Sales Order Processing <Site>

Right Solution, Right Time, Right Price

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Agenda
I. II. III. IV. V. VI. VII. VIII. IX. X. General Information for Sales Order Processing Sales Inquiry Quotations Sales Orders Inventory/Availability Reporting Consignment Orders Reports/Lists Complaints Processing Pro-Forma Invoice Creation Questions / Review

I. General Information for Sales Order Processing

Organizational Elements Quick Review

Sales Area <Client> Sales Organization
(0010 <Client> Americas)

SALES ORGANIZATION

Direct Distribution Channel

(01)

Distributor Distribution Channel

(02)

DISTRIBUTION CHANNEL

Drives

General Motion

Machine Tool

<Client> Semiconductor Group (YSG)

(01)

(02)

(03)

(04)

Service House Accounts (05)

Columbus

Switch

DIVISION

(06)

(07)

PARTS SALES PARTS SALES SERVICE ORDER SERVICE ORDER REPAIR ORDER REPAIR ORDER

SPECIAL REPORT PARTS SALES PARTS SALES PARTS SALES PARTS SALES PARTS SALES TOTAL PARTS SALES SERVICE ORDER SERVICE ORDER SERVICE ORDER SERVICE ORDER SERVICE ORDER TOTAL SERVICE ORDERS REPAIR ORDER REPAIR ORDER REPAIR ORDER REPAIR ORDER REPAIR ORDER TOTAL REPAIR ORDERS

I. General Information for Sales Order Processing

Business Processes Cycle

Sales Sales Order Order Processing Processing Pre-Sales Quotation Activities Inventory Inventory Sourcing Sourcing

Invoice

Payment Payment Billing Billing

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Delivery Delivery

I. General Information for Sales Order Processing

Basic Functions Within Sales Order Processing

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

Determines Pricing Decides Delivery Requirements Decides Requirements for creating invoices Updates Document Flow Updates Sales reporting Carries out availability check

I. General Information for Sales Order Processing

Sales Documents

I. General Information for 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.

I. General Information for Sales Order Processing

Sales Documents
There are three distinct control elements within a sales documents:
Order type controls: Number range for the order Incompletion procedure at the header Output determination procedure Item number increment Document pricing procedure

Item category controls:

Should pricing be carried out Is item to be invoiced Which fields appear on the incompletion log Partner determination

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

I. General Information for Sales 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.

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I. General Information for Sales Order Processing

How Sales Documents are Structured

Sales Document
All sales documents have basically the same structure. They are made up of: Header
Line Item Schedule Line

Header
Item 1
Schedule line 1

Item 2
Schedule line 1 Schedule line 1 Schedule line 1

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I. General Information for Sales Order Processing

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 party Purchase Order Sales Area Data Payment Terms Pricing elements for the entire document Order Status Industry (add. data Acustomer group 1) Application (add. data Acustomer group 2)

Sales Document
Header
Sold-to party: 1000006 Ship-to party: 1000006 Currency: USD Req. Delivery Date: 7/28/00

Item 1
Schedule line 1

Item 2
Schedule line 1 Schedule line 1 Schedule line 1

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I. General Information for Sales Order Processing

Item data

Sales Document
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 data First delivery date Reason for rejection Partner determination (an alternative ship-to
party or forwarding agent (carrier) can be defined for a particular item)

Header
Item 1

Item 2

Item level text Item level status Plant and storage location specifications Pricing conditions for the individual items Item Category
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I. General Information for Sales Order Processing

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)

Sales Document
Header
Item 1
Schedule line 1

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 quantity Delivery date Confirmed quantity

Item 2
Schedule line 1 Schedule line 1 Schedule line 1

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I. General Information for Sales Order Processing

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 customermaterial information records (customer specific part numbers)

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I. General Information for Sales Order Processing

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.

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I. General Information for Sales Order Processing

What is the difference between an Inquiry and a Quotation? Inquiry Non-Binding Agreement
For 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 <Client>

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

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I. General Information for Sales Order Processing

Reporting and Analysis in SAP R/3
Standard Reporting Lists documents and master data Provides analysis through sorting and totals Displays details List Processing Lists selected documents Allows you to branch to documents and return to list Helps organize work

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Sales and Distribution

Sales Document Icons
General Icons
Status Overview Display Item Detail Create Item Delete Item Page Down New Session View Availability Item Conditions These Icons appear on most Sales Documents

Display Sales Summary

Display Sold-to Party

Header Output View

Reject Document

Item to top Display Document Flow Check Item Availability

List Sales Orders

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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?

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II. Sales Inquiries

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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.

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Creating a Sales Inquiry Menu Path

Logistics >> Sales and Distribution >> Sales >> Inquiry >>

VA11 - Create
Transaction Code:
VA11

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a.

Step 1 Initial Screen

a. Enter IN for Inquiry Type

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b.

Step 1 Initial Screen

a. b. Enter IN for Inquiry Type Click on the Enter button.

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a.

Step 2 Completing the Inquiry

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

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b.

Step 2 Completing the Inquiry

a. b. Enter Sold-to Party 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.

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Step 2 Completing the Inquiry

a. b.
c.

c.

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

Enter the Requested Delivery Date and the validity dates.

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Step 2 Completing the Inquiry

a.
b. c.

Enter Sold-to party.

Enter the Ship-to Party Enter the Requested Delivery Date and the validity dates. Enter Material Numbers or select from a list by using a matchcode search. Enter the requested order quantity.

d.

d.

d.

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Schedule Lines w/inventory

Full quantity is available for customers request date.

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Schedule Lines w/partial availability: 75 in stock 75 coming in 8/16 100 coming in 8/23

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III. Sales Quotations

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II. Sales Inquiries

Quotation 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.

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.
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Step 1 Initial Screen

a. Enter Quotation Type QT = Sales Quotation AS = Service Quotation

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Override Application or Industry:

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

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Inquiries and Quotations

Facilitator Demonstration/Review
1. Creating an Inquiry
2. Creating a Quotation a. With Reference to Inquiry

b. Without Reference to Inquiry

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IV. Sales Orders

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Sales and Distribution

Sales Order Types Code Order Type Code Order Type

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Override Freight Forwarder (Carrier) by line item:

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

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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?

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Sales Order Processing

What 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?
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V. Inventory and Availability Reporting

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Inventory and Availability

Availability Check
Inward movement of goods Purchase Order Stock Production Order Firm Planned Order

Other factors to take into account: Safety stock Stock transport orders Replenishment lead time

Delivery

Sales Order

Reservation

Outward movement of goods 53

Inventory and Availability

SD Available to Promise Capabilities

Inward Movements Replenishment

Stock on Hand

Open Purchase Orders

Open Production Orders

Stock in Transit

Firm Planned Orders

Delivery

Sales Orders

Reserved Invent.

Outward Movements

Time Fence / Lead-time

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Stock Overview Stock Requirements List Availability Overview Warehouse Stock

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Availability Overview: Displays

the availability situation for a particular material and plant

combination.
Transaction Code CO09 or Icon from within sales order -

Enter Plant 1W Enter Checking rule A Check the W/Reqmts Quants Box
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Stock Overview : Transaction Code - MMBE

Displays all stock (&stock types) of a material over all organizational levels.

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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.

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Warehouse Stock: Transaction Code MB52

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Business Process Flow in SAP

Order Delivery

Invoice

Payment

Document flow of any sales document Order 900 . Delivery 80000459 . . Picking request 17951109 . . GD goods issue: delvy 49001828 . . Invoice 90000333 . . . Accounting document 100000276

Sales 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.

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

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Select List

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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?

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VI. Consignment Orders

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Consignment Orders
Consignment Orders
Consignment goods are goods which are stored at the customer location but which are owned by <Client>. 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

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Consignment Orders
Consignment Fill Up Order Type KB
Consignment 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 <Client>. Sales Consignment Fill-Up Sales Delivery WM Goods Issue (Increased Stk)

Customer Consignment Stock Created

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Create Consignment Fill-up Order Type KB

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

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

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Consignment Orders
Consignment Issue Order Type KE
Consignment 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. Sales Consignment Issue W/ref to fill-up Sales Delivery Sales Goods Issue (Decreases Stk) Billing Document

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Consignment Orders
Consignment Returns Order Type KR
Consignment 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.

Sales Consignment Returns W/ref to Issue

Sales Delivery

Sales Goods Issue (Increase Stk)

Sales Credit Memo

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Consignment Orders
Consignment Pick-Up Order Type KA
Any consignment goods stored at the customers warehouse that havent been used can be returned to <Client>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 <Client> inventory while it was at the customers premises. The transaction is not relevant for billing. Sales Consignment Pick-Up WM Delivery WM Goods Issue (Decreases Stk) Customer Consignment Stock depleted

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Document Flow:
Menu Path
Environment Display Document Flow

Icon

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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

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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?

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VII. Order Reporting

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I. General Information for Sales Order Processing

Reporting and Analysis in SAP R/3
Standard Reporting Lists documents and master data Provides analysis through sorting and totals Displays details List Processing Lists selected documents Allows you to branch to documents and return to list Helps organize work

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ZVCSO customer or
sales report can be run by:
Sales Group Sales Employee Distribution Channel

Material
Sold-to Many others

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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

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Select Spreadsheet as the format to be saved

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Name the file and note the file name path

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Open Excell and find your file

You may have to search for all files

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A Clip of ZVSCO in Excell

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

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VA05 Report run in SAP by:

Sold-to Material

PO #
Open orders Both open and closed orders Your Orders

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

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

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

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This takes you into the document itself to update or view

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VIII. Complaints Processing

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Complaints Processing
Return Order RE Product being return from customer Credit 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

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Credit and Debit Memos

Credit Memos
Invoice

Credit memo request

Sales Order

Credit memo
Invoice

Debit Memos
Invoice

Billing block

Debit memo request

Sales Order

Debit memo
Invoice

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

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Credit Memo Request with Reference to Invoice:

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

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Credit Memo Request with Reference to Invoice:

c. d. Select the items and quantity Hit copy button

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Credit Memo Request with Reference to Invoice:

e. f. Order reason Billing block will default

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Credit Memo Request with Reference to Invoice:

g. PN00 (price override) the amount of the credit you want to issue.

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How Are Returns Processed?

Invoice

Return request (authorization)

Sales Order

Returns delivery

Credit memo

Order reason required to create Return Order

Accept returned goods (Post goods issue)

Place in restricted stock
Invoice

Credit memo created after removing the billing block.

Billing block

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Complaints Processing
Return Order Request Order Type RE Return 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.

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IX. Pro-Forma Invoice Creation

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Creating a Billing Document Pro-Forma Invoice

Invoices 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.

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Proforma Invoices
A 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.

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Creating a Proforma Invoice from a Sales Document

From the drop down menu, choose the billing type Proforma for Order.

Enter the sales order document number. Hit enter.

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Creating a Proforma Invoice from a Sales Document

The 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.

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Sales Order Processing

Sales and Distribution Lists PR00 Material Pricing Availability checking within Inquiry

Delivery Due List

Delivery Groups/Ship Complete Shipping tab

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Sales Order Processing

Free Delivery FD (Sample, Shows, Warranty)
Schedule item category

Proforma Invoice Creation Errors Information, Warning, Error

Order Reason Non G/L Sales Consignment

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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)?

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Sales Orders Hands-On Order Processing Exercise

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