escm process flow

CONFIDENTIAL PD-IT, Stacey Ireson, February 26, 2007

PMS Sales and service regions (SSR) and districts (SSD)

S S D G e rm a ny S S D G re a t B ritan e tc. S S D M C RM u lti co u n try re g ion

S S R E M E AE u rop e , m id d le E as t, A frica

S S D U S A S S D C an a da

S S R A M E CN o rth A m e rica

S S D Ja p an S S D K o rea e tc.

S S R A P A CA S IA P a c if ic

P h ilip s M e d ica l S ys te m sS S R s

MCR: multi country region

SSR: Sales and Service region

SSD: Sales and Service District


Organizational Elements in SCM

• Company Code• Sales Area consisting of

– Sales Organization– Distribution Channel– Division

• Plant• Storage Location• Shipping Point• Warehouse• Purchase organisation


UK Company codes and Sales organisationsPMS structure, valid for all PMS sales organisations: country code + ..90

G B 90S S D G B

S a les o rg

G B 93 G B 9 3 S S D G B C S

S a les o rg

G B 90P h ilip s M e d .sys t. U K L TD

C om pany code

Commercial sales Service sales


UK Company codes and Sales organisations

• 1 Company code per Country (SSD) or region (MCR)– DE90 for Germany– IT90 for Italy– DX95 Region ASPAC– DX96 Region MEA– DX97 Region LATAM

• 2 Sales organisations per company code– xx90 for commercial sales – xx93 for service sales


UK Sales organisations and Distribution Channels

G BG B D is tr C ha n . G B

D is tr ibu t ion channel

G B 90S S D G B

S a les o rg



G B 93 G B 9 3 S S D G B C S

S a les o rg

•PMS: 1 distribution channel per sales organisation

•(country code or DX in case of MCR)


UK Sales organisations and Divisions

M SM e d ica l sys te m s

D iv is ion

G B 90S S D G B

S a les o rg

C SC u s to m e r S e rv ices

D iv is ion

G B 93 G B 9 3 S S D G B C S

S a les o rg

•PMS: Division MS (systems) and CS (customer services)


UK Sales areas

M SM e d ica l sys te m s

D iv is ion



G B 90S S D G B

S a les o rg

C SC u s to m e r S e rv ices

D iv is ion



G B 93 G B 9 3 S S D G B C S

S a les o rg


UK Sales organisations and Distribution Channels and plants

G B 90G B S S D G B

P lant

G B 93 G B 9 3 P h ilip s M e d ica l S yste m s U K L td

P lant

D E M CP h ilip s M e d izin S yste m e B o e b li

P lant



G B 90S S D G B

S a les o rg

G B 93 G B 9 3 P h ilip s M e d ica l S yste m s U K L td

P lant



G B 93 G B 9 3 S S D G B C S

S a les o rg


ZPO & ZSO characteristicsIt is a project order if at least one of the following situations is relevant: • Pre-calculations/cost control on the order has to be carried out • Revenue recognition cannot be based on delivery completion and installation completion status and not triggered at point of sending the billing doc. The customer acceptance will trigger sales recognition. In SAP this is controlled by the status of the WBS element• Sales of solutions through chapter level ordering functionality • Complex service activities have to be carried out or billable services are involved (more than simple installations, extended warranty and training) including the use of write-in products

It is a standard order if: • The order is for non-installable supplies or box products • Simple installations, extended warranty and training are ordered with installable products • No pre-calculations/cost control on the order has to be carried out • Sales recognition is taken at the point of invoicing


ZPO & ZSO Characteristics

Characteristics Project SalesOrder Type: ZPOChapter MaterialBilling plan Item levelPre-calculation Chapter LevelDirect or indirect all with GRMain Project manager mandatory (Y1)

Characteristics Regular SalesOrder Type: ZSONo Chapter MaterialBilling plan header levelAutomatic billing block removalTriangle (No GR), Direct or indirectLead sales agent mandatory (ZL)

CONFIDENTIAL PD-IT, Stacey Ireson, February 26, 2007 11

Project and regular Order CharacteristicsRegular order Project order

Process variant 1 (install/agreement relevant)

Process variant 2 (Easy order)

Installation Service items, standard and extended Normative hours table

Services standard Normative hours table Header Status driven

non-instal l relevant if: No services are involved

Customer Acceptance

At Handover/completion of install At Handover/completion of install Upon delivery of goods.

Easy order Not applicable Not applicable Possible Pre-calc Required, received on solution level No No Cost accruals Yes. Posted at Customer acceptance status. solution

can remain open. No No

Billing plan Allowed Not allowed Not allowed Partial invoicing

Allowed Allowed however exception. Partial by Sales order item based on customer agreement

Partial by Sales order item based on customer agreement

Down payments

Allowed Allowed Not allowed

Billing methods Billing plan (all invoice relevant items) Delivery related billing (product and solution items) Triangle billing (product items) Order related (billable service items)

Delivery related billing (product items) Triangle billing (product items) Order related (billing service items)

Delivery related billing (product items

Collective Billing

No Yes No

Billing due method

may only become due for billing by manually lift the billing block.

BB Lifting with automatic, status driven Available for billing due when all criteria met.

No billing block, available after delivery

Revenue recognition method

Each solution/chapter can be individually recognized, fully recognized at invoicing of solution

Upon Invoicing.

Upon Invoicing.

Revenue cost object

WBS by solution. In case of inter company processing (merge center scenario) WBS structure needed.

Sales order item

Results analysis & settlement active

Yes, by WBS Only for service materials Never

Valuation method

WIP by WBS WIP by Sales order item for service items. Valuated sales order item stock for product items

Valuated sales order item stock for product items.

Sales price method

No sales price at solution/chapter level, Pricing at first level

Required pricing at first level Generally applied at lower levels as well

Required pricing at first level & lower levels


Production/assembly

order

Salesorder

OutboundDelivery

Purchaseorder

InboundDelivery

Invoicereceipt

Salesorder

Invoice

Siebel order

Outbounddelivery

TradeInvoice

PMG

MP1

Document item flowRegular Sales

Siebel

Goodsreceipt

Triangle procurement item

Quote

(in)direct procurement item

Out of stock item

Service orderService

Install order

Billable service item

Installation service item


Project definition

WBS Element

Network

Chapter

Schedule lines

PO Req

Purchase order

Delivery

Billing

FI: Finance CO: Controlling PCA: Profit Center Accounting

PA: Profitability Analysis

Sales order PS: Project System

SD: Sales & Distribution

MM: Mat. Man.

MASTER

DATA

Conf.

12nc’s

Project sales scenario SCM Harmonization Pyramid aligned

Goods Receipt/Invoice Receipt

Project stock delivery

Invoice Receipt

Triangle


Production/assembly

order

Salesorder

OutboundDelivery

Purchaseorder

InboundDelivery

Invoicereceipt

Salesorder

Invoice

Siebel order

Outbounddelivery

TradeInvoice

PMG Document item flowProject Sales

Siebel

Goodsreceipt

Triangle procurement item

Quote

(in)direct procurement item

Out of stock item

Service orderService

Install order

Billable service item

Installation service item

ProjectWBS

Chapter (system solution) item

MP1


ZPO process flow• Create Project Sales order : VA01• Order Type: ZPO• Sales area: GB90/GB/MS• Process type 600/BP/DIR• Material field. Enter "CHAPTER-GB90".This chapter item is only applicable for project sales. The chapter represents the sold solution and will generate a WBS Element level. The chapter also generates the network that is used for date management {Start Installation, Expected Hand Over, Start Application}.* Chapter* KMAT – Refer to chapter* Sub KMAT – Refer to KMAT to inform the PMG that this belongs to the KMAT* 12 NC – Refer to KMAT to inform the PMG that this belongs to the KMAT•Write-in product – Refer to Chapter•Please refer “Car example model B-10” for more info on 6NC, 12NC, etc…

•PO (on PMG or third party), WBS, Network, SWO automatically created


ZPO process flow (Continue…)

• GR: Post a GR for the PO created against PMG or third partyFI EntryDebit Consumption account(P&L) : 7700052 Fin WBS/box sales PhCredit GR/IR Account : 5170003GR/IR postings

Cost is booked against the WBS

•IR: INVOIC IDoc comes from PMG or Post manually for third party PosFI EntryDebit GR/IR Account : 5170003GR/IR postingsCredit Vendor :132184 PHILIPS ULTRASOUND


ZPO process flow (continue…)

• Delivery: Post delivery for the Sales orderNo financial postings will be created

•Billing: Create Billing – Order related – Billing planBilling block in billing plan is automatically removed after the Completion date is entered for the Activities in the Network.

FI EntryDebit Customer : 9497887 HAMPSHIRE PCTCredit Sales to 3rd : 8000100 Sales to 3rds

For project Sales, Revenue is recognized via Results analysis for the WBS


ZSO Process Flow (Direct delivery) Create Regular Sales order : VA01 Order Type: ZSO Sales area: GB90/GB/MS Process type 600/OR/DIR

PO (on PMG or third party) created automaticallyDirect delivery (600/OR/DIR): PMG directly delivers the goods to the customer. No GR is posted and no Delivery. Only IR and Billing

IR: FI EntryDebit Goods in transit : 1126000 Com.inv.goods in transit-interc.dlv.goodsCredit Vendor : 318412 PHILIPS MEDIZIN SYSTEME BOEBLINGEN

Billing: FI EntryDebit Customer : 94097419 SOUTH TEES HOSPITALS NHS TRUST Credit Sales to 3rd : 8000100 Sales to 3rds Debit Goods consumption : 7820102 Goods cons.third party sales Credit Goods in transit : 1126000 Com.inv.goods in transit-interc.dlv.goods

Consumption amount is posted to PSG


ZSO Process Flow (SSD) Create Regular Sales order : VA01 Order Type: ZSO Sales area: DE90/DE/MS Process type 600/DR/SSDPO (on PMG or third party) created automaticallySSD (600/DR/SSD): Goods received by SSD and delivers it to customer.

GR: FI EntryDebit Inventory : 1100004 Comm.inv.stores-othCredit GR/IR : 5170003 GR/IR postings

IR: FI Entry (INVOIC IDoc from PMG)Debit GR/IR : 5170003 GR/IR postings Credit Vendor : 132184 PHILIPS ULTRASOUND

Delivery: FI EntryDebit Goods in transit : 1126000 Com.inv.goods in transit-intercCredit Inventory : 1100004 Comm.inv.stores-oth

Billing: FI EntryDebit Customer : 94192415 Markus FringsCredit Sales to 3rd : 8000100 Sales to 3rdsDebit Goods consumption : 7820102 Goods cons.third party sales tCredit Goods in transti : 1126000 Com.inv.goods in transit-interc


ZSO Process Flow (Merge center) Create Regular Sales order : VA01 Order Type: ZSO Sales area: DE90/DE/MS Process type 600/DR/MC Delivering Plant will be Merge center e.g. DEMCPO (on PMG or third party) created automatically in DEMC.MC (600/DR/MC): Goods received by Merge center and delivers it to customer.

GR posted in DEMC: FI EntryDebit Inventory : 1100004 Comm.inv.stores-othCredit GR/IR : 5170003 GR/IR postings

IR posted in DEMC: FI Entry (INVOIC IDoc from PMG)Debit GR/IR : 5170003 GR/IR postings Credit Vendor : 318412 PHILIPS MEDIZIN SYSTEME

Delivery happens in DEMC: FI EntryDebit Goods in transit : 1126000 Com.inv.goods in transit-intercCredit Inventory : 1100004 Comm.inv.stores-oth


ZSO Process Flow (Merge center continue)

Customer Billing: FI EntryDebit Customer : 94192415 Markus FringsCredit Sales to 3rd : 8000100 Sales to 3rdsDebit Goods consumption : 7820102 Goods cons.third party sales tCredit Goods in transti : 1126000 Com.inv.goods in transit-interc

Intercompany Billing in DEMC: FI EntryDebit Customer (SSD) : 320401 Philips GmbHCredit Goods in transit : 1126000 Com.inv.goods in transit-interc.Debit Goods consumption : 7825013 Goods cons.Credit Sales : 8050001 Loc.suppl.of fin.goods org.within fiscal

When Intercompany billing document is created an IDoc (INVOIC) is automatically created to Post Vendor invoice in SSD (Normal FI Invoice FB60).

FI Entry in SSD company code:

Debit Goods in transit : 1126000 Com.inv.goods in transit-interc Credit Vendor (Merge center) : 318875 Merging Center Boeblingen Germany


Questions ?

escm process flow

Documents