sales order management
DESCRIPTION
Sales Order Management. SAP Best Practices for Retail. Purpose, Benefits, and Key Process Steps. Purpose - PowerPoint PPT PresentationTRANSCRIPT
Sales Order Management
SAP Best Practices for Retail
© 2011 SAP AG. All rights reserved. 2
Purpose, Benefits, and Key Process Steps
Purpose Sales Order Management describes a Business-to-Business (B2B) scenario: you sell to your known customer(s)
(with master data record), who in turn sell(s) the merchandise to their customers (wholesale function). In addition to sales order processing functions, this scenario also includes the following process steps: credit limit check and availability check, consignment, backorder processing, customer contract, product catalog, online store, customer billing document, payment handling, and subsequent settlement.
Benefits The entire document chain - presales phase, order, follow-up actions - forms a document flow or history. The
flow of data from one document to another reduces manual processing and facilitates problem solving. Backorder fulfillment from returns stock allows you to manage how returns are to be allocated for backorders and
stock transfers: If the article is unused and can be readily shipped again, then it is quicker and more cost-effective to use it to fill sales backorders or stock transfer orders rather than to move it back to unrestricted-use stock and for subsequent picking and reshipment.
Key Process Steps Creation of Standard Orders, Rush Orders, Third-Party Orders Backorder Processing and Rescheduling Creation of Customer Billing Documents Payment Handling Customer Returns Handling Subsequent Settlement Customer Consignment Handling Customer Contract Handling Product Catalog Handling
© 2011 SAP AG. All rights reserved. 3
Required SAP Applications and Company Roles
Required SAP Applications SAP SAP enhancement package 3 for SAP ERP 6.0
Company Roles Retail Sales Person Retail Store Manager Retail Warehouse Clerk Accounts Payable Assistant Accounts Receivable Assistant
© 2011 SAP AG. All rights reserved. 4
Process Flow DiagramSales Order / Backorder Processing and Rescheduling
Ret
ail
War
ehou
se
Cle
rkR
etai
l Sto
re
Man
ager
Ret
ail S
ales
Pe
rson Standard Order/
Rush Order/ Third Party
Order
Analyze Sales Document
Rescheduling
Backorder Processing and Rescheduling
Monitor the Returns Stock
after Distribution
Dirstibute Returns Stock to Backorders
Reschedule Sales
Documents
Credit Limit Check
Availability Check
Run CATT Monitor the Returns Stock
© 2011 SAP AG. All rights reserved. 5
Sales Order: Alternatives
A Sales order is a customer request to the company for the delivery of goods or services at a certain time. The request is received by a sales area, which is then responsible for fulfilling the order.
Standard order:Merchandise will be collected or rather delivered and invoiced afterwards.
Rush order:Merchandise will be collected or rather delivered imme- diately and invoiced afterwards.
Third-party order:Merchandise will be delivered directly by the vendor to thecustomer. The ordering enterprise invoices to the customer
Cash sales order:Merchandise will be collected and payed immediately.
© 2011 SAP AG. All rights reserved. 6
Options in the order creation - 1
Cross Selling: due to the entered article additional related articles aresuggested
Dynamic Product Proposal: due to the entered customer the articles (History, PP...) connected with this customer number are suggested
© 2011 SAP AG. All rights reserved. 7
Options in the order creation - 2
The credit limit check is a check, whether a customer has already covered his credit limitand which consequences are connectedwith it (warning, fault, delivery block). This check can be carried out in every sales document.
The delivery of a product to a delivery date is only possible if this product is available for all processing steps to be carried out before the delivery.
To guarantee this the availability check is used in the order.
© 2011 SAP AG. All rights reserved. 8
Backorder Processing
Backorder processing with a selective list for sales
documents
Select and process backorders for a particular
article
Manual processingAssignment of the ATP-
quantities
Check the returns stocks on goods not damaged and not used
Listing of relevant requirements for sales documents
© 2011 SAP AG. All rights reserved. 9
Rescheduling
Selection of the open sales document Positions of the selected article
and availability check
Analysis of the last rescheduling run
© 2011 SAP AG. All rights reserved. 10
“Customer billing document” is an umbrella term for invoices, credit memos, debit memos, pro-forma invoices, and cancellation documents.
Billing represents the final processing stage for a business transaction in Sales and Distribution
Customer Billing Document
© 2011 SAP AG. All rights reserved. 11
Process Flow DiagramCustomer Billing Document
Ret
ail S
ales
Per
son
Generate Preceeding
Documents via ECATT
Create Billing Documnet Online
on the basis of the Outbound
Delivery
Incoming Payment in FI
Generate Collective billing Document in the
Background
Alternative 1
Alternative 2
© 2011 SAP AG. All rights reserved. 12
The milestone billing in the billing plan is used for the payment processing of a deposit.
Milestone billing means, that the total value, which should be invoiced, is divided in several partial amounts in the billing plan (percentage / absolute), they are to be paid at certain dates.
A milestone billing is a schedule with particular billing dates.
Payment Handling
© 2011 SAP AG. All rights reserved. 13
Process Flow DiagramPayment Handling
Acc
ount
s R
ecei
vabl
e A
ssis
tant
Acc
ount
s Pa
yabl
e A
ssis
tant
Ret
ail S
ales
Per
son
Down Payment Agreement in
the Sales Oder
Print the Final Billing
Document (Screen)
Incomimg Payment for the Down Payment Request in FI
Clear the Payment that has already
been made in FI
Down Payment request in SD
Print the Down Payment Request (Screen)
Final Billing with Down Payment Clearing in SD)
Incomimg Payment in FI
© 2011 SAP AG. All rights reserved. 14
There are various reasons for returning goods:- The goods are damaged in some way so that they cannot
be transferred back into normal stock, but have to be returned to the vendor.
- The customer did not like the goods and wants to replace them. The goods can, however, be reused either fully or partially.
- The customer did not like the goods and wants their money back or a credit memo. The goods can be reused either fully or partially.
When the returned goods are received from the customer,they are initially posted into blocked returns stock. Thereturned goods are checked and a decision is made as to
what to do with them, for example: breakage stock (returnedto vendor or destroyed), staff sales, transfer to normal stock/distribution to backorders.
Customer Return
© 2011 SAP AG. All rights reserved. 15
Process Flow DiagramCustomer Return
Ret
ail S
ales
Per
son
Preparations
Execution
Transfer from Rerurns Stock
to Blocked Stock
Stock Control
Goods Issue for the Free of
Charge Subsequent
Delivery
Create a Delivery for the Free of Charge
Subsequent Delivery
Create a Returns Delivery
Full Transfer Postingto
Unrestricted-Use Stcok
Stock Control
Release the Returns for Subsequent Processing
Create a Return
Monitor the Returns Stock
Transfer from Blocked Stock
to Return Delivery
Storage location
Check the Document Flow
Create a Free of Charge
Subsequent Delivery
Remove the Billing Block
Issue the Credit Memo
Create Returns Order
Post the Goods Receipt for the
Returns
Post the Goods receipt for the
Returned Goods
Monitor the Returns Stock
Create a Return with Free of
Charge Subsequent
Delivery
Stock Display
Create Credit Memo
Release to Accounting
Create a Returns Delivery
Post the Returns Delivery
© 2011 SAP AG. All rights reserved. 16
Process of Returns Handling
Finance: Logistics:
Input of customer returnsCredit note or
Subsequent delivery free of charge
Stock
Stock correction (Input to blocked stock)
Following processes
Log. invoice verification
Input of customer returns
Goods receipt
Creation of customer returns order
Stock transfer posting
into unrestricted stock or
Dispatching to backorders
Transfer posting to returns stock
Following processes
Return delivery to vendor
Invoice verification
© 2011 SAP AG. All rights reserved. 17
Arrival of the return goods
Posting in blocked stock
Goods receipt posting
© 2011 SAP AG. All rights reserved. 18
Evaluation of the return goods
Control of the goods
Decision of further use
Transfer back tounrestricted stock
Transfer toreturns stock
© 2011 SAP AG. All rights reserved. 19
Additional Use I – Unrestricted Stock
Tranfer back to unrestricted stock
Allocate to open orders
© 2011 SAP AG. All rights reserved. 20
Additional Use II – Returns Stock
Transfer back to returns stock
Disposal
© 2011 SAP AG. All rights reserved. 21
Subsequent process
Return delivery to vendor
© 2011 SAP AG. All rights reserved. 22
As part of the subsequent settlement procedure, you can offer a reduced price, for example, when a customer buys certain quantities of particular articles together, uses a customer card for payment, or reaches or exceeds the sales volume in a period that has been agreed upon in advance.
Subsequent Settlement
© 2011 SAP AG. All rights reserved. 23
Process Flow DiagramSubsequent Settlement
Ret
ail S
ales
Per
son
8.3Rebate
Processing (in SD)
8Subsequent Settlement
8.3.3Update the
Sales Volume
8.3.2Create Rebate
Agreement
8.3.4Generate
‚New‘ Sales Volume
8.3.1.1Settlemenr of
the Agreement(s)
8.3.1Display the Status of Rebate
Agreement
8.3.4.1Create Sales
Order
8.3.5Display Sales Volume Data
8.3.4.2.3Document
Flow
8.3.4.3Create Billing
Document8.3.4.2.1
Create Delivery
8.3.4.2.2Create Transfer
Order and Corfirm with GI
8.3.4.2Outbound Delivery
8.3.6Display Drill
Downs
8.3.8Release
Agreement for Settlement
8.3.7Carry out partcial
Settlement
8.3.7.1Release Credit Memo Request for the Partial
Rebate Settlement
8.3.7.2Bill Credit
Memo Request for the Partial
rebate Settlement
8.3.9Create Final Settlement
8.3.9.2Bill Rebate Credit Memo Request for the Final Settlement
8.3.9.1Release Rebate Credit Memo Request for the Final Settlement
8.3.10Display Payment History
© 2011 SAP AG. All rights reserved. 24
Consignment goods are goods that are stored at a customer location but that are still owned by your company. From a planning point of view this stock is no longer available and is managed independently.
The customer is not obliged to pay for these goods until they remove them from consignment stock. Otherwise, the customer can usually return consignment goods that are not required.
Consignment processing is advantageous to both parties. Customers store the consignment goods at their own warehouses. The customer can access the goods in the consignment warehouse at any time. They are only billed for the goods when they are removed from the warehouse and only for the actual quantity taken.
Customer Consignment
© 2011 SAP AG. All rights reserved. 25
Process Flow DiagramCustomer Consignment
Ret
ail S
ales
Per
son
Reduce the Consignment
Stock at Customer
Alternative 1:Consignment Issue
Create Delivery
Alternative 2:Consignment Pick-Up
Optional Process after
Consignment Issue:
Consignment Returns
Billing or Credit Memo for the Consignment
Return Created
Remove the Billing Block Goods Receipt
Billing Goods Issue
Consignment Fill-Up
Create and Corfirm
Transfer OrderDocument Flow Consignment
Stock
© 2011 SAP AG. All rights reserved. 26
Customer contracts are outline customer agreements that display when goods are purchased within a certain time period.
Contracts are concluded with the customer so that the purchasing/production and sale of
goods can be estimated better, which in turn enables better conditions to be negotiated.
Customer Contract
© 2011 SAP AG. All rights reserved. 27
Process Flow DiagramCustomer Contract
Ret
ail S
ales
Per
son
Create Contract release Order
for Value Contract
Create Contract release Order for Quantity
ContractValue ContractQuantity
Contract
© 2011 SAP AG. All rights reserved. 28
The product catalog is the basis for printed and electronic catalogs. The catalog is maintained
in the SAP ERP System and can be transported to external systems and processed as
templates for print catalogs or electronic catalogs (CD-ROM or Internet). IDocs and
BAPIs are available for exporting the catalog data.
Product Catalog
© 2011 SAP AG. All rights reserved. 29
Process Flow DiagramProduct Catalog
Ret
ail S
ales
Per
son
Create a Product Catalog
Create Basic Data
Maintain Documents and
Texts in the Article Master
Add Articles Layout Areas
Manually
Pricing in the Product Catalog
Create a Layout
Hierarchy Manually
Create Lower-Level Layout
Areas
Determine the Pricing
Procedure
Create the Layout
Hierarchy of the Product Catalog
Customer Pricing
Procedure
Maintain Articles
Maintain Layout Areas
Maintain Texts and Documents for Articles and Layout Areas
Alternative: Create Layout
Hierarchy Automatically
Link between Promotion and
Product CatalogPromotional Sales Prices
Create Document Info
Records
Add Articles Layout Areas
Using the Default Article
Create a Promotion
Product Catalog
Create layout Hierarchy
Create Basic Data
© 2011 SAP AG. All rights reserved. 30
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.
IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation.
Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.
Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries.
Oracle is a registered trademark of Oracle Corporation.
UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.
Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.
HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.
Java is a registered trademark of Sun Microsystems, Inc.
JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.
© 2011 SAP AG. All rights reserved
Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company.
Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company.
All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.
The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG.
This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice.
SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.
SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence.
The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages.