© 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
© 2012 SAP AG. All rights reserved. 4
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.
© 2012 SAP AG. All rights reserved. 5
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.
© 2012 SAP AG. All rights reserved. 6
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.
© 2012 SAP AG. All rights reserved. 7
Typical Usage (2 of 3) Order-to-Cash (Sell-from-Stock)
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.
© 2012 SAP AG. All rights reserved. 8
Typical Usage (3 of 3) Order-to-Cash (Sell-from-Stock)
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
© 2012 SAP AG. All rights reserved. 10
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
© 2012 SAP AG. All rights reserved. 11
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)
© 2012 SAP AG. All rights reserved. 12
Order-to-Cash (Sell-from-Stock) Order-to-Cash with Packing (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 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
representative checks
the availability of the
products (ATP:
available-to-promise) to
confirm sufficient stock
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
Journal Entry (Goods
Issue for Customer)
Delivery Note
© 2012 SAP AG. All rights reserved. 13
Order-to-Cash (Sell-from-Stock) Order-to-Cash with Packing (2 of 2)
Create Customer
Invoice
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 Invoicing
Accountant
Process
Role
Work center
Form
Financial
Posting
Related Scenario: • Cash and Liquidity
Management (Processing
Receivables and Payments)
Customer Invoice
Customer Invoice
© 2012 SAP AG. All rights reserved. 14
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
confirm sufficient stock
on the delivery date and
adds this information to
the sales order.
The supply planner
reviews the customer
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
system automatically
triggers an outbound
delivery during the
confirmation of the last
task.
The sales representative
creates a quote for a
customer.
The sales representative
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
Journal Entry (Goods
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
© 2012 SAP AG. All rights reserved. 15
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.
Based on the delivered
sales order, the
accountant creates 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.
The sales representative
creates a correction
invoice based on the
original invoice to
include the discount.
This step is specific
for Germany only.
The warehouse manager
releases the outbound
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
Related Scenario: • Cash and Liquidity
Management (Processing
Receivables and Payments)
© 2012 SAP AG. All rights reserved. 16
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.
The sales representative
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.
The sales representative
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
© 2012 SAP AG. All rights reserved. 17
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
reviews the customer
demand generated by
the sales order and
releases the demand.
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
Based on the delivered
sales order, the
accountant creates 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
Related Scenario: • Cash and Liquidity
Management (Processing
Receivables and
Payments)
© 2012 SAP AG. All rights reserved. 18
Order-to-Cash (Sell-from-Stock) Order-to-Cash with Third-Party Logistic
Create Sales Order
The supplier planner
reviews the customer
demand generated by
the sales order and
releases the demand.
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
representative creates
a sales order.
The sales
representative decides
to deliver products from
a third-party managed
warehouse, and checks
the availability of the
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
Third Party Logistics
Check Business
Communication
Monitor
3PL Request
Based on the 3PL
request, the warehouse
manager creates and
releases the outbound
delivery.
Warehouse Manager
Release Outbound
Delivery
Delivery Note
Third Party Logistics
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
© 2012 SAP AG. All rights reserved. 19
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
representative checks
and releases the return.
The sales
representative creates
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
Related Scenario: • Cash and Liquidity
Management (Processing
Receivables and Payments)
Customer Credit Memo
This is an optional step.
© 2012 SAP AG. All rights reserved. 20
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
representative checks
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
© 2012 SAP AG. All rights reserved. 21
© 2012 SAP AG. All rights reserved
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