting and Analysis in SAP R/3Standard ReportingLists documents and master dataProvides analysis through sorting and totalsDisplays details

List ProcessingLists selected documentsAllows you to branch to documents and return to listHelps organize work

Sales Document IconsSales and DistributionThese Icons appear on most Sales DocumentsGeneral IconsStatus OverviewDisplay Sales SummaryDisplay Sold-to Party

Header Output ViewReject Document

List Sales OrdersDisplay Item Detail

Create Item

Delete Item

Item to topDisplay Document Flow

Check Item AvailabilityPage Down

New SessionView AvailabilityItem Conditions

Sales Order Processing What 3 organizational elements make up the Sales Area?Name the 2 distribution channels?Name the 7 different division?Name 2 things order type controls?

II. Sales Inquiries

Inquiry Used to store pre-sales data.There are a wide range of functions defined for managing and monitoring these documents.Information gained from these documents can be used to gauge different market, sales, inventory trends.Each document has a validity date.

Creating a Sales Inquiry

Menu Path Logistics >> Sales and Distribution >> Sales >> Inquiry >> VA11 - Create

Transaction Code: VA11

Step 1 Initial Screen

Enter IN for Inquiry Type


Enter IN for Inquiry Type

Click on the Enter button.

Step 2 Completing the Inquiry

Enter the Customer Code for the Sold-to party. You can also use the Matchcode button to search from a list.

Step 2 Completing the Inquirya.Enter Sold-to Partyb.Ship-to Party will default in from the customer master. If there are multiple ship to partners attached to a sold to you will get a selection box.


Enter Sold-to party. Enter the Ship-to Party

Enter the Requested Delivery Date and the validity dates.


Enter Sold-to party.

b.Enter the Ship-to Party

c.Enter the Requested Delivery Date and the validity dates.

d.Enter Material Numbers or select from a list by using a matchcode search. Enter the requested order quantity.

d.d.

Schedule Lines w/inventory

Full quantity is available for customers request date.

Schedule Lines w/partial availability:75 in stock75 coming in 8/16100 coming in 8/23

III. Sales Quotations

QuotationUsed to store pre-sales data.There are a wide range of functions defined for managing and monitoring these documents.Information gained from these documents can be used to gauge different market, sales, inventory trends.Each document has a validity date.A Textual description can be used instead of the material #.A quote is a legally binding declaration to the customer containing material specifications, prices and terms of delivery/sales.


Enter Quotation Type

QT = Sales QuotationAS = Service Quotation

Override Application or Industry:

Menu Path: Go-to Header To change the industry or application for special projects that deviate from the customer master default.

Facilitator Demonstration/ReviewCreating an InquiryCreating a QuotationWith Reference to InquiryWithout Reference to Inquiry

IV. Sales Orders

Sales Order TypesSales and DistributionCodeOrder TypeCodeOrder Type

Override Freight Forwarder (Carrier) by line item:

Menu Path: Go-to Item - Partners Select the match code on the forwarding agent partner no. field. Use Account group Z015 (shipping/freight).

Sales Order Processing Name the 2 distribution channels?Name the 7 different division?Name 2 things order type controls?Where do you change the freight carrier?Where does the application and industry default from and how do you change?What is the SAP term for Item Master?

Sales Order ProcessingWhat 3 organizational elements make up the Sales Area?What is the condition type for Material Price?What is the condition type to override Material Price?Name 2 things order type controls?Where do you change the freight carrier?What is the search criteria you will use to find the forwarding agent (freight carrier)?Where does the application and industry default from and how do you change?

V. Inventory and Availability Reporting

Availability CheckInward movementof goodsOutward movementof goodsStockPurchaseOrderProductionOrderFirm PlannedOrderDeliverySalesOrderReservationOther factors to take into account: Safety stockStock transport ordersReplenishment lead time

StockonHandDeliveryOpenPurchaseOrdersStockin TransitFirmPlannedOrdersSalesOrdersReservedInvent.Inward MovementsOutward MovementsTime Fence / Lead-timeReplenishmentSD Available to Promise CapabilitiesOpen Production Orders

Stock OverviewStock Requirements ListAvailability OverviewWarehouse Stock

Availability Overview: Displays the availability situation for a particular material and plant combination.

Transaction Code CO09 orIcon from within sales order -

Enter Plant 1WEnter Checking rule A Check the W/Reqmts Quants Box

Stock Overview : Transaction Code - MMBE Displays all stock (&stock types) of a material over all organizational levels.

Stock Requirements List:Transaction Code MD04 Displays open incoming orders (planned orders, production orders, purchase orders)and outgoing requirements (sales orders, deliveries, reservations, purchase orders)Forecast VSF is consumed by sales documents. ATP does not consider VSF.

Warehouse Stock:Transaction Code MB52

Business Process Flow in SAPInvoiceDeliveryOrderDocument flow of any sales documentOrder 900. Delivery 80000459 . . Picking request 17951109. . GD goods issue: delvy 49001828 . . Invoice 90000333. . . Accounting document 100000276PaymentSales documents represent transactions in the system.They form a chain of related documents.The entire chain of documents creates the document flow.The system copies data from one document into another to reduce data entry and make problem resolution easier.

If you enter an order for the same customer/material combination you will get a notification.

Select List

Sales Order Processing What 3 organizational elements make up the Sales Area?Where do you change the freight carrier?What is the search criteria you will use to find the forwarding agent (freight carrier)?What is Document Flow?

VI. Consignment Orders

Consignment Orders

Consignment goods are goods which are stored at the customer location but which are owned by . The customer is not obliged to pay for these goods until they remove them from consignment stock.

In inventory management, the consignment stock is managed as special stock in your inventory and is assigned to specific customers. Availability check is not carried out on consignment inventory

Consignment Fill Up Order Type KBConsignment fill up is used to supplement or create the customers consignment stock.When you ship consignment stock to the customer, you process the transaction by creating a consignment fill-up order. The relevant quantity is removed from regular inventory in your plant and is added to special stock for the customer. The transaction is not relevant for pricing since the consignment stock remains the property of .Consignment Fill-UpDeliveryGoods Issue(Increased Stk)SalesSalesWMCustomer Consignment Stock Created

Create Consignment Fill-upOrder Type KB

Go to your Stock Overview report to view the inventory movements.Transaction Code: MMBE

After Product is shipped, the inventory will be moved to Customer Consignment Stock.

Consignment Issue Order Type KEConsignment issue enables the customer to take the consignment goods from the special stock for their use or to sell. When the customer removes consignment stock to use or sell, you record the transaction in the system by creating a consignment issue order. When the goods issue is posted by Sales, the relevant quantity is deducted from both the customers special stock and your own total valuated stock. The transaction is now relevant for pricing since the goods now become the property of the customer.Consignment IssueW/ref to fill-upDeliveryGoods Issue(Decreases Stk)Billing DocumentSalesSalesSales

Consignment Returns Order Type KRConsignment Return is used only if you need to reverse a consignment issue.The relevant quantity is returned to consignment inventory.The transaction is relevant for pricing since the customer was already billed for this. A credit memo will be created.Consignment ReturnsW/ref to IssueDeliveryGoods Issue(Increase Stk)CreditMemoSalesSalesSalesSales

Consignment Pick-Up Order Type KAAny consignment goods stored at the customers warehouse that havent been used can be returned to s warehouse with a consignment pick-up. If the customer returns consignment stock to you, you record the transaction in SAP by creating a consignment pick-up order, similar to a return order. When the goods issue is posted, the relevant quantity is deducted from the customers special stock and is added back into your regular stock. Your total valuated stock remains the same since the returned stock was regarded as inventory while it was at the customers premises.The transaction is not relevant for billing.Consignment Pick-UpDeliveryGoods Issue(Decreases Stk)SalesWMWMCustomer Consignment Stock depleted

Document Flow:

Menu Path Environment Display Document FlowIcon

Sales Order Processing What does a consignment issue order type do?Is a consignment fill-up order relevant for billing?Is a consignment return relevant for billing?What is the search criteria you will use to find the forwarding agent (freight carrier)?What is Document Flow?What 3 organizational elements make up the Sales Area?TIP: Ctrl C and Ctrl Y

Sales Order Processing What does a consignment issue order type do?Is a consignment fill-up order relevant for billing?Is a consignment return relevant for billing?What is the search criteria you will use to find the forwarding agent (freight carrier)?What is Document Flow?

VII. Order Reporting

Reporting and Analysis in SAP R/3Standard ReportingLists documents and master dataProvides analysis through sorting and totalsDisplays details

List ProcessingLists selected documentsAllows you to branch to documents and return to listHelps organize work

ZVCSO customer or sales report can be run by:Sales GroupSales EmployeeDistribution ChannelMaterialSold-to Many others

The report can also be dumped into Excel to sort and modify to give to customers or the outside sales force

To do so select:

List Save File

Select Spreadsheet as the format to be saved

Name the file and note the file name path

Open Excell and find your file You may have to search for all files

A Clip of ZVSCO in Excell

ZVISO Is an Internal Order report similar to ZVCSO that contains additional information and is run the same way

VA05 Report run in SAP by:Sold-to MaterialPO # Open ordersBoth open and closed ordersYour Orders

VA05 lists sales orders per your selection criteriaAdditional fields can also be utilized

Hidden fields can be selected Brought over to displayed fields And copied into the report

Documents can be referenced just by double clicking the SD doc #

This takes you into the document itself to update or view

VIII. Complaints Processing

Return Order RE Product being return from customerCredit Memo Request CR Credit being issued without product being returned.Debit Memo Request DR Debit being given to customer.The request is automatically placed on billing block pending verification. If the credit is justified the billing block is removed by sales supervisor and a credit or debit memo is created.Order Reason is required to help with the justification process. Additional details can be entered in the header comments text.Subsequent Delivery Free of Charge SD Short shipment

Credit and Debit MemosCredit memoDebit memoCredit memo request Debit memo requestCredit MemosDebit MemosBilling blockInvoiceInvoiceInvoiceInvoice

Credit/Debit memo request Order Type CR/DRBilling Block (release request)Billing Due List (Credit/Debit Memo creation)

Credit Memo Request with Reference to Invoice:

a.Enter Billing Docb.Click Selection List to select item and quantity.


c.Select the items and quantityd.Hit copy button


Order reasonBilling block will default

Credit Memo Request with Reference to Invoice:g.PN00 (price override) the amount of the credit you want to issue.

How Are Returns Processed?Returns deliveryCredit memoReturn request(authorization)Accept returned goods (Post goods issue)Place in restricted stockCredit memo created after removing the billing block.InvoiceInvoiceSalesOrderBilling blockOrder reason required to create Return Order

Return Order Request Order Type REReturn Delivery (accept return)Billing Block (release return request)Billing Due List (Credit Memo creation)

Note: Return Order Freight Creating a return order and want credit freight back to the customer the freight needs to be added at order entry. When you create an return order with reference to a prior invoice, freight that was charged on the original invoice will be copied into the return order and go all the way through billing. Or, when you create a return order without reference to a prior invoice, you are able to enter freight as a line item on the order and process all the way through billing.

IX. Pro-Forma Invoice Creation

Creating a Billing Document Pro-Forma InvoiceInvoices will typically be created using the Billing Due List which creates invoices in bulk that are due for billing. However, an individual billing document can be created in VF01 following the menu path: Logistics, Sales and Distribution, Billing, Billing Document, Create.

Proforma InvoicesA proforma invoice is an invoice that is generated before the shipment is made. Often the proforma invoice is used by our customers to obtain importation license when shipping overseas.There are two methods by which a proforma invoice is generated: For an entire sales documentissued for the entire open order. For an outbound deliveryissued for just the material on a specific delivery. Note: Data from Proforma invoices is not transferred to Accounting.

Creating a Proforma Invoice from a Sales DocumentFrom the drop down menu, choose the billing type Proforma for Order.Enter the sales order document number. Hit enter.

Creating a Proforma Invoice from a Sales DocumentThe material on the order will be listed.To finish processing your proforma invoice, click on the Save icon.Once the invoice has been generated, the document number will appear at the bottom of the screen.The document will automatically print to the users designated printer.

Sales Order Processing Sales and Distribution ListsPR00 Material PricingAvailability checking within InquiryDelivery Due ListDelivery Groups/Ship Complete Shipping tab

Sales Order ProcessingFree Delivery FD (Sample, Shows, Warranty) Schedule item categoryProforma Invoice Creation Errors Information, Warning, ErrorOrder Reason Non G/L Sales Consignment

Sales Order Processing Is a consignment fill-up order relevant for billing?Is a consignment return relevant for billing?What is the search criteria you will use to find the forwarding agent (freight carrier)?What information is required when entering a return order request?What process needs to take place for a Credit Memo to be generated from a Credit Memo Request?What does a rush order (SO)do different then a standard order (OR)?

Hands-On Order Processing Exercise

Review Questions:

What information is required when entering a return order request?Order Reason Code2. What process needs to take place for a Credit Memo to be generated from a Credit Memo Request?SD documents blocked for billing (release)3. Who processes the delivery on the return order?Warehouse management