sap purchasing/sales

SAP Purchasing/Sales Part II ASSIGNMENTS

SAP AG

R

R/3 Integration Model

R/3R/3Client/Server

ABAPClient/Server

ABAP

COControlling

COControlling

AAAsset

Accounting

AAAsset

Accounting

PSProjectSystem

PSProjectSystem

WFWorkflow

WFWorkflow

ISIndustry

Solutions

ISIndustry

Solutions

MMMaterials

Mgmt

MMMaterials

Mgmt

HRHuman

Resources

HRHuman

Resources

SDSales &

Distribution

SDSales &

Distribution

PPProductionPlanning

PPProductionPlanning

QMQualityMgmt

QMQualityMgmt

FIFinancial

Accounting

FIFinancial

Accounting

PMPlant

Maintenance

PMPlant

Maintenance

Arno van LumigMirjam van Kuijk

September 2009

Author: Farnas GahanbasMartin KönigIsabelle Schiffer

Student number: 208609521009082099880

Class: FIE4B

Learning Arrangement: Enterprise Resource Planning ERP ALA5

Tutor: Arno Van Lumig

Institute: Fontys, University of Applied Science

Study course: International Business and Management Studies

Study phase: Main Phase

Academic year: 2009/2010

Place and Date: Venlo, 11th December 2009

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1 Table of contents

1 Table of contents.....................................................................................................................12 Introduction.............................................................................................................................33 General remarks......................................................................................................................44 Organizational structure..........................................................................................................55 Master data purchasing process..............................................................................................6

5.1 Introduction......................................................................................................................65.2 Material master data.........................................................................................................65.3 Vendor master data........................................................................................................115.4 Pricing master data.........................................................................................................165.5 Default settings...............................................................................................................185.6 Bank account posting.....................................................................................................195.7 Introduction....................................................................................................................215.8 Basic purchasing process...............................................................................................215.9 Alternative purchasing process......................................................................................21

6 Executing purchasing process in SAP..................................................................................266.1 Introduction....................................................................................................................266.2 Availability and stock quantity checking.......................................................................266.3 Creating purchase requisition.........................................................................................286.4 Selecting potential vendors............................................................................................297.5 Creating RFQ.................................................................................................................306.5 Maintain quotation.........................................................................................................336.6 Creating info record.......................................................................................................356.7 Assigning source of supply............................................................................................366.8 Creating purchase order.................................................................................................376.9 Creating confirmation....................................................................................................426.10 Creating shipping notification....................................................................................426.11 Creating goods receipt................................................................................................446.12 Recording inspection result........................................................................................49Creating usage decision............................................................................................................50Creating usage decision............................................................................................................516.13 Creating invoice..........................................................................................................537.15 Releasing invoice.............................................................................................................586.14 Creating outgoing payment.........................................................................................59Summary of the postings..........................................................................................................616.15 Creating shipping notification remaining new materials............................................626.16 Creating goods receipt................................................................................................646.17 Recording inspection result........................................................................................696.18 Creating usage decision..............................................................................................706.19 Creating invoice..........................................................................................................716.20 Creating outgoing payment.........................................................................................74

7 Master data sales process......................................................................................................777.1 Customer master data.....................................................................................................777.2 Master data new customer..............................................................................................797.3 Extending distribution channel material........................................................................807.4 Pricing master data.........................................................................................................82

8 Process description sales and distribution............................................................................838.1 Introduction....................................................................................................................838.2 Basic sales process.........................................................................................................83

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8.3 Alternative sales process................................................................................................839 Executing sales and distribution process in SAP..................................................................89

9.1 Introduction....................................................................................................................899.2 Creating inquiry.............................................................................................................899.3 Analysis results..............................................................................................................919.4 Creating quotation..........................................................................................................939.5 Redistribution available quantities.................................................................................959.6 Creating order.................................................................................................................999.7 Creating outbound delivery..........................................................................................1029.8 Creating picking...........................................................................................................10510.9 Creating goods issue......................................................................................................1079.9 Creating invoice/bill.....................................................................................................1119.10 Creating stock transfer order.....................................................................................116Creating outbound delivery plant Maastricht.........................................................................1209.11 Creating picking plant Maastricht.............................................................................1239.12 Creating goods issue plant Maastricht......................................................................1249.13 Creating goods receipt plant Amsterdam..................................................................1289.14 Adapting sales order quantities.................................................................................1309.15 Creating outbound delivery......................................................................................1319.16 Creating picking........................................................................................................1339.17 Creating invoice/bill.................................................................................................1399.18 Creating incoming payment......................................................................................1459.19 Summary of the postings..........................................................................................151

10 Completion......................................................................................................................153

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2 Introduction

Below the SAP exercises of this course will be given. These exercises have to be dealt with completely. A mark will be assigned only in case the complete processes have been executed.

The SAP-exercises will be carried out for the wholesaler Pulles. Pulles cooperates closely with the vendor/supplier: van Lierop. Van Lierop is a well-known player on the market for electronic equipment and Pulles is one of the major customers.Despite this close cooperation the quality control has not been shifted to van Lierop. The quality control remains the responsibility of Pulles. The quality control is performed at the goods receipt.Pulles has organised a quality management system in the plant in Maastricht. The plant in Amsterdam is lacking this facility.The customer: Luiten is a major customer of Pulles. In addition to these existing trading partners, additional trading partners will be created by you.

Following the assignments, the criteria, which apply for the determination of the mark, are given.Next the logon procedure, to logon to the SAP system, is given. The sign in codes will be handed out at the beginning of the learning arrangement.Finally a number of default settings and other useful hints are given.

For a global time scedule see the course manual.

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3 General remarks

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4 Organizational structure

The following table shows the logon on data of Pulles company 41

Logon data ValueClient number 910User name FON041Password FON041

The table below shows the organizational structure of the company with all departments included.Organisational unit/part ValueCompany code CC41Sales department SO41Sales office DS41 IS41Sales group D41 I41Purchasing department PO41Purchasing group M41 A41Plant PM41 PA41Country plant NL NLLanguage plant NL NLStorage location SM41 SA41Distribution channel 01 02Division 01 02 03

Additional distribution channel:For exports to countries beyond the Netherland, the company could assign agents to create a distribution network within a foreign country. An agent serves as link between wholersaler and the customers.

Additional division:An additional division which would fit into a wholesale company would be HiFi equipment. This refers mainly to smaller electronics such as DVD players, speakers, TV sets and accessoires.

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5 Master data purchasing process

5.1 Introduction

5.2 Material master data

5.2.1 Introduction

The table below shows several departments of the company and additional data fields that these department includes as information in the SAP system.

Organisational level/department Additional data fieldBasic Product allocationSales Cross distribution

chain material statusPlant Hazardous material

numberPurchasing Order UnitQuality management Catalog profileAccounting Price determination

In the following the additional data fields are explained:

Product Allocation: The procedure of product allocation determines how a product allocation is carried out. An info structure is assigned which influences the criteria used when product allocations are stored in the planning hierarchy. There is also the possibility of assigning several objects to the product allocation. Each object then has its own validity period. The corresponding planning hierarchy contains the product allocation which is determined for each object.

Cross distribution chain material status: For all distribution chains the cross distribution chain material statues indicates whether the material my be used in individual functions in Sales and Distribution. Through this status the usability of the materials is restricted for the distribution chains.

Hazardous material number: The hazardous material number indicates whether the material is hazardous or dangerous. This number assigns hazardous material or dangerous goods data to the specific material.

Order Unit: This field indicates the unit of measure in which the material is ordered. It differs from the base of unit measure.

Catalog Profile: Is a key of the report schema which is the basis for the message. It is used in plant maintenance and customer service.

Price determination: This data field provides information about how the price is determined. Two options how to determine it are given. Either the activity-based determination which calculates the moving average price. Or the single-/multi level price which calculates the periodic unit price.

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Additional department relevant in the material master record:Theoretically, there is a possibility to found a customer service and repair department, assuming that there is none until now. This department would handle customer complaints and goods for repair.

Additional material type:An additional material would be raw material which is needed for the company to produce finished goods.

5.2.2 Material list

The screenshot above shows a part of the material list provided through material master data. The material Standard Lightning Purchase/Sales are shown for the two production plants in Amsterdam PA41 and Maastricht PM 41. 42 indicates the material number for the Standard Lightning Purchasing/Sales. (Name will be changed later into: Standard Lighting Purchasing/Sales)

5.2.3 Master data existing material

5.2.3.1 Introduction

5.2.3.2 Changing material master data existing material

The following table shows the material master data of the existing material, which can be recognized through the material number 42.Organisational level Data field ValueBasic Material (number) 42

Base Unit of Measure STMaterial group 01Division 03GenItemCatGroup NORMGross weight 4Net weight 3Weight Unit KGLanguage ENMaterial description Standard Lighting Purchasing/SalesLanguage DEMaterial description Standard Lampe Einkauf/VerkaufLanguage NLMaterial description Standaard lamp inkoop/verkoop

Sales department Base Unit of measure STDelivering plant PM41Country (code) NL NLTax category (code) MWST MWST

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Tax classification (code) 1 1Net price condition (PR00)

Scale quantity Amount1 200PM41 PA41

Plant Base Unit of measure ST STAvailability check 02 02Loading group 0001 0001

Purchasing department

Purchasing group M41 A41Tax indication f. material 1 1GR processing time 100 100

Quality management dep.

QM proc. active YQM control key 0007 0000Inspection setup Y NInspection type 01 10Active Y YPost to inspection stock Y - Inspection with mat. specification

Y Y

Accounting department

Currency EURCurrent period 09 2009Valuation Class 3100 3100Price control SPrice unit 1 1Standard price 65,00 60,00

Description of the data fields (the F1 function was not possible at this time):

Base Unit of Measure: is the base for the stock in which the materials are managed. Quantities which are entered into the system are converted into the base of unit of measure. It is also possible to define alternative units of measure and the corresponding conversion factor.

Delivery Plant: Indicates from which plant the material will be delivered to the customer. This plant is automatically copied into the sales order as a default value.

Scale Quantity: The scale quantity might be for example the number of pieces to which a scale refes.

Net Price Condition: Depending on the document the net price can be determined by 3 different tables. These tables stand for the net price conditions.

Tax Indication for material: The tax indication for material is used to determine the tax code for the purchasing process. Within the process of price determination this indicator helps to facilitate this process.

Goods receipt processing time: This data fields indicates how many workdays are required for the inspection and placement into storage of the material after receiving it.

Inspection Setup: Within SAP this indicator is set when an inspection setup for the material and plant exists. If this setup is activated, also a control key has to be stored.

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Quality Management control key: As mentioned before for the inspection setup a control key has to be stored. Through this key the conditions which are valid for the quality management are determined.

Standard Price: This data field indicates that the evaluation of the material stocks at this standard price means that the goods movements are valuated at the same price throughout an extended period.

5.2.3.3 Quality control master data existing material

The following table shows the quality control data for the existing material.Material number

Plant Master inspection characteristic (number)

Short text inspection characteristic

(Inspection) Method

Short text

42 PM41 1000000 Maximun tolerable current

MAXCUR Measuring maximum tolerable current

Quantitative dataMeasurement unit A

Lower plausible limit 8Upper plausible limit 12

Target value 10

5.2.4 Material master data new material


Pulles is interested in extending its lighting product range. Lighting materials range from basic lighting equipment to very expensive lighting systems. Therefore, a new material has to be created. The master data for this material is shown in the table below and will be entered into the SAP system.Organisational level Data field ValueBasic Base unit of measure ST

Gross weight 13Net weight 12Weight unit KGDescription (English) Solar PanelDescription (Dutch) Solair plaatje

Sales department Delivering plant PM41Net price condition (Sales price)

Scale quantity Amount1 80010 650PM41 PA41

Purchasing department Purchasing group M41 A41Goods receipt processing time 100 100

Accounting department Price unit 1 1Standard price 600 500

5.2.4.2 Creating master data new material

The advantage of an external number assignment is, that the number means something for the user of the system, as the user is able to assign this number on his/her own. A disadvantage would be that chosen terms might already been used by other records. If an internal number

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assignment is used this problem is not likely to occur, since the system itself will choose and set the numbers.An advantage of the creation of a master record centrally is, that it is easier to restrict the system. One central department can create these records, which is positive as this department has the full overview of the master records. A disadvantage would be, that the workload of this single department is pretty high and the communication level at the company must be very advanced to avoid communication errors. The creation of master records decentrally would mean less burocracy. Nevertheless the usage by several users might be confusing and end up in faults of records.

The table below shows the total master data of the new material, indicates through the material number 772.Organisational level Data field ValueBasic Material (number) 772

Base Unit of Measure STMaterial group 01Division 03GenItemCatGroup NORMGross weight 13Net weight 12Weight Unit KGLanguage NLDescription Solair plaatje 130WLanguage ENDescription Solar panel 130 W

Sales department Base Unit of measure STDelivering plant PM41Country (code) NL Netherlands

Tax category (code) MWST Output Tax

Tax classification (code) 1 Full taxNet price condition PR00(sales price)

Scale quantity Amount1 80010 650PM41 PA41


Purchasing department Purchasing group M41 A41Tax indication f. material 1 1GR processing time 100 100

Quality management department

QM proc. active YesQM control key 0007 0000Inspection setup Yes NoInspection type 01 10Active Yes YesPost to inspection stock Yes -Inspection with mat. specification

Yes Yes

Accounting department Currency EURCurrent period 09 2009Valuation Class 3100 3100Price control SPrice unit 1 1

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Standard price 600 500

5.2.4.3 Quality control master data new material

5.2.4.3.1 Introduction

The table shows the quality control master data for the new material.Material number

Plant Master inspection characteristic (number)


Inspection method (code)

Short text

772 PM41 1000004 Inspection of solar item

ISI Inspection of solar item

Quantitative dataMeasurement unit mV

Lower plausible limit 10Upper plausible limit 20

Target value 15

5.2.4.3.2 Creating quality control master data new material

The screenshot abve shows the material inspection characteristics, which have been set for the new material before.

The screenshot above shows that the material specifications for the new material have been set. The inspection method, which is indicated through the short text is displayed as well as the plant PM, where the quality management takes place.

5.3 Vendor master data

5.3.1 IntroductionThe following table shows organizational levels of the company and additional data fields, which could be important.

Organisational level/Department Additional data fieldAddress RegionAccounting Withholding Tax Code

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Purchasing SalespersonAdditional data fields:

The data field Region is a possible addition to the vendor master data displayed under addresses. It allows to appoint specific geographic regions (e.g. Limburg in the Netherlands) to a selected vendor and refers specificly to general adress data.

Under Withholding tax code a default per business partner can be defined. Since tax information is of explicit interest for the finance department it is integrated under accounting.

As additional information for purchasing the Salesperson datafield highlights a specific contactperson for dealings with this specific vendor. Only the purchasing department is in need of this specific information.

5.3.2 Vendor list

The screenshot above shows the vendor list, with the different vendors of the company Pulles. The vendor number, which is important for any entries in the SAP system is mentioned (34) as well as the address of the vendor.

5.3.3 Master data existing vendor


5.3.3.2 Changing vendor master data

The table below shows tha master data of the existing vendor, which has to be adjusted in the system.Organisational level Data field ValueAddress Vendor (number) 34

Title Company

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Name Van LieropSearch term 1/2 LIEStreet/House number Hoeksestraat 12Postal code 1234 ERCity CranendonkCountry NLLanguage Dutch

Accounting department Reconciliat. account 160000Payment terms 0002Tolerance group PULL

Purchasing department Order currency EURTerms of Payment 0002Incoterms EXW ExWorksSchema group, vendor 03Pricing date control 1Purchasing group Has to be removedOrdering address 34Vendor 34Invoicing Party 34

The screenshot above shows the changed master data of the vendor. As already indicated above, the purchasing group of the vendor has to be removed, which is displayed in the screenshot.

Description of data fields:

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Country: Identifies the geographic location of a vendor in code (e.g. NL) and text (e.g. Netherlands).

Language: Shows the native language of the vendor in order to simplify communication.

Reconciliation account: Account on which movements of sub ledgers, e.g. debtors, creditors and investments are notified.

Terms of payment: Appoints terms of payment for transactions with vendors according to agreement.

Incoterms: Incoterms are globally accepted regulations for the international movement of goods. By using this field the purchaser is able to appoint procurement contracts and sellers' duties (e.g.Ex Works).

Schema group vendor: Determines the pricing procedure, which is used in purchasing documents of a specific vendor. This schema is appointed by reference to a certain schema group. Consequentaly the conditions can differ between different documents.

Purchasing group: By utilizing this data purchasing activities of a purchasing group can be analysed. An overview of receipts, receipt positions and their allocation can be realized.

5.3.4 Master data new vendor


The table below shows the master data of the new vendor, which will be entered in the SAP system.Organisational level Data field ValueAddress Title Company

Name KonigSearch term KONStreet/House number Parkstraat 13Postal code 2500 AACity Den HaagCountry NL (Netherlands)Language Dutch

Accounting department Payment terms 0002Purchasing department Terms of Payment 0002

Purchasing group Has to remain empty

Advantages and disadvantages of the creation of a new vendor:

Advantages of creating new vendor using a reference vendor: ideally abridges the creation process by carrying over default values from the system counteracts errors made in haste in particular in regard to standard data streamlines the data input when dealing with vendors with similar backgrounds

Disadvantages of creating new vendor using a reference vendor: abets wrong inputs and by doing so requires prudence user can continue to spread previously wrong data to new vendor master data can lead to longer input times

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5.3.4.2 Creating master data new vendor

As a reason of the process above a new vendor Konig does exist now. The vendor number 145, which is important for any entries in the SAP system is shown, as well as the address of the vendor.

The following table shows the master data of the new vendor, which has now been entered in the system.Organisational level Data field ValueAddress Vendor (number) 145

Title CompanyName KonigSearch term 1/2 KONStreet/House number Parkstraat 13Postal code 2500 AACity Den HaagCountry NLLanguage Dutch

Accounting department Reconciliat. account 160000Payment terms 0002Tolerance group PULL

Purchasing department Order currency EURTerms of Payment 0002Incoterms EXW ExWorks

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Schema group, vendor 03Pricing date control 1Purchasing group Has to remain emptyOrdering address 145Vendor 145Invoicing Party 145

5.4 Pricing master data

5.4.1 Price element net purchase price: P000

The table below is important for the net price conditions, which will be entered in the SAP system.Vendor (number)

Vendor name

Material (number)

Description Plant Valid from Condition type

Name Amount

34 Van Lierop

42 Standard Lighting Purchasing/Sales

PM41 13.08.2005 P000 Net price

65PA41 13.08.2005 60

The screenshot above shows the net price conditions of the existing material. The vendor for this material is Van Lierop as indicated through the vendor number at the top of the screenshot. The material number indicates that this screenshot refers to the existing material number 42.

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This screenshot as well shows the net price conditions for the existing material for the vendor Van Lierop. Both indicated through the referring numbers. The difference to the first screenshot is the amount of 60,00 in the lower part of the screenshot. The price difference is due to different plants, which the screenhots refer to.

5.4.2 Price element freight costs: ZFRA

The screenshot above shows that there are not freight conditions for the plant in Amsterdam yet. Since the procedure did not result in a value for the freight costs, the freight costs for both plants (PM41 and PA41) had to be created first. This was handled through application of the “create” function. The screenshot documents the first step of the creation process.

In a second step the existing vendor (34) was entered into the system. As a result of the process above the freight conditions had been entered in the system. The vendor number 34 as well as the description show that this screenshot refers to the vendor Van Lierop. No amount has been set yet for a quantity of 1KG.

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Finally a specific amount was entered on basis of the given information (2,00 EUR/1 KG). Incoterms are special trade terms, which are given rules that traders have to follow. These are referred to for this vendor.

The freight costs for both plants (PM41 and PA41) can now be displayed under the overview. In this case the screenshot only shows the freight conditions for Plant PA41, still the conditions for both plants are equal.

The table below indicates the freight costs for both plants for the existing vendor.Purch. organization Plant Valid on Inco

termsVendor Amount Unit of measurement

PO41 PM41 11.09.2009 EXW34

2,00 KGPA41 11.09.2009 2,00 KG

5.4.3 Price element input tax: MWST

This table shows the data for the tax information.Input tax Destination country Tax ind. for. Mat. Tax code Valid on Amount UnitMWST NL 1 V2 11.09.2009 19,000 %

5.5 Default settings

5.5.1 Introduction

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In the screenshot above there are the different parameters for the default settings in SAP are shown. The purchase group setting are set to A41 in this case, as the screenshot shows.

5.6 Bank account posting

5.6.1 Introduction

In order to be able to execute its primary processes, Pulles should have a positive bank account. For that reason, a business plan is discussed with the account manager of the bank and a loan is granted to Pulles at an amount of 100.000 Euro.

5.6.2 Posting on the bank account

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The screenshot above shows that the company Pulles raise a loan of the amount of 100.000 Euro. The account affected by this process is the loan account 46020, which is indicated through the account number at the top of this screenshot. Furthermore, it is indicated that the loan is due after one year resulting in a deduction of this amount from the loan account.

5.6.3 Posting document

As a reason of the raise of a loan in the step before the account of the loan 46020 is affected negatively. Whereas the bank account is raised at the amount of 100.000. This is the exact amount that the loan shows. The amount of 100.000 Euro is now available for the company to operate with.

5.6.4 Balance sheet

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The screenshot above shows the Balance Sheet of the company CC41. It normally should show all accounts that the company has an activa and passiva. Due to format errors this is actually not possible. As a reason of the process described before only the two accounts affected by this step are shown. The accounting document already showed that through the raise of the loan this account decreased or was credited and the bank account increased, was therefore debited.

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6 Process description purchasing

6.1 Introduction

6.2 Basic purchasing process

6.3 Alternative purchasing process

6.3.1 Description purchasing process Stepps

The following graphic shows the process flow diagram of the new material.

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In the following the process data flow of the new material will be explained:

Availability and stock quantity checkingThe logistics department is responsible for the availability of the materials. On a regular basis, the availability is checked.

Creating purchase requisitionAs a result of the availability check, the logistics department creates a purchase requisition. The new material is requested because no stock is available at all. The purchase requisition is sent to the purchasing department, where the vendor for the material will be determined. Since the purchase requisition covers materials for both plants, the purchase requisition is sent to the purchasing group A. The standard policy within Pulles is that purchase requisitions, dealing with both plants, have to be dealt with by the purchasing group A.

Selecting potential vendorsA purchase employee determines potential vendors for the materials of the purchase requisition. For the new material, only the new vendor will be considered.

Creating RFQThe purchase employee sends a RFQ for the new material to the new vendor. The RFQ distinguishes between plant PM41 and PA41 In this way the vendor can offer different prices, depending on the plant. The RFQ informs the vendor about the price elements and the price calculation the vendor has to meet.

Maintain quotationThe prices offered are different for both plants. The quotations are entered in the SAP system by the purchasing employee.

Creating purchase orderIn case of the new material, the purchase order is based on the quotation, offered by the new vendor. The purchase order is created for the new vendor.The vendor is requested to send a confirmation, as soon as the purchase order is received.The vendor is also requested to send a shipping notification, shortly before they deliver the materials. This shipping notification has to inform about the arrival date and the quantity of the material to be delivered. The amount of the shipping depends on the purchase order.

Creating confirmationOnly the new vendor sends a confirmation, indicating that they will be capable of delivering the materials ordered for the requested delivery date.

Creating shipping notificationIt turns out that the new vendor is not capable of delivering the ordered quantity in time. Therefore, a shipping notification is received. The quantity of the shipping notifications may vary depending on the vendor’s ability to supply. At a later stage a second shipping notification will be issued for the remaining quantity (see the last process steps). If another notification will arrive this has to be adjusted with the purchase order created before.

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Creating goods receiptThe new material, which is received at the plant PM41 from the new vendor, is stored in the quality control stock area of the storage location SM41. The new material, which is received at the plant PA41 from the new vendor, is stored in the storage location SA41 as unrestricted use stock.

Recording inspection resultThe quality inspection occurs according to the specifications of the quality management department at the plant PM41. For that purpose the material is forwarded from the quality control stock area to the quality inspection area. Of course the new material have to meet different specifications and will be inspected independently. The result of the quality inspection is recorded for the new material ordered.

Creating usage decisionBased on the quality inspection results the usage decision for the new material for plant PM41 is taken. All materials will be accepted and forwarded to the unrestricted use stock.

Creating invoiceThe invoices are sent by the new vendor after the goods receipt for both plants have occurred. One invoice is received from the new vendor, covering both goods receipts.

Releasing invoiceThe release of the invoice of the new vendor is postponed until the remaining materials have been received as well.

Creating outgoing paymentThe final document of the outgoing payment is created by the new vendor.

These processes might be repeated for several shipping notifications, this however depends on the purchase order. If the purchase order is divided into e.g two halfs the process described above will be repeated twice.

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6.3.2 Additional information6.3.3 Process data flow diagram new material

6.3.4 Description process Stepps

The tables below describe the process steps and explain, which documents are created in which process and what their purpose is.

Documents created by SAP

Name process step Document name Document name Document nameCreating purchase requisition Purchase requisition --- ---Creating RFQ RFQMaintain quotation QuotationQuality inspection area Quality controlCreating purchase order Purchase orderCreating shipping notification Shipping notificationCreating goods receipt Material document

goods receiptInspection lot doc. Financial document

(goods receipt)Creating invoice Invoice --- Financial document

(invoice)Creating outgoing payment --- Financial document

(outgoing payment)

Preceding SAP documents

Preceding process step Consecutive process step Document name, referred to

Creating purchase requisition Creating RFQ purchase requisition

Creating RFQ Maintain quotation RFQCreating quotation Creating purchase order quotationCreating purchase order Creating confirmation Purchase orderCreating purchase order Creating shipping notification purchase orderCreating purchase order Creating invoice purchase orderCreating shipping notification Creating goods receipt shipping notificationCreating goods receipt Recording inspection results Inspection documentRecording inspection results Creating usage decision Inspection documentCreating invoice Release of invoice IncoiceCreating invoice Creating outgoing payment invoice

External documents

Name process step External document Incoming/outgoingCreating RFQ RFQ OutgoingMaintain quotation Quotation IncomingCreating purchase order Purchase order OutgoingCreating confirmation Confirmation IncomingCreating shipping notification Shipping notification IncomingQuality inspection area Quality management data IncomingCreating goods receipt Goods receipt IncomingCreating invoice Invoice IncomingCreating outgoing payment Outgoing payment Outgoing

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7 Executing purchasing process in SAP

7.1 Introduction

7.2 Availability and stock quantity checking

7.2.1 Availability check

The tables below shows the availability check of the new material for both plants.

Plant PM41New material 772Date MPR element MRP element

dataReceived/ required quantity

Confirmed

24.09.2009 Stock SM41 0 -

Plant PA41New material 772Date MPR element MRP element


Confirmed

24.09.2009 Stock SA41 0 -

This screenshot displays the scope of check which shows what is checked while the availability check is proceeded. The checking rule here is the indicator for all the aspects, which are checked during the quality control. Another number would indicated other aspects of quality control.

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End lead time:Availability is only checked up to the finish of end lead time. If the material availability date is calculated on the basis of the current date to lie after the end lead time for the item, the item itself can be confirmed despite insufficient stock being available. In this case, the system assumes that any quantity requested by the customer can be procured by the material availability date and considers the goods to be available.

7.2.2 Stock quantity

In the following the stock quantity of the new material in both plants is shown. Obviously there is no existing stock for this material.

New material number 772Stock type Plant PM41 Plant PA41Unrestricted use 0 0Quality inspection 0 0On order stock 0 0Cust. Inquiries 0 0Cust. Quotations 0 0Sales orders 0 0Schd. for delivery 0 0Stock in transit 0 0Restricted-use 0 0

7.2.3 Material requirements

The table below shows the quantity of the materials that will be purchased.Material (number)

Quantity Plant Storage location

42 50 PM41 SM4110 PA41 SA41

772 50 PM41 SM4110 PA41 SA41

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7.3 Creating purchase requisition

As a result of empty stocks, there will be a purchase of material.Purchase requisition number 10000165Item Material

(number)Quantity Plant Storage

locationPurchasing dept.

Purchasing group

Delivery date

Tracking number

10 42 50 PM41 SM41 PO41 A41 26.10.2009 910CC4120 10 PA41 SA4130 772 50 PM41 SM4140 10 PA41 SA41

This screenshot displays the purchase requisition 10000165. That means it is shown which material is purchased for which plant. Furthermore the quantity of the purchase orders is also displayed for the different materials and for the different plants. The purchase requistion number is important for further processing.

The tables below show that there has been a purchase of the new material in both plants.Plant PM41New material 772Date MPR element MRP element


Confirmed

24.09.2009 Stock - 0 - 03.02.2010 PurRqs 100000165/00030 50 -



Confirmed

24.09.2009 Stock - 0 - 03.02.2010 PurRqs 100000165/00040 10 -

Material (number)

Plant Delivery date Goods receipt processing time

Date, on which material will be available

42 PM41 26.10.2009 100 11.02.2010PA41 26.10.2009 100 11.02.2010

772 PM41 26.10.2009 100 11.02.2010PA41 26.10.2009 100 11.02.2010

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7.4 Selecting potential vendors

Material (number) Plant Potential vendor (Net price) Condition42 PM41 34 (van Lierop) 65,00

PA41 34 60,00772 PM41 -- --

PA41 -- --

The reason that there is no information available for the new material is that the company does not yet have any vendor for the new material but has to inquire this from potential vendors.

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7.5 7.5 Creating RFQ

The table below shows the information for the RFQ creation for the new vendor.RFQ number

Vendor number

Vendor name

Purchase requisition number

Purchase requisition line item number

Material (number)

Description Plant

6000000106 145 Konig 10000165 10 42 Standaard lamp inkoop/verkoop

PM4120 PA4130 772 Solair plaatje PM4140 PA41

Collective Number 902CC41 is only for external purposes.

The table below shows that form the existing vendor only the new material will be purchased for both plants.RFQ number

Vendor number

Vendor name

Purchase requisition number

Purchase requisition line item number

Material (number)

Description Plant

6000000107 34 Van Lierop

100000165 30 772 Solair Plaatje PM4140 PA41

Collective Number 903CC41 is only important for external purposes.

The screenshot above shows the workflow/ document flow of the three purchasign documents which were already set up. As RFQs have been created in the step before these are also displayed in this screenshot. The purchase document number indicates to which document these RFQs refer to.

This screenshot displays the first RFQ referring to both the old and the new material. The quantity which is ordered is shown as well, as the delivery date, the purchasing group and plant. As the vendor number at the top indicates, this RFQ is for the new vendor Konig.

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The second screenshot displays the RFQ only for the new material which was made. The vendor number 34 shows, that this RFQ is for the existing vendor.

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The screenshot above shows the second query, referring to the new and old material from the new vendor (145). Both screenshots result in the two RFQs which were drawn before.

This screenshot above shows the first query for the new material which was made for the old vendor (34). It refers only to the new material as the new vendor only will supply the new material.

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7.6 Maintain quotation

The table below shows the quotation for the new vendor.Quotation number

Vendor (number)

Material number

Description Plant Price element

Name Amount

600000106

145 42 Standaard lamp inkoop/ verkoop

PM41 P000 Net Price 70 (€)R000 Discount on Net 2 (%)

PA41 P000 Net Price 70 (€)R000 Discount on Net -

772 Solair plaatje PM41 P000 Net Price 865 €R000 Discount on Net 2 (%)

PA41 P000 Net Price 865 €R000 Discount on Net -

The table below shows all necessary data for the quotation of the existing vendor.Quotation number

Vendor (number)

Material number

Description Plant Price element

Name Amount

6000000107

34 772 Solair Plaatje PM41 P000 Net Price 870 €R000 Discount on Net -

PA41 P000 Net Price 870 €R000 Discount on Net -

The screenshot above shows the quotation referring to the new vendor and to both materials. It also shows that the RFQ only refers to the new vendor, indicated through the number and the name next to the vendor number field.

This screenshot shows the RFQ only referring to the existing vendor and the new material. Only the new material will be purchased from this vendor.

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7.6 Creating info record

The table shows the line items for the existing material and the new vendor. This is accepted in contrast to the new material from the new vendor and the new material of the old vendor. Therefore, these fields remain empty.

Quotation number

Vendor (number)

Line item number

Material (number)

Plant Accepted

6000000106 145 10 42 PM41 B20 PA41 B30 772 PM41 -40 PA41 -

Quotation number

Vendor (number)

Line item number

Material (number)

Plant Accepted

6000000107 34 10 772 PM41 -20 PA41 -

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7.7 Assigning source of supply

7.7.1 Introduction

7.7.2 Calculation purchasing prices existing material

The table below shows the calculation of the price for the existing material, for both plants and the existing vendor.

Material Plant Vendor (name)

Price element

Name Amount Gross weight (KG)

Condition value

Standaard lamp Inkoop/Verkoop

PM41 Van Lierop

P000 Net price 70,00 70,00ZFRA Freight costs 2 ,00 4 8,00

Net price excl. input tax 78,00MWST Input tax 19 % 14,82

Net price incl. input tax 92,82PA41 P000 Net price 70,00 70,00

ZFRA Freight costs 2,00 4 8,00Net price excl. input tax 78,00

MWST Input tax 19 % 14,82Gross price incl. input tax 92,82

The table below shows the same data as the table before, but refers to the new vendor Konig.Material Plant Vendor

(name)Price element

Name Amount Gross weight (KG)

Condition value

Standaard lamp Inkoop/Verkoop

PM41 Konig P000 Net Price 70,00 70,00R000 Discount % on Net 2,00 68,60ZFRA Freight costs 2,00 4 8,00


Net price incl. input tax 62,046PA41 P000 Net Price 70,00 70,00

ZFRA Freight costs 2,00 4 8,00Net price excl. input tax 78,00


7.7.3 Source of supply assignment

Purchase requisition number 10000165Item Material

(number)Quantity Plant Storage location Vendor Info record

10 42 50 PM41 SM41 Van Lierop B20 10 PA41 SA4130 772 50 PM41 SM4140 10 PA41 SA41

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7.8 Creating purchase order

7.8.1 Introduction

7.8.2 Releasing new material

The new material will be released as the table below shows.Vendor (number)

Name Material (number)

Name Release By date

34 Van Lierop 42 Standard lightning Purchasing/Sales 01.01.2020145 Konig 772 Solar panels 01.01.2020

7.8.3 Creating purchase order existing material

Below the table shows the necessary data for the purchase order referring to the existing vendor.Purchase order number 4500000198 Vendor Van LieropItem Material

(number)Quantity Plant Storage location Purchase requisition number Line item

10 42 50 PM41 SM41 10000165 1020 10 PA41 SA41 20

7.8.4 Calculating purchasing prices new material

The table below shows the price calculation for the new vendor and the new material.Material (number)

Plant Vendor (number)

Price element

Name Amount Gross weight(KG)

Condition value

772 PM41 145 P000 Net Price 865,00 865,00ZFRA Freight costs 2,00 13 26,00


Gross price incl. input tax 1060,29

PA41 P000 Net Price 860,00 860,00ZFRA Freight costs 13 26,00

Net price excl. input tax 886,00MWST Input tax 19 % 168.34

Gross price incl. input tax 1054,34

The table below shows the data for the price calculations for the existing material and the existing vendor.

Material (number)

Plant Vendor (number)

Price element

Name Amount Condition value

42 PM41 34 P000 Net Price 65,00 70,00Net price excl. input tax 65,00


PA41 P000 Net Price 60,00 60,00Net price excl. input tax 60,00


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7.8.5 Creating purchase order new material

The data in the table below is important for the creation of the purchase order of the new material form the new vendor. The purchase order number will be important for following process steps.Purchase order number 4500000208 Vendor KonigItem Material

(number)Quantity Plant Storage location Quotation number Line item

10 772 50 PM41 SM41 6000000106 3020 10 PA41 SA41 40

7.8.6 Analysis results

The screenshot above shows the document flow referring to the different purchase order documents which have been established before. Each purchase document contains several line items that indicate the material and the quantity for delivery.

This screenshot shows the specific purchase order referring to the new material which has to be purchased form the new vendor, indicated at the top of the screenshot.

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In this screenshot the print preview of the purchase order is seen. This will be sent to the new vendor as indicated at the top of the purchase order.

The tables below summarize that the materials in plant Maastricht have to go through a quality inspection in contrast to those in plant Amsterdam.Purchase order number

4500000198 Vendor Van Lierop

Item Material Quantity Plant Storage location Stock type QA Control key10 42 50 PM41 SM41 Quality

inspectionDel. Release, invoice block

20 10 PA41 SA41 Unrestricted Use

No active functions, info message

Purchase order number

4500000208 Vendor Konig

Item Material Quantity Plant Storage location Stock type QA Control key10 772 50 PM41 SM41 Quality

inspectionDel. Release, invoice block

20 10 PA41 SA41 Unrestricted Use

No active functions, info message

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This screenshot shows the conditions for the first line item. It refers to the old material and the old vendor.

The screenshot above shows the conditions for the second line item which refers to the old material and the old vendor as well.

This screenshot is displaying the conditions for the new material and the new vendor. It refers the first line item of the purchase order.

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As last screenshot ths conditions of the second line item of the purchase order for the new vendor and the new material is shown

Plant PM41New material 772Date MPR element MRP element data Received/

required quantity

Confirmed

15.10.2009 Stock 0 -03.02.2010 POItem 4500000208/00010/0001 50 -

Plant PA41New material 772Date MPR element MRP element data Received/

required quantity

Confirmed

15.10.2009 Stock 0 -03.02.2010 POItem 4500000208/00020/0001 10 -

New material 772Stock type Plant PM Plant PAUnrestricted use 0,000 0,000Quality inspection 0,000 0,000On order stock 50,000 10,000Cust. Inquiries 0,000 0,000Cust. Quotations 0,000 0,000Sales orders 0,000 0,000Schd. For delivery 0,000 0,000Stock in transit 0,000 0,000As a matter of the purchase process before, there is now on order stock for the new material in both plants.

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7.9 Creating confirmation

7.10Creating shipping notification

Shortly before the goods will arrive, a shipping notification is received from the existing vendor. This shipping notification contains the arrival date and the quantity of the material of each purchase order line item. It turns out that this vendor is capable of meeting the quantity and delivery date. In this case study, the delivery date will become: current day + 2 days.

Inbound delivery number 180000180 Vendor Van Lierop Delivery date 17.10.2009Item Material

(number)Delivery quantity

Plant Storage location Purchase order number Line item

10 42 50 PM41 SM41 4500000198 1020 10 PA41 SA41 4500000198 20

The table below shows that the new vendor will separate the delivery of the materials, which is indicated through the delivery quantity.Inbound delivery number 180000181 Vendor Konig Delivery date 17.10.2009Item Material

(number)Delivery quantity


10 772 25 PM41 SM41 4500000208 1020 5 PA41 SA41 4500000208 20

This is the screenshot showing the first line item which has been confirmed. It indicates te delivery date and the quantity to be delivered. This goes for the following screenshots as well.

This screenshot shows the second line item concerning the existing material, which has been confirmed.

The screenshot above shows the confirmation register of the first item of the second purchase order which was created to the new material and the new vendor.

As the screenshot above these displays the second purchase order but refers to the second line item.

As the shipping has been divived into two parts these changes have been recognized in the system.Plant PM41

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New material 772Date MPR element MRP element data Received/

required quantity Confirmed

15.10.2009 Stock 0 -25.01.2010 ShpgNt 4500000208/00010 25 -03.02.2010 ShpgNt 4500000208/00010 25 -



15.10.2009 Stock 0 -25.01.2010 ShpgNt 4500000208/00010 5 -03.02.2010 ShpgNt 4500000208/00010 5 -

New material 772Stock type Plant PM Plant PAUnrestricted use 0,000 0,000Quality inspection 0,000 0,000On order stock 50,000 10,000Cust. Inquiries 0,000 0,000Cust. Quotations 0,000 0,000Sales orders 0,000 0,000Schd. For delivery 0,000 0,000Stock in transit 0,000 0,000

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7.11Creating goods receipt

7.11.1 Introduction

The screenshot above displays the goods receipts for both materials and both plants. The purchase document numbers in the last column show, which purchase orders are referred to.

This overview shows in detail the inbound delivery for the old material and both plants. The reference is the purchase order which was created. This inbound delivery is for the old vendor indicated by the vendor number in the upper part.

The screeshot above shows the inbound delivery for the new material and both plants. The quantity is referring to the first half of the total value as indicated before in the shipping notification. Still the reference is the purchase order which is for the new vendor, indicated in the upper part.

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The following series of tables show the goods receipt for both materials and both plants. These are based on the purchase orders created before.

7.11.2 Goods receipt existing material at plant PM

Material document number


Item Material (number)

Quantity Plant Storage location Purchase order number Line item

10 42 50 PM41 SM41 4500000198 10

7.11.3 Goods receipt existing material at plant PA





10 42 10 PA41 SA41 4500000198 20

7.11.4 Goods receipt new material at plant PM





10 772 25 PM41 SM41 4500000208 107.11.5 Goods receipt new material at plant PA





10 772 5 PA41 SA41 4500000208 207.11.6 Analysis results

This screenshot displays the first line item and the information referring to the goods receipt.

The screenshot above shows the second line item. The old material from the old vendor and the referring data of the goods receipt.

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This screenshot shows the goods receipt information concerning the new material an dthe new vendor. It is the information of the first line item.

The above screenshot shows the goods receipt information of the second line item which also refers to the new vendor and the new material.

The screenshot displays the material document for the old material at a quantity of 50 to deliver. The Bill of Lading number is 910CC417 and is an indication that will be used by the vendor.

The above screenshot shows the material document of the old material which will be delivered at a quantity of 10. The Bill of Lading number is the external number which will be used by th vendor is 910CC418.

The screenshot refers to the material document for the new material which will be delivered at a quantity of 25. The external number is 910CC419

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This screenshot displays the material document of the new material which will be delivered at a quantity of 5. The Bill of Lading Number is 910CC4110 and indicates the external number the vendor will refer to.

The table below shows the accounts affected by the process above.G/L accounting number Description310000 Trading Goods

191100 GR/IR clrg. Ext. proc.

23100/28100 Ext. prod. Pr. Dif.

Above the screenshot shows the financial document. The reference number indicates that the existing material is referred to.

This screenshot as well shows the financial document with reference to the old material. The reason that the amount differs from the first screenshot is due to the shipping notification containing two line items.

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This screenshot refers in contrast to the first two, to the new material which is indicated through the reference number. Another difference in the 23100 account which is mentioned. It shows an amount difference of the amounts paid and the trading goods.

As the screensho above this one refers to the new material indicated by the reference number. In this case also there is a booking on the External product price difference account which occurs through amount differences of trading goods and money paid.

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This screenshot shows the inspection lot details. Those only concern the Plant PM41, as there is no inspection at PA41. Furthermore, the screenshot shows exactly for which material the inspection will be executed. This is indicated through the purchasing document number and the material document number.

G/L accounting number Description Debit Credit191100 GR/IR-clearing – ext. Proc. 30.212,5023100 Loss fr. ext. Prod. Pric. Dif. 8.862,50310000 Trading Goods 21.350,00

The screenshot above shows the P&L account. In contrast to the first screenshot which was made from the P&L there are much more accounts. This is a result of the new purchase orders which were executed. Therefore, bookings on new account took place.

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22.10.2009 Stock 0 -22.10.2009 QM-Lot 010000000901 25 -03.02.2010 ShpgNt 4500000208/00010 25 -



22.10.2009 Stock 5 -03.02.2010 ShpgNt 4500000208/00020 5 -

New material 772Stock type Plant PM Plant PAUnrestricted use 0,000 5,000Quality inspection 25,000 0,000On order stock 25,000 5,000Cust. Inquiries 0,000 0,000Cust. Quotations 0,000 0,000Sales orders 0,000 0,000Schd. For delivery 0,000 0,000Stock in transit 0,000 0,000Parts of the material quantity have been transfered into the quality inspection of Plant Maastricht. In Amsterdam the material has been transferef directly into unrestricted use, as no quality inspection exists at this plant.

7.12Recording inspection result

The table below shows the quality inspection data for the existing material.Material (number)

Plant Master inspection characteristic


42 PM41 1000000 Maximun tolerable current

Quantitative data plan Quantitative data inspection resultMeasurement unit A

Lower plausible limit 8 Minimum 9Upper plausible limit 12 Maximum 11

Target value 10 Mean value 10Standard deviation 1

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The screenshot above shows the inspection result for the inspection of the old material.

The table below shows the quality inspection data for the new material, which will be entered in the SAP system.Material (number)




Quantitative data plan Quantitative data inspection resultMeasurement unit mV



The screenshots above shows the result of the inspections of the new material. The results differ from the results of the old material as the data which was entered in SAP differed, too. Values such as Minimun, Maximum, mean value and standard deviation influenced the results differently.

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7.137.14 Creating usage decision

The above screenshot shows the record usage decision and in particular the inspection lot stock. This screen only exists for Plant PM41, as PA does not have a QM division.

This screenshot shows mainly the same as the one before, but refers to the new material, indicated by the material number 772. This inspection lot screen refers also to plant PM, for the same reason as mentioned before. The quantity again is only half of the total amount, due to the shipping notification.



02.11.2009 Stock 25 -03.02.2010 ShpgNt 4500000208/00010 25 -



02.11.2009 Stock 5 -03.02.2010 ShpgNt 4500000208/00020 5 -

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7.15 Creating invoice


Line item

Material (number)

Purchase order quantity

Plant Goods receipt quantity

Condition value

4500000198 10 42 50 PM41 50 3867,5020 10 PA41 10 714,00

Invoice amount 4581,50The values in the last column were calculated with the standard price. Therefore, the resulting amount does not equal the amount we would have calculated as our amounts result in the following fiures: Gross price equals 92,82 times the quantity of both line items (92,82*50=4,641.00; 92,82*10=928.20).

Invoice number 5105600971 Vendor Van LieropInvoice amount 4581,50 Payment terms 14 Days 2 % 30 daysItem Material

(number)Quantity Plant Storage location Purchase order number Line item

1 42 50 PM41 SM41 4500000198 102 10 PA41 SA41 20


Line item

Material (number)



Condition value * 0,5 (Goods receipt quantity/Purchase order quantity)

4500000208 10 772 50 PM41 25 25,992.5020 10 PA41 5 5,271.224

Invoice amount 31,371.38Here the same applies as two tables before: The values in the last column were calculated with the standard price. Therefore, the resulting amount does not equal the amount we would have calculated as our amounts result in the following fiures: Gross price equals 92,82 times the quantity of both line items (1,060.29*25=26,507.25; 1,060.29*5=5,301.45). Note: The discount has not been taken into consideration.

Invoice number 510560072 Vendor KonigInvoice amount 31,371.38 Payment terms 14 Days 2 % 30 Days netItem Material

(number)Quantity Plant Storage location Purchase order number Line item

1 772 25 PM41 SM41 4500000208 102 5 PA41 SA41 4500000208 20

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The screenshot displays the purchase order with the two line items. At the button the first line item is referred to. It shows that an invoice was created, which is indicated through IR-L and the invoice number 510560972.

As the first screenshot, this one also refers to the purchase order of 4500000208. This time to the second line item. For this an invoice was also created with the number 510560972, which is the same as for the first line item. The reason for this is the same purchase order number which indicated the same vendor for both line items.

The screenshot displays the purchase order 4500000198, also containing two line items. Ths screenshot refers to the first line item and the invoice created with the number 510560971.

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This screenshot refers to the same PO as mentioned before, this time to the second line item. The reason for the same invoice number is the same as with the first purchase order. The vendor is the same, and therefore there is no need to have several invoices.

This screenshot shows the first invoice referring to the new material and the new vendor Konig. The purchase order this invoice is referring to, is mentioned in the bottom part of this document. Furthermore, the total amount of this invoice is indicated in the upper part at 31,371.38 Euro.

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The screenshot shows the second invoice 510560971 referring to the existing material from the existing vendor Van Lierop. The two line items of the purchase order are displayed as well as the total amount for this invoice of 4,581.50 Euro.

The table shows the accounts affected by posting an invoice.G/L accounting number Description191100 GR/IR clrg. Ext. proc.160000 Reconciliation Account154000 Input Tax

This document shows the financial accounting data for the old material, which is obvious through the vendor account of Van Lierop. Moreover, all other accounts, which are affected are mentioned. The GR/IR account is affected as no outgoing payment has been processed yet.

57

This screenshot is more or less the same as the one before, but the other vendor account is affected, which indicates that the new material is the matter of this invoice. All accounts affected are mentioned.

G/L accounting number Description Debit Credit046020 Other loans due after 1 year 100,000.00113100 Bank 1 domestic G/L acc. Pulles 100,000.00154000 Input Tax 5,740.38191100 GR/IR clrg. Ext. proc. 0 0231000 Loss from ext. Prod. Price diff. 8,862.50310000 Trading goods 21,350.00160000 Reconciliation account 35,952.88

The financial statement shows all accounts which were affected in the last tasks. The reason for now changes in the bank account is, that there have not been any outgoing payments, yet. The loss rom external product price differences result in the discount that will be given to our company.

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7.16 Releasing invoice

The invoices for the vendors have been released now. The next step will be the posting of the invoice.

59

7.17Creating outgoing payment

7.17.1Outgoing payment amount

After the invoice has been released the outgoing payment can take place, the table shows the needed information.Invoice amount 4,581.50Payment terms 2 %Discount amount 91.63Outgoing payment amount 4,489.87

7.17.2Outgoing payment

The table shows the accounts affected by an outgoing payment.G/L accounting number Description113100 Bank 1 (domestic)160000 Reconciliat. Account154000 Input Tax276000 Discount received

In comparison to the last financial account documents, the bank account and discount account are affected as well. This is due to the outgoing payment which has been done in the last step.

This screenshot indicates that an outgoing payment was created which is obvious by the first line with the type KZ. The outgoing payment has the same amount as the invoice created before.

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G/L accounting number Description Debit Credit046020 Other loans due after 1 year 100,000.00113100 Bank 1 (domestic) G/L acc. Pulles 95,510.13154000 Input Tax 5,725.75191100 GR/IR clrg. Ext. proc. 0 0231000 Loss from ext. Prod. Price diff. 8,862.50276000 Discount received 77.00310000 Trading goods 21,350.00160000 Reconciliation account 31,371.38

This screenshot shows that an outgoing payment has been done. This is indicated through the affected bank account. Another account which was affected through this is the accounts payable and the discout received.

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7.18 Summary of the postings

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7.19 Creating shipping notification remaining new materials

Inbound delivery number

180000208 Vendor Konig Delivery date 04.11.2009


Delivery quantity


10 772 25 PM41 SM41 4500000208 1020 5 PA41 SA41 20

The screenshot shows the purchase order of the new material. It is indicated that the second half of the total amount will be shipped on 04.11.2009.

This screenshot is the second part of the purchase order and refers to the second line item of this PO. The second half of the total amount this time is 5 instead of 25 and will also be delivered on 04.11.2009 as indicated in the bottom part at the left.

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02.11.2009 Stock 0 -12.02.2010 ShpgNt 4500000208/00010 25 -



02.11.2009 Stock 0 -12.02.2010 ShpgNt 4500000208/00020 5 -


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7.14Creating goods receipt

7.14.1 Introduction

This overview displays the inbound delivery for the second half of the purchase order 4500000208 for the new material. The overview shows the vendor through the numer and the delivery date.

7.14.2 Goods receipt new material at plant PM





10 772 25 PM41 SM41 4500000208 10

7.14.3 Goods receipt new material at plant PA





10 772 5 PA41 SA41 4500000208 20


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For the second half of the purchase order referring to the new material there was also a document created for the goods receipt referring to the remaining 25.

This overview shows the second line item of the same purchase order as the overview before. It indicated also the goods receipt created and the remaining quantity to be delivered.

The document displays the material document which refers to the first line item of the purchase order of the new material.

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This overview refers to the second line item of the purchase order which was divided into two halfs. This one refers to the Plant PA and therefore the stock type is “unrestricted use” in comparison to the first line item, which has to go through a quality inspection.

As with the first part of the purchase order this time as well the account 23100 is affected through price differences due to the discount which will be given. The financial document refers to the higher quantity of 25, indicated through the higher amount.

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The second line item quantity is lower as from the first one, therefore the amounts mentioned here are lower. Still there is a price difference due to the discount which will be given at the outgoing payment.

This overview shows the purchase order document number which this inspection is referred to. It only concerns the items at Plant PM41, as at PA41 there is not Quality Management division for an inspection.

G/L accounting number Description Debit Credit046020 Other loans due after 1 year 100,000.00113100 Bank 1 (domestic) G/L acc. Pulles 95,510.13154000 Input Tax 5,725.57191100 GR/IR clrg. Ext. proc. 26,362.50231000 Loss from ext. Prod. Price diff. 17,725.00276000 Discount received 77.00310000 Trading goods 38,850.00160000 Reconciliation account 31,371.38

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There has not been any changes in the bank account yet due to the fact that it has not been subject of happenings yet. No outgoing payment has been stated so far. GR/IR clearing, trading goods and loss from external product price differences were the only accounts affected by the goods receipt.

The table below shows the data for the quality management at Plant Maastricht, which will be made for the new material.



Confirmed

02.11.2009 Stock 0 -02.11.2009 QM-Lot 010000000910 25 -

For Plant Amsterdam this is not necessary as indicated through the table.Plant PA41New material 772Date MPR element MRP element


Confirmed

02.11.2009 Stock 10 -


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7.15Recording inspection result

The table below shows the inspection charateristics for the material inspection of the new material.Material (number)




Quantitative data plan Quantitative data inspection resultMeasurement unit mV



This overview shows exactly the data which was shown in the table before, too. These are the characteristics of the inspection which will be done at Plant PM41.

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7.16Creating usage decision

This screenshot displays the record usage decision stock. It refers to the new material which will be part of the inspection lot at Plant PM41. The number 25 is indicated in the middle and shows the quantity of inspection lot stock.



Confirmed

02.11.2009 Stock 0 -The required quantity is 0 in this case, as the remaining 25 parts of the shipment will first run through the inspection before they are available in stock.



Confirmed

02.11.2009 Stock 10 -

New material 772Stock type Plant PM Plant PAUnrestricted use 25,000 10,000Quality inspection 25,000 0,000On order stock 0,000 0,000Cust. Inquiries 0,000 0,000Cust. Quotations 0,000 0,000Sales orders 0,000 0,000Schd. For delivery 0,000 0,000Stock in transit 0,000 0,000After the second quality inspection process the last half of the 50 items should be in inrestricted use as well. Actually this is not the case here for some reasons that we do not know.

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7.17Creating invoice


Line item

Material (number)



Condition value * 0,5 (Goods receipt quantity/Purchase order quantity)

1800000208 10 772 50 PM41 25 25,992.5020 10 PA41 5 5,271.224

Invoice amount 31,371.38

Invoice number 5105600973 Vendor KonigInvoice amount 31,371.38 Payment terms 14 Days 2 % 30 Days NetItem Material

(number)Quantity Plant Storage location Purchase

order numberLine item

1 772 25 PM41 SM41 1800000208 102 5 PA41 SA41 20

This overview shows that an invoice has been created for the second part of the purchase order as well. The number 510560973 shows the invoice for the remaining 25 parts of delivery. This overview refers to the first line item of the purchase order.

This screenshot displays the second line item of the purchase order. It indicates that for the second half of the PO there was an invoice created as well which refers to the quantity remaining to be delivered. The invoice number 510560973 is the same as for the first line item, as it concernc the same PO. Still this refers to a new shipping and therefore does not have the same invoice number as the first shipment from this PO.

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The screenshot above shows the invoice document which shows the content of the invoice created before. It refers to the second half of the purchase order which is to be shipped. The total amount of 31,371.38 Euro is shown as well as the tax to be paid.

The financial document shows that an invoice was created but not yet paid, as the bank account has not been affected, yet. Still it refers to the second shipping which is obvious through the GR/IR account which is affected. Furthermore, the amount of the vendor account was already mentioned in that way in the invoice itself.

G/L accounting number Description Debit Credit046020 Other loans due after 1 year 100,000.00113100 Bank 1 (domestic) G/L acc. Pulles 95,510.13154000 Input Tax 10,734.63191100 GR/IR clrg. Ext. proc. 0 0231000 Loss from ext. Prod. Price diff. 17,725.00276000 Discount received 77.00310000 Trading goods 38,850.00160000 Reconciliation account 62,742.76

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As a reason of the invoice which was posted the GR/IR account has been affected, as well as the accounts payable, which indicates now the amount of the total purchase order referring to the new material. The loss rom external product price difference account was also affected as a reason that the outgoing payment has not be posted yet and therefore no discount has been received which results in a difference in amounts.

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7.18 Releasing invoice

7.19Creating outgoing payment

7.19.1 Outgoing payment amount

After the invoice for the new vendor has also been released the next step will be the outgoing payment.Invoice 1 Invoice 2

Invoice amount 31,371.38 31,371.38Payment terms 2 % 2 %Discount 627.42 627.42Outgoing payment amount 30,743.96 30,743.96Outgoing payment amount total 61,487.92

7.19.2 Outgoing payment

G/L accounting number Description113100 Bank 1 (domestic)160000 Recon. Account154000 Input Tax276000 Discount received

The above screenshot shows the financial document for the outgoing payment. This time the bank account is affected by reason that the traded goods are being paid. Therefore, the vendor account raises at the same value as the bank account decrease. Input tax and the discount receive account are also affected through the outgoing payment.

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This screenshot displays the payment usage. The first line of the three which are displayed shows the invoice of the total amount of the quantity delivered (50). In this screen the vendor is also mentioned so that the company knows where this invoice is going to be sent.

G/L accounting number Description Debit Credit046020 Other loans due after 1 year 100,000.00113100 Bank 1 (domestic) G/L acc. Pulles 34,022.23154000 Input Tax 10,534.27191100 GR/IR clrg. Ext. proc. 0 0231000 Loss from ext. Prod. Price diff. 17,725.00276000 Discount received 1,131.50310000 Trading goods 38,850.00160000 Reconciliation account 0

This screenshot shows what is already indicated in the table above. It shows that the account of bank, input tax and discount received are being affected through the outgoing payment.

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7.26 Summary of the postings

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8 Master data sales process

8.1 Customer master data

8.1.1 Introduction

The table shows organizational units and additional data fields of these.

Organisational unit/Department Additional data fieldAddress TelephoneAccounting AuthorizationSales Customer Group

The telephone data field, for example, which is regarded as general data, is only relevant for sales and distribution. However, since it is not based on the sales and distribution organization of the company and is always unique for this customer, it is not considered part of the sales and distribution data.

Access to master records can be restricted in order to prevent unauthorized changes from being made. The user can assign different authorizations for different types of processing. Authorizations are specified during system configuration and assigned to each user in his or her user master record. In this case accounting data is affected and therefore it is reasonable to leave the responsibility for data adaptions in this department

Allows the company to group its customers by industry or by sales figures. This way the individual classification system can be used to find objects that match the required criteria.Since the sales department is in direct customer contact it can most effectively classify clients into distinct groups.

8.1.2 Customer list

8.1.3 Master data existing customer distribution channel 01

The table below shows the master data of the existing customer for the distribution channel 01.Organisational level Data field Value existing customerAddress Customer (number) 35

Title CompanyName LuitenSearch term 1/2 LUIStreet/House number Slangenstraat 24Postal code 2134 EZCity AalsmeerCountry NLLanguage Dutch


Reconciliation account 140000Tolerance group PULL

Sales department Sales Office DS41Sales Group D41Currency EURCust. pric. proc. 3Shipping conditions 02Delivering plant PA41

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Incoterms EXW Ex-WorksTerms of Payment 0002Country (code) NLTax category (code) MWSTTax classification (code)

1

Description of the data fields (the F1 function did not work, therefore, we were forced to think of explanations ourselves):

Under the country data field the user can assign a key for the country-specific formatting routine to each country. Countries that have a routine contained in the standard system, these fields are predefined accordingly.

The input under this data field determines the standard language used within the customer master data (important for language specific characteristics e.g. cedilla).

The delivering plant refers to the plant from which the goods are to be delivered to the customer, within a specific sales organization and distribution channel. The plant can be automatically proposed by the system when processing a sales order, if it has been maintained in one of the master records.

Incoterms are special trading rules that traders/retailers need to stick to. The incoterms are internationally recognized and from great importance for traders. These rules facilitate international trade as it help traders from different countries to understand each other in trade business.

Payment terms or terms of payment are special conditions under which traders make a sale. These terms normally specify the period allowed to a buyer to pay of the amount of an invoice.

Customer pricing procedures define a group of condition types in a particular sequence. This determines among others which sub-totals appear during pricing. To what extent the pricing can be processed manually, which method the system uses to calculate percentage disounct and surcharges and which requirements for a particular condition type mustbe fulfilled before the system takes the conditions into account.

The reconciliation account is in its essence a balance sheet, which cannot directly be altered. Thus all postings made in the subsidiary ledgers are posted through the reconciliation account to the general ledger. The recon. Account is kept for a certaingroup like vendors or customers In this case the value indicates the effected customer account.

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8.1.4 Extending distribution channel existing customer

8.1.4.1 Sales department

8.1.5 Master data existing customer distribution channel 02

The table below shows the master data for the existing customer for a new distribution channel 02.

Organisational level Data field Value existing customerAddress Customer (number) 35

Title CompanyName LuitenSearch term 1/2 LUIStreet/House number Slangenstraat 17Postal code 2134 EZCity AalsmeerCountry NLLanguage Dutch

Accounting department Reconciliation account 140000Tolerance group PULL

Sales department Existing sales area New sales areaSales Office DS41 IS41Sales Group D41 I41Currency EUR EURCust. pric. proc. 3 3Shipping conditions 02 02Delivering plant PA41 PA41Incoterms EXW Ex Works EXW Ex WorksTerms of Payment 0002 0002Country (code) NL NLTax category (code) MWST MWSTTax classification (code) 1 1

If the distribution channel is created with the master data of an existing customer as a reference customer the advantage is that data can be easily adapted. The system can assume the data for the customer referring to the distribution channel, which simplifies the process of creation. The data does not have to entered again in the system, which decreases the work load.

8.2 Master data new customer

8.2.1 Introduction

The table shows the master data of a new customer, which will be entered into the SAP system.Organisational level Data field ValueAddress Name Gollum

Search term GOLStreet/House number Engelstraat 11Postal code 5900City Venlo ACCountry NL (Netherlands)

Accounting department Terms of Payment 0002Sales department Terms of Payment 0002

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8.2.2 Creating master data new customer distribution channel 01

Master data of the new customer for distribution channel 01.Level Data field Value new customerAddress Customer (number) 137

Title CompanyName GollumSearch term 1/2 GOLStreet/House number EngelstraatPostal code 5900 ACCity VenloCountry NLLanguage Dutch


Reconciliation account 140000Terms of payment 0002Tolerance group PULL

Sales department Sales Office DS41Sales Group D41Currency EURCust. pric. proc. 3Shipping conditions 02Delivering plant PA41Incoterms EXW Ex WorksTerms of Payment 0002Country (code) NLTax category (code) MWSTTax classification (code) 1

8.3 Extending distribution channel material

8.3.1 Introduction

8.3.2 Material master data existing material

The table shows the material master data of the existing material indicated through the material number at the top.Organisational level Data field ValueBasic Material (number) 42

Base Unit of Measure STMaterial group 01Division 03GeneralItemCatGroup NORMGross weight 4Net weight 3Weight Unit KGLanguage NLDescription Standaard lamp inkoop/verkoopLanguage ENDescription Standard Lighting Purchasing/Sales

Sales department Existing sales area New sales areaBase Unit of measure ST ST

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Delivering plant PM41 PA41(Tax) Country (code) NL NLTax category (code) MWST MWSTTax classification (code) 1 1(Sales price) Amount Scale

quantityAmount Scale

quantityAmount

1 200 1 18010 150

PM41 PA41Plant Base Unit of measure ST ST

Availability check 02 02Loading group 0001 0001




QM proc. active YesQM control key 0007 0000Inspection setup Yes NoInspection type 01 10Active YesPost to inspection stock Yes -Inspection with mat. specification

Yes Yes


Currency EUR EURCurrent period 09 2009Valuation Class 3100 3100Price control S SPrice unit 1 1Standard price 65,00 60,00

8.3.3 Material master data new material

The table shows the material master data of the new material indicated through 772, the material number.

Organisational level Data field ValueBasic Material (number) 772

Base Unit of Measure STMaterial group 01Division 03GeneralItemCatGroup NORMGross weight 13Net weight 12Weight Unit KGLanguage NLDescription Solair plaatje 130 WLanguage ENDescription Solar panel 130 W

Sales department Existing sales area New sales areaBase Unit of measure ST STDelivering plant PM41 PA41(Tax) Country (code) NL NL

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Tax category (code) MWST MWSTTax classification (code) 1 1(Sales price) Amount Scale


quantityAmount

1 800 1 75010 650 10 600PM41 PA41





QM proc. active Yes YesQM control key 0007 0000Inspection setup Yes NoInspection type 01 10Active YesPost to inspection stock Yes -Inspection with mat. specification

Yes Yes


Currency EUR EURCurrent period 09 2009Valuation Class 3100 3100Price control S SPrice unit 1 1Standard price 600 500

8.4 Pricing master data

8.4.1 Price element net sale price PR00

As a new distribution channel has been created the price schema has to be defined.Sales organisation Distribution channel Material

numberDescription Scale quantity Amount

SO41 01 42 Standard lighting P/S

1 200,0002 1 180,00

10 150,0001 772 Solar Panel 1 800,00

10 650,0002 1 750,00

10 600,00

8.4.2 Freight revenue KF00

As well as the price schema, the freight costs have to be defined for the new channelSales organisation Division Distribution channel Incoterms Description AmountSO41 03 01 EXW Ex Works 2,00

02 1,00

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8.4.3 Price element MWST

The tax has also be defined for the new distribution channel.Output tax Country Tax Class. Cust. Tax class. Mat. Tax code Valid on AmountMWST Netherland

s1 1 A2 22.11.2009 19,00

8.4.4 Price schema sales

Material Distribution channel

Price element

Name Amount Gross weight Condition value

Standard lighning purchasing/sales

01 PR00 Net price 65,00 65,00KF00 Freight costs 2,00 4,00 8,00

Net price excl. output tax 72,00MWST Output tax 19,00 13,68

Net price incl. output tax 85,6802 PR00 Net price 60,00 60,00

KF00 Freight costs 1,00 4,00 4,00Net price excl. output tax 64,00

MWST Output tax 19,00 12,16Net price incl. output tax 76,16

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9 Process description sales and distribution

9.1 Introduction

9.2 Basic sales process

9.3 Alternative sales process

9.3.1 Description sales process steps9.3.2 Additional information9.3.3 Process data flow diagram

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9.3.4 Description process steps

Display Customer Master record All data needed for the sales process can be found under the customer master record. Creating Customer Master recordWhen dealing with a new customer the new data has to be entered into the system. Important organizational levels like sales, accounting or general data have to be filled in.

Checking inquiryAs a first step of the sales process the inquiry of both the existing and the new customer are checked on the basis of the Customer Master data.

Creating inquiryThe existing customer sends an inquiry to the sales department for the existing and the new material. The delivery plant is the plant in Amsterdam. The new customer sends an inquiry to the sales department for the existing and the new material. The delivery plant is the plant in Amsterdam. In this way the data of the delivery plant is set. The inquiry needed for the quotation is the document created in this step.

Creating quotationPulles creates a quotation for each inquiry. The quotation informs the customer about the prices and the delivery date. On the basis of the inquiry the quotation is set up and sent to the customer. In this way the customer is able to confirm the quotation.

Redistribution available quantitiesIt turns out that the quotation quantities can not be delivered in time. For that reason it is decided that the unrestricted use stock in Amsterdam will be shared in a fair way by the two quotations. This redistribution is considered in the quotation document.

Creating orderFor each quotation an order is received from the customer. There have been changes to the quotation due to redistribution in the step before. These changes are considered in the quotation document. On this new basis the order of both customers are adapted.

Creating outbound deliveryThe orders are the basis for the outbound deliveries, which are created in a next step. The document for this step is therefore the outbound delivery.

Creating picking The quantity of the outbound delivery is picked from the unrestricted use stock. The picking process refers to the outbound delivery, which was created before.

Creating goods issueThe materials are loaded into the truck and sent to the customer. The quantity issued refers to the picking in the step before.

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Creating invoice/billAn employee of the accounting department creates the invoice for the goods, sent to the customer. The customers both receive an invoice for the quantity that they will be supplied with. By reason of the invoice a financial document is also created within SAP, which is only for Pulles use.

Creating stock transfer orderIt turns out that the warehouse in Maastricht has sufficient on stock of both the existing and the new material. A purchase order (stock transfer order) is sent to the plant in Maastricht. This happens due to the fact that there was not enough stock in plant Amsterdam to cover both inquiries of the two customers.

Creating outbound delivery plant MaastrichtThe stock transfer order results in one outbound delivery for the open quantity. This outbound delivery refers to a purchase order which was created from plant in Amsterdam.

Creating picking plant MaastrichtThe quantity of the outbound delivery is picked from the unrestricted use stock.

Creating goods issue plant MaastrichtThe existing and the new material are picked from the unrestricted use stock of Maastricht and loaded on the truck to transport the material to the plant in Amsterdam. Here as well a financial document is created for internal use. This document refers to the goods issued.

Creating goods receipt plant AmsterdamThe existing and the new material are stored in the unrestricted use stock of the plant in Amsterdam.

Adapting sales order delivery scedulesThe availability of the sales order line items is adapted. This results in a new order document, which is created through this process.

Creating outbound deliveryThe availability of the material for the order is checked. Following, each order results in one outbound delivery for the open quantity. This results in a new outbound delivery for the second part of the order.

Creating picking The quantity of the outbound delivery is picked from the unrestricted use stock. The basis for the picking is the outbound delivery document, which was created in the step before. Furthermore, the picking document is created within this process.

Creating goods issueThe materials are loaded into the truck and sent to the customer. These materials were picked before and form the quantity of the second order.

Creating invoice/billAn employee of the accounting department creates the invoice for the goods, sent to the customer. For internal purposes a financial document is created, which shows the accounts being affected by this process.

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Creating incoming paymentAn employee of the accounting department enters the incoming payment. These incoming payments cover both invoices. Although the first invoice was sent already before.

Documents created by SAP

Name process step Document name Document nameCreating inquiry InquiryCreating quotation QuotationCreating order OrderCreating outbound delivery Outbound deliveryCreating picking Picking documentCreating goods issue Material document goods issue Financial documentCreating invoice/bill Invoice/Bill Financial documentCreating stock transfer order Purchase orderCreating outbound delivery Outbound deliveryCreating picking for PM Picking documentCreating goods issue Material document goods issue Financial documentCreating goods receipt Material document goods receiptAdapting sales order delivery OrderCreating outbound delivery Outbound deliveryCreating picking Picking documentCreating goods issue Material document goods issue Financial documentCreating invoice/bill Invoice Bill part 1 & 2 Financial documentCreating incoming payment Financial document

Preceding SAP documents

Preceding process step Consecutive process step Document name, referred toCreating inquiry Creating quotation InquiryCreating quotation Creating order QuotationCreating order Creating outbound delivery OrderCreating outbound delivery Creating picking Outbound deliveryCreating picking Creating goods issue Outbound deliveryCreating goods issue Creating invoice/bill Outbound deliveryCreating stock transfer order Creating picking Purchase (stock transfer) orderCreating outbound delivery Creating Picking Purchase orderCreating picking Creating goods issue Outbound deliveryCreating goods issue Creating goods receipt Purchase orderCreating goods receipt Adapting sales order Purchase orderAdapting sales order Creating outbound

deliveryPurchase order

Creating outbound delivery Creating Picking OrdersCreating picking Creating goods issue Outbound deliveryCreating goods issue Creating invoice/ill Outbound deliveryCreating invoice/bill Creating incoming

paymentOutbound delivery

Creating incoming payment Invoice/bill part 1&2

External documents

Name preceding process step External document Incoming/outgoingCreating Inquiry Inquiry Incoming

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Creating quotation Quotation OutgoingCreating order Order Incoming

Creating outbound delivery Outbound delivery IncomingCreating picking Picking IncomingCreating goods issue Goods issue IncomingCreating invoice/bill Invoice/bill OutgoingCreating stock transfer order Purchase (stock transfer) order Outgoing*Creating outbound delivery Outbound delivery OutgoingCreating picking Picking OutgoingCreating goods issue Goods issue OutgoingCreating goods receipt Goods receipt IncomingAdapting Sales order delivery Orders IncomingCreating outbound delivery Outbound delivery IncomingCreating picking Picking IncomingCreating goods issue Goods issue OutgoingCreating Invoice/bill Invoice/bill OutgoingCreating incoming payment Incoming payment Incoming

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10 Executing sales and distribution process in SAP

10.1Introduction

10.2Creating inquiry

10.2.1 Inquiry existing customer

10.2.1.1 Inquiry document

The table below shows the data of the customer Luiten who makes an inquiry about certain materials.Sales organisation SO41 Customer number 35Distribution channel 02 Name LuitenDivision 03 PO number 910CC4119Sales Office IS41 Requested delivery date 20.12.2009Sales Group I41 Valid from 22.11.2009

Valid to 06.12.2009

Material (number) Description Order quantity Plant Storage location42 Standaard lamp Ink/Verkoop 8 PA41 SA41772 Solar Plaatje 10

10.2.1.2 Validating sales area inquiry existing customer

The tables below show the important data from the inquiry of the existing customer. For each material the specific data is presented.

Customer number 35 Customer name LuitenSales area Sales organisation Name Distribu

tion channel

Name Division Name

SO41 Sales Org. Pulles 41

01 Direkt Sales 03 Lightning equipment02 Internet Sales

Material 42 Description Standaard lamp Ink/Verkoop

Sales area Sales organisation

Name Distribution channel

Name Division

Name


01 Direkt Sales 03 Lightning equipment02 Internet

Sales

Material 772 Description Solar Plaatje

Sales area Sales organisation Name Distribution channel

Name Division Name


01 Direkt Sales

03 Lightning equipment

02 Internet Sales

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Sales area inquiry Customer Sales area customerSales organisation SO41 Customer number 35 Sales organisation SO41Distribution channel 02 Name Luiten Distribution channel 01 02Division 03 Division 03

Material Description Sales area materialSales organisation Distribution channel Division

42 Standaard lamp Ink/Verkoop

SO41 01 0302

772 Solar plaatje 0102

10.2.1.3 Creating inquiry existing customer in SAP

The table below shows the results of the inquiry from the existing customer.Inquiry number 10000141Sales organisation SO41 Customer number 35Distribution channel 02 Name LuitenDivision 03 PO number 910CC4119Sales Office IS41 Requested delivery date 20.12.2009Sales Group I41 Valid from 22.11.2009

Valid to 06.12.2009

Material Description Order quantity Plant Storage location42 Standaard lamp Ink/Verkoop 8 PA41 SA41772 Solar plaatje 10

10.2.2 Inquiry new customer

10.2.2.1 Inquiry document

The table below is based on the first inquiry document table, which was mentioned before.Sales organisation SO41 Customer number 137Distribution channel 01 Name GollumDivision 03 PO number 910CC4120Sales Office DS41 Requested delivery date 20.12.2009Sales Group D41 Valid from 22.11.2009

Valid to 06.12.2009

Material Description Order quantity Plant Storage location42 Standaard lamp Ink/Verk 7 PA41 SA41772 Solar plaatje 8

10.2.2.2 Validating sales area inquiry new customer

Customer number 137 Customer name GollumSales area Sales organisation Name Distribution

channelName Division Name

SO41 Sales Org. Pulles41

01 Direkt Sales

03 Lightning equipment

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Sales area inquiry Customer Sales area customerSales organisation SO41 Customer number 137 Sales organisation SO41Distribution channel 01 Name Gollum Distribution channel 01Division 03 Division 03

Material Description Sales area materialSales organisation Distribution channel Division


SO41 01 0302

772 Solar plaatje 0102

10.2.2.3 Creating inquiry new customer in SAP

The inquiry data of the table below is based on the data from the existing customer. Changes are in the distribution channel, which was created.Inquiry number 10000142Sales organisation SO41 Customer number 137Distribution channel 01 Name GollumDivision 03 PO number 910CC4120Sales Office DS41 Requested delivery date 20.12.2009Sales Group D41 Valid from 22.11.2009

Valid to 06.12.2009

Material Description Order quantity Plant Storage location42 Standaard lamp Ink/Verk 7 PA41 SA41772 Solar plaatje 8

10.3Analysis results

The screenshot above shows the overview of the first inquiry. It refers to the old customer Luiten, which has the number 35 (Sold-to-Party). It shows the materials, which are sold to him, the exact delivery date and the PO number, which is the indicator for this inquiry.

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This screenshot shows the inquiry of the new customer Gollum. The customer is indicated through the Sold-to-Party number 137. The address shows the place where the shipment is delivered to. Furthermore, this overview shows, which materials are exactly delivered, the description of the material and the quantity sold. This inquiry has also a PO number, which the customer can refer to.



Confirmed

22.11.2009 Stock 10 -

New materialStock type Plant PAUnrestricted use 10,000Quality inspection 0,000On order stock 0,000Cust. Inquiries 0,000Cust. Quotations 0,000Sales orders 0,000Schd. For delivery 0,000Stock in transit 0,000

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10.4Creating quotation

10.4.1 Quotation existing customer

Quotation number 20000135Sales organisation SO41 Customer number 35Distribution channel 02 Name LuitenDivision 03 PO number 910CC4119Sales Office IS41 Requested delivery date 20.12.2009Sales Group I41 Valid from 22.11.2009

Valid to 06.12.2009

Material Description Order quantity Plant Storage location

Inquiry number

42 Standaard lamp Ink/Verkoop 8 PA41 SA41 10000141772 Solar Plaatje 10

10.4.2 Quotation new customer

Quotation number 20000136Sales organisation SO41 Customer number 137Distribution channel 01 Name GollumDivision 03 PO number 910CC4120Sales Office DS41 Requested delivery date 20.12.2009Sales Group D41 Valid from 22.11.2009

Valid to 06.12.2009


Inquiry number

42 Standaard lamp Ink/Verk 7 PA41 SA41 10000142772 Solar Plaatje 8

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The screenshot above shows the conditions under which the first shipment to the customer will run. The total quantity of the shipment is mentioned as well as the material this overview refers to (42). The calculation in the lower part of the screenshot shows that the customer will receive a discount of 2% on the quantity bought. The quotation number on top shows that this overview refers to the new customer Gollum and the inquiry he made. It shows the first part referring to the old material with a quantity of 7.

The quotation number at the upper part of this screenshot shows that this refers also to the inquiry of the new customer Gollum. As indicated at he top the new material is the matter of this quotation with an amount of 8. The customer will get an discount of 3% as was entered in the SAP system before.

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10.5Redistribution available quantities

10.5.1 Availability checking existing customer

Quotation number

20000135 Customer number 35 Name Luiten

Material number

Description Plant Material availability date Confirmed quantity

42 Standaard lamp I/V PA41 20.12.2009 8772 Solar Plaatje 20.12.2009 10

10.5.2 Availability checking new customer

Quotation number

20000136 Customer number 137 Name Gollum

Material number

Description Plant Material availability date Confirmed quantity

42 Standaard lamp I/V PA41 20.12.2009 702.03.2010 0

772 Solar Plaatje 20.12.2009 002.03.2010 8

The reason that there is not confirmed quantity for the new material on the 20.12.2009 is that the stock of the new material is only 10. The first customer already inquiried 8, which leave only 2 items for the new customer. As the total amount cannot be met by the company, Gollum will not receive any item unless the stock is backfilled.


The screenshot above shows the document flow of the first quotation. This is indicated through the quotation numer 20000135. It shows that two line items are mentioned in this quotation with amounts of 8 and 10 and their value. The status of the quotation is still open as the order must be set for this.

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The screenshot shows the document flow for the second quotation, which is indicated through the quotation number 20000136 but also through the inquiry number 100000142. As the first document flow it shows that the quotation refers to two line items, which can be seen at the two quotation lines with different number 20000136/10 and 200000136/20. The quantities of the two line items 7 and 8 are showns as well as the amounts. As with the first document flow the status of the quotations are still open as the order must be set.

As indicated through the quotation number at the top of this screenshot, the overview of the first quotation is shown. Number 35 shows that this is referring to the old customer’s quotation, which will be delivered on the 20th of December, 2009. The two line items which are concerned are shown in the item overview at the lower part. The order quantity of both materials is shown.

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The screenshot shows the overview of the quotation 20000136. The nuber indicates that this is referring to the new customer 137, Gollum. It shows the line items 10 and 20, which refer to the quotation, which the customer made. The quantity amounts 7 and 8 of the old and the new material are shown, as well as the delivery date of these items.


required quantity

Confirmed

22.11.2009 Stock 10 -20.12.2009 Quottn 0020000135/000020/0001 10- 1020.12.2009 Quottn 0020000136/000020/0001 8- 0

42Stock type Plant PAUnrestricted use 15,000Quality inspection 0,000On order stock 0,000Cust. Inquiries 0,000Cust. Quotations 15,000Sales orders 0,000Schd. For delivery 0,000Stock in transit 0,000The customer orders do match the stock quantity. Therefore, this material can be delivered immediately.

772Stock type Plant PAUnrestricted use 10,000Quality inspection 0,000On order stock 0,000Cust. Inquiries 0,000Cust. Quotations 18,000Sales orders 0,000Schd. For delivery 0,000Stock in transit 0,000This table shows that the customer quotations exceed the stock, which is available of the new material 772.

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10.5.4 Adapting quotation quantity


The tables below show that the amount in stock at Plant Amsterdam of the new material does not match the inquiries of the customers, which order 10 and 8 items, which would make a total 18. Therefore, the quantity has to be adapted as otherwise the distribution of the products, would be unfair.

Material Plant Unrestricted use stock quantity

Goods receipt processing time

Current day

Nearest possible confirmation date

Standaard lamp I/V PA41 15 100 22.11.2009 02.03.2010Solar Plaatje 10 100 02.03.2010

Quotation number

20000135 Customer number

35 Name Luiten

Material number

Description Quotation quantity

Plant Delivery date/conf. date

Confirmed quantity

42 Standaard lamp I/V

8 PA41 20.12.2009 802.03.2010 0

772 Solar plaatje

10 20.12.2009 502.03.2010 5

Quotation number

20000136 Customer number

137 Name Gollum

Material number

Description Quotation quantity

Plant Delivery date/conf. date Confirmed quantity

42 Standaard lamp I/V

7 PA41 20.12.2009 702.03.2010 0

772 Solar Plaatje

8 20.12.2009 502.03.2010 3

10.5.4.2 Entering adapted quotation quantities existing customer

10.5.4.3 Entering adapted quotation quantities new customer

10.5.4.4 Entering adapted quotation quantities existing customer revisited



required quantity

Confirmed

22.11.2009 Stock 10 -20.12.2009 Quottn 0020000135/000020/0001 10- 520.12.2009 Quottn 0020000135/000020/0001 8- 5

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10.6Creating order

10.6.1 Entering order existing customer

The table shows the summary of the inquiry of the existing customer with the order number 171.Order number 171Sales organisation SO41 Customer number 35Distribution channel 02 Name LuitenDivision 03 PO number 910CC4119Sales Office IS41 Requested delivery date 20.12.2009Sales Group I41


Quotation number


10.6.2 Entering order new customer

The table shows the summary of the inquiry of the new customer with the order number 172.Order number 172Sales organisation SO41 Customer number 137Distribution channel 01 Name GollumDivision 03 PO number 910CC4120Sales Office DS41 Requested delivery date 20.12.2009Sales Group D41


Quotation number


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The order for the quotations was set and as it is shown at the upper part of this screenshot, is refers to the first quotation. This is indicated through the PO number 910CC4119. Still both line items with the same amounts of 8 and 10 are displayed. The incoterms are also set. Incoterms are special trade rules, which retailers need to stick to.

This screenshot displays the second quotation from the new customer, indicated through the PO nuber 910CC4120. Also the Sold-to-Party number 137 indicates the customer Gollum. The two line items for the materials 42 and 772 are displayed as well as their quantity. As well as with the first quotation the incoterms are set at EXW.

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The screenshot above shows again the document flow referring to the first inquiry. The second step the quotations are now completed as the order was set. This is also indicated through the order number 0000000171, which is the next step under the quotation. As the outbund delivery is not made yet, the status of the order is still open meaning incomplete.

As the screenshot before this screenshot also displays the document flow but this time referring to the second inquiry, which is indicated through the quotation number at the top. The order number also differs from the first one. As well as for the first quotation the status of the order is open as the outbund delivery has not been set yet but will be the next step for the completion of the order.


required quantity

Confirmed

22.11.2009 Stock 10 -20.12.2009 Cusord 0000000171/000020/0001 10- 520.12.2009 Cusord 0000000172/000020/0001 8- 5

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New materialStock type Plant PAUnrestricted use 10,000Quality inspection 0,000On order stock 0,000Cust. Inquiries 0,000Cust. Quotations 0,000Sales orders 18,000Schd. For delivery 0,000Stock in transit 0,000Still there is not enough stock to meet the customers’ orders. Both customers will first receive a quantity of 5, which is fair for both.

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10.7Creating outbound delivery

The tables below show that the quantities of the new material that the customers ordered has been adapted in a fair way, as both customers will receive exactly the same amount of items.

Outbound delivery number 80000347Sales organisation SO41 Customer number 35Shipping point PA41 Name Luiten

Material number Description Delivery quantity

Plant Storage location

Order number


Outbound delivery number 800000348Sales organisation SO41 Customer number 137Shipping point PA41 Name Gollum



Order number


In comparison to the last document flow the status of the order for the first line item is completed now, as the outbound delivery is set. For the second line item the order is still in process. The reason for this is that there was not enough stock to cover the inquiry of the first and the second customer. This problem has to be solved before the order can be completed. Therefore, the outbound delivery for the second line item is still open.

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The document flow shows that the next step, the outbound delivery has been completed for the first line item. The outbound delivery for the second line item is not yet completed as there were complications with the stock to be used. As the total amount which was inquired by the two customers exceeded to total quantity in stock. Therefore, the order for the second line item also for this quotation is still in process.

This screenshot shows the overview of the outbound delivery. The quantity of the second item was set on 5 items for this delivery as the stock amount was lower than the quantity of the quotation. As indicated at the right of this screenshot the total amount of the delivery should be 10. Therefore, there are another 5 that shall be delivered at some later point in time.

The screenshot shows the outbound delivery for the second quotation, which is indicated through the number at the top ending with 348 instead of 347. The amount for the second line item, which refers to the new material is also set at 5. On the right there is the actual quantity of the delivery 8. So there are an additional 3 items, which have to be delivered to the new customer Gollum.

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required quantity

Confirmed

22.11.2009 Stock 10 -20.12.2009 Cusord 0000000171/000020/0001 5- 020.12.2009 Cusord 0000000172/000020/0001 3- 020.12.2009 Delvy 00800000347/000020/0000 5- 520.12.2009 Delvy 00800000348/000020/0000 5- 5As determined before, both customers will receive a quantity of 5.

New materialStock type Plant PAUnrestricted use 10,000Quality inspection 0,000On order stock 0,000Cust. Inquiries 0,000Cust. Quotations 0,000Sales orders 8,000Schd. for delivery 10,000Stock in transit 10,000There were not changes in stock and therefore, only 10 items of the ordered 18 can be delivered. Due to that reason there are additional 8, which are ordered but cannot be delivered yet. Nevertheless, it as confirmed that a quantity of 5 will be delivered to each customer, which is indicated through the quantity of 10, in schedule for delivery.

107

10.8Creating picking

The tables below contain the data needed for the picking of the material, with the exact amount of the picking, for the existing and new customer.


Delivery date 20.12.2009


Picked quantity


Order number

42 Standaard lamp Ink/Verkoop 8 8 PA41

SA41 171772 Solar Plaatje 5 5




Picked quantity


Order number

42 Standaard lamp Ink/Verk 7 7 PA41 SA41 172772 Solar Plaatje 5 5

Due to changes of the quantity the outbound delivery is still being processed. Nevertheless the next step could actually be completed namely the picking request. As this is only a request this step could be completed before the outbound delivery is done. The changes of the quantity are indicated at the lower part of the screenshot. The quantity is 5 instead of 10, which are asked by the customer.

108

The same as above goes for this document flow. The outbound delivery process is not completed yet but still the next step of the picking request could already been completed. At the lower part of this screenshot it is indicated that the quantity for the new material, which shall be delivered changed from 8 to 5.

109

10.9 Creating goods issue

This document flow, referring to the first quotation indicates that the goods are ready for delivery. The process of the outbound delivery has not been completed yet, as the transportation has not taken place yet.

As with the screenshot before, this document flow shows that the goods, which shall be delivered are ready for transportation. As this step has not yet been completed the process of outbound devlivery is still not completed.

110

The screenshot above refers to the first quotation and its shipment, which is indicated through the goods issue number ending with 670 at the top. The overview shows, which materials are concerned and the exact amount, which will be delivered. The material slip number is the quotation number, which also indicates that this overview refers to the first quotation.

The overview above shows the screenshot referring to the second quotation indicated through the material slip 0080000348. As the first screenshot is shows the material, which is part of this quotation and the exact amount that will be delivered. The plant PA41 indicates the shipping point, meaning the plant where the items are picked up for delivery.

G/L accounting number Description310000 Trading goods

101100 Intermediate account

111

The screenshot above shows the financial document of the first quotation. The amount of 480,- Euro refers to the first line item, as the amount of 2.500,- refers to the second. The reference number on top shows that this overview refers to the first quotation for the old customer Luiten. The intermediate account is affected as no ingoing payment has taken place yet.

The screenshot shows the overview of the second quotation, which is shown through the reference umber, which is the quotation number. The difference of 60,- Euro for the first line item exists by reason of different quantity, which will be delivered. As no ingoing payment has taken place yet, the intermediate account is affected, instead of the bank account.

G/L accounting number Description Debit Credit

310000 Trading Goods 480,00101100 Intermediate account 480,00310000 Trading Goods 2.500,00101100 Intermediate account 2.500,00310000 Trading Goods 420,00101100 Intermediate account 420,00310000 Trading Goods 2.500,00101100 Intermediate account 2.500,00

112

As already mentioned before the two accounts of trading goods and intermediate account are being affected through the process of the outbound delivery. The account of trading goods decreased in comparison and the intermediate account increased. As the ingoing payment will take place, the intermediate account will be cleared and bank account will be affected.


required quantity

Confirmed

22.11.2009 Stock 0 -20.12.2009 Cusord 0000000171/000020/0001 5- 020.12.2009 Cusord 0000000172/000020/0001 3- 0Both customers still require a specific amount of materials.

New materialStock type Plant PAUnrestricted use 0,000Quality inspection 0,000On order stock 0,000Cust. Inquiries 0,000Cust. Quotations 0,000Sales orders 8,000Schd. For delivery 0,000Stock in transit 0,000Due to the outbound deliveries which took place the stock of the new material is cleared now but an amount of 8 items is still requested by customers, which is shown through the sales orders.

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10.10 Creating invoice/bill

The tables below show the necessary data for the posting of the invoices for both customers. Furthermore the second tables referring to the first tables show that the invoices have been posted.

Outbound delivery number 80000347Sales organisation SO41 Customer number 35Distribution channel 02 Name LuitenDivision 03

Material Description Delivery quantity

Price element Name Amount Gross weight

Condition value


8 PR00 Net Price 65,00 65,00KF00 Freight

revenue2,00 4 8,00

MWST Output Tax

19,000 12,35

Gross price incl. output tax 85,35772 Solar Plaatje 5 PR00 Net

Price800,00 800,00

KF00 Freight revenue

1,00 13 13,00

MWST Output Tax

19,000 152,00

Gross price incl. output tax 965,00Total invoice amount 1050,35

Invoice number 90000240Sales organisation SO41 Customer number 35Distribution channel 02 Name LuitenDivision 03 Invoice date 22.11.2009Sales Office IS41Sales Group I41

Material Description Quantity Plant Storage location

Outbound delivery number


114

Outbound delivery number 80000348Sales organisation SO4

1Customer number 137

Distribution channel 01 Name GollumDivision 03


Price element

Name Amount Gross weight

Condition value


7 PR00 Net Price 65,00 65,00RA00 Discount

from net 2,001,30

KF00 Freight Revenue

2,00 4 8,00

MWST Output tax 19,00 12,35Gross price incl. output tax 86,65

772 Solar Plaatje 5 PR00 Net Price 800,00 800,00RA00 Discount

from net3,00 24,00

KF00 Freight Revenue

1,00 13,00 13,00

MWST Output tax 19,00 152,00Gross price incl. output tax 989,00

Total invoice amount 1075,65

Invoice number 90000241Sales organisation SO41 Customer

number137

Distribution channel 01 Name GollumDivision 03 Invoice

date22.11.2009

Sales Office DS41Sales Group D41

Material number Description Quantity Plant Storage location



115

The document flow is the document flow of the first quotation, indicated through the numbers of the quotation, the inquiry, the outbound delivery etc. As mentioned before, no ingoing payment has taken place for the delivered goods. This is indicated by the status of the accounting document, which is the next step of the process. As long as no ingoing payment took place, the intermediate account will not be cleared and the process not completed.

The screenshot above shows the document flow for the second quotation. The order process is not yet completed as no ingoing payment has taken place yet. This is also shown through the status of the accounting document, which is “not cleared”. That means that the intermediate account has to be cleared, which will happen through an ingoing payment. The intermediate account will be affected as well as the bank account.

116

The invoice above is referring to the first quotation, which is indicated through the reference 347 in the middle of this document. The payer of the invoice 35, is the old customer Luiten, which is also indicated at the top of this overview. It shows the items, which are affected by this invoice and shows the exact billed quantity. The new quantity of the second line item has also been adapted to 5 instead of 10 items.

The screenshot above shows the invoice for the customer 137, Gollum, indicated through the “payer” at the top of the overview. As with the first invoice the quantity of the new material has also been adapted to 5 instead of 8. The reference number 348 also indicates that this invoice refers to the second quotation.

The screenshot above shows the financial accounting document for the first quotation, indicated through the reference number 910CC4119. As the invoice was set the customer account 35 of the customer Luiten is affected. As it is a revenue the amount of 5.283,72 is debited on this account. The other accounts that are affected through the invoice process are also mentioned.

117

The screenshot above refers to the second quotation indicated through the reference number 910CC4120 at the top of this document. The customer account 137 of Gollum is debited with an amount of 6.471,22 Euro as this is a revenue. In contrast to the old customer, Gollum will receive discounts on the old and new material, therefore, the customer discount account is also affected. The discount are 2% on the old and 3% on the new material, which was entered in the SAP system before.

G/L accounting number Description140000 Customer receivables800000 Sales revenue802000 Freight revenue175000 Output tax880000 Customer discounts

G/L accounting number Description Debit Credit35 Luiten 5.283,72800000 Sales revenue 1.440,00802000 Freight revenue 0,03175000 Output Tax 843,62800000 Sales revenue 3.000,00802000 Freight revenue 0,07

137 Gollum 6.471,22800000 Sales revenue 1.400,00880000 Customer discount 28,00802000 Freight revenue 56,00175000 Output Tax 1.033,22800000 Sales revenue 4.000,00880000 Customer discount 120,00802000 Freight revenue 130,00

118

The screenshot above shows the financial statement after the process of the outbound delivery. As mentioned in the table before the customer accounts are affected, in this overview it is the 140000 Customers – Domestic Receivables 1 account. It shows the total amount of the customers payment. The discount is mentioned individually in the 880000 account at the end of this overview. As it is an ingoing payment the output tax is affected as well.

119

10.9Creating stock transfer order

10.9.1 Stock quantity plant PM

New materialStock type Plant PM Plant PAUnrestricted use 15,000 0,000Quality inspection 25,000 0,000On order stock 0,000 0,000Cust. Inquiries 0,000 0,000Cust. Quotations 0,000 0,000Sales orders 0,000 8,000Schd. For delivery 0,000 0,000Stock in transit 0,000 0,000Due to some reasons the total amount of 50 units has to been transferred to unrestricted use, but only 25.

10.9.2 Extending distribution channel material


10.9.2.2 Material master data existing material

The table shows the material master data of the existing material.Organisational level Data field ValueBasic Material (number) 42

Base Unit of Measure STMaterial group 01Division 03GeneralItemCatGroup NORMGross weight 4Net weight 3Weight Unit KGLanguage NLDescription Standaard lamp inkoop/verkoopLanguage ENDescription Standard Lighting Purchasing/Sales

Sales department Existing sales area

New sales area Plant replenishment

Base Unit of measure ST ST STDelivering plant PM41 PA41 PA41(Tax) Country (code) NL NL NLTax category (code) MWST MWST MWSTTax classification (code) 1 1 1(Sales price) Amount Scale


quantityAmount

1 200 1 18010 150

PM41 PA41Plant Base Unit of measure ST ST

120





QM proc. active YesQM control key 0007 0000Inspection setup Yes NoInspection type 01 10Active YesPost to inspection stock Yes -Inspection with mat. specification

Yes Yes


Currency EUR EURCurrent period 11 2009Valuation Class 3100 3100Price control S SPrice unit 1 1Standard price 65,00 60,00

10.9.2.3 Material master data new material

The table shows the material master data of the new material.Organisational level Data field ValueBasic Material (number) 772

Base Unit of Measure STMaterial group 01Division 03GeneralItemCatGroup NORMGross weight 13Net weight 112Weight Unit KGLanguage NLDescription Solair PlaatjeLanguage ENDescription Solar Panel

Sales department Existing sales area

New sales area Plant replenishment

Base Unit of measure ST ST STDelivering plant PM41 PA41 PA41(Tax) Country (code) NL NL NLTax category (code) MWST MWST MWSTTax classification (code) 1 1 1(Sales price) Amount Scale


quantityAmount

1 800 1 75010 650 10 600PM41 PA41

Plant Base Unit of measure ST ST

121





QM proc. active Yes YesQM control key 0007 0000Inspection setup Yes NoInspection type 01 10Active YesPost to inspection stock Yes -Inspection with mat. specification

Yes Yes


Currency EUR EURCurrent period 11 2009Valuation Class 3100 3100Price control S SPrice unit 1 1Standard price 600 500

10.9.3 Stock transfer order

Purchase order number 4500000257 Supplying plant PM41Item Material (number) Quantity Plant Storage location10 42 10 PA41 SA4120 772 10

This screenshot shows the purchase order for the internal transfer of stock. It is displayed that both the existing and the new material will be delivered at a quantity of 10. The supplying plant is as indicated in the top part of the screenshot the Plant in Maastricht. This screenshot shows only on of the two line items in the lower part as there is the option to choose between these two in the item details part.

122


required quantity

Confirmed

30.11.2009 Stock 0 -10.03.2010 POitem 4500000257/00020/0001 10 -20.12.2009 Cusord 0000000171/000020/0001 -5 020.12.2009 Cusord 0000000172/000020/0001 -3 0

New materialStock type Plant PM Plant PAUnrestricted use 15,000 0,000Quality inspection 25,000 0,000On order stock 0,000 0,000Cust. Inquiries 0,000 0,000Cust. Quotations 0,000 0,000Sales orders 0,000 8,000Schd. For delivery 0,000 0,000Stock in transit 0,000 0,000Actually the amount of 10, which is missing for the full amount of Plant Maastricht, should have been in schedule for delivery, as an internal stock transfer will take place. Nevertheless, the difference of total 50 items and in this table only 40 items is not of importance for the further procedure.

123

10.12 Creating outbound delivery plant Maastricht

The screenshot above shows the outbound delivery for the two material. This document refers to the purchase order, which was created before. It is an internal stock transfer, which is indicated through the “Ship-to-party” at the top of this screenshot. The goods issue is planned for the 30.11.2009, as a next step of this process.

Outbound delivery number 80000370Sales organisation SO41 Customer number PLANT PA41Shipping point PM41 Name Van Santen




42 Standaard lamp Ink/Verk 10 PM41 SM41 4500000257772 Solair Plaatje 10

The screenshot shows the document flow of the processes, which were conducted up until now. It shows that a purchase order was created, which includes two line items, referring to the two material. The Replenishment refers to the outbound delivery. This process however, has not been completed yet, which is indicated through the status at the end of both replenishment lines.

124

The screenshot above shows the purchase order history of the first line item, the existing material of the purchase order, which was created before. It shows, that an outbound delivery with the number 80000370 has been created, with a quantity of 10 items of the material.

This screenshot shows the same overview as the one before but this time the lower part refers to the second line item. The outbound delivery has the same number as for the first screenshot, as both materials belong to one purchase order and therefore, refer to the same documents.

The screenshot above shows the outbound delivery of the internal stock transfer. It is displayed that the materials 772 and 42 are delivered to Plant Amsterdam.

125


required quantity

Confirmed

30.11.2009 Stock 0 -10.03.2010 POitem 4500000257/00020/0001 10 -02.03.2010 Cusord 0000000171/000020/0001 0 502.03.2010 Cusord 0000000172/000020/0001 0 3

New material 772Stock type Plant PM Plant PAUnrestricted use 15,000 0,000Quality inspection 25,000 0,000On order stock 0,000 10,000Cust. Inquiries 0,000 0,000Cust. Quotations 0,000 0,000Sales orders 0,000 8,000Schd. For delivery 0,000 0,000Stock in transit 0,000 0,000The transfer has now been proceeded and therefore, the on order stock of PA is now 10.

126

10.13 Creating picking plant Maastricht

The information in the table below is the necessary data for the picking process at Maastricht.Outbound delivery number 80000370Sales organisation SO41 Customer number PLANT PA41Shipping point PM41 Name Van Santen

Planned GI date 30.11.2009

Material number

Description Delivery quantity

Picked quantity




10 10 PM41 SM41 4500000257

772 Solair Plaatje 10 10

127

10.10 Creating goods issue plant Maastricht

The following table shows the information, which is necessary for the creation of goods issue at Plant Maastricht.Material document number 4900000703Item Material Quantity Plant Storage location Purchase order number Line item10 42 10 PM41 SM41 4500000257 1020 772 10 4500000257 20

The screenshot above shows the document including the steps after the outbound delivery, which has been completed now. Furthermore the picking process has also been completed and goods have been issued.

The screenshot above shows the purchase order of the two line items, this one referring to the first line item. The goods have been issued now, which is indicated through the material document number 4900000703.

The screenshot above shows the second line item of the purchase order. As well as for the first line item the goods have been issued. As the two line item belong to the same purchase order, there is no difference in the material document number, which was created through this process.

128

This screenshot shows that the material 42 Standard Lighting Purchase/Sales will be transferred from Plant Maastricht to Plant Amsterdam.The delivery note number is the outbound delivery number, which is the document referred to.

The screenshot above shows that the new material 772 Solar Panel will be transferred from Plant Maastricht to Plant Amsterdam. The delivery note document number, is the number of the outbound delivery, which is referred to here as well, as the two material belong to one purchase order in this case.

129

This screenshot shows the accounting information, which belongs to the internal data transfer. Trading goods are decreased as a result of the internal stock transfer and paid for. As there evolved stock transfer costs, this account is also affected by the internal stock transfer.

G/L accounting number Description Debit Credit310000 Trading goods 6,000.00310000 Trading goods 5,000.00235000 Stock trsfr expense 1,000.00310000 Trading goods 650.00310000 Trading goods 600.00235000 Stock trsfr expense 50.00

The screenshot above shows the current financial status of the company. In contrast to the screenshot 9.9 of the financial statement there are changes of trading goods in this screenshot. These changes are due to the stock transfer and affect the trading goods account. The transfer costs are subtracted, therefore, the amount is lower now. This is also obvious through the stock transfer account, which is affected with the same amount as the trading goods account.

130


required quantity

Confirmed

30.11.2009 Stock 0 -10.03.2010 POitem 4500000257/00020/0001 10 -02.03.2010 Cusord 0000000171/000020/0001 0 502.03.2010 Cusord 0000000172/000020/0001 0 3


131

10.11 Creating goods receipt plant Amsterdam

The following table shows the information, which is needed for the creation of the goods receipt in Amsterdam.Material document number 5000000544Item Material Quantity Plant Storage location Purchase order number Line item10 42 10 PA41 SA41 4500000257 1020 772 10 4500000257 20

The screenshot above shows that for the first line item of the purchase order the goods receipt process was completed now.

As the screenshot before, this one also refers to the goods receipt of the purchase order. This time it displays the purchase order history of the second line item, the new material. The material document number created for the goods reeipt is therefore, the same as for the first line item.

132

The screenshot above shows the material document information referring to the interal stock order transfer. It shows that the quantity of 10 of both materials wer delivered to Plant Amsterdam

For this process there is no accounting document as the financial process of the internal stock transfer has already been booked at the outbound delivery process before.


required quantity

Confirmed

03.12.2009 Stock 10 -02.03.2010 Cusord 0000000171/000020/002 0 502.03.2010 Cusord 0000000172/000020/002 0 3


133

10.12 Adapting sales order quantities

Order number 171 Customer number

35 Name Luiten

Material Description Plant Delivery date/conf. date Confirmed quantity42 Standaard lamp

I/Verk.PA41 - -

772 Solair Plaatje 20.12.2009 5For the existing material there is no need for adapting the sales order quantities, as the stock of this material was sufficient in Plant Amsterdam.

Order number 172 Customer number

137 Name Gollum

Material Description Plant Delivery date/conf. date Confirmed quantity42 Standaard lamp

I/Verk.PA41 - -

772 Solair Plaatje 20.12.2009 3


required quantity

Confirmed

03.12.2009 Stock 10 -20.12.2009 Cusord 0000000171/000020/0001 -5 520.12.2009 Cusord 0000000172/000020/0001 -3 3


134

10.13 Creating outbound delivery



Material Description Delivery quantity Plant Storage location Order number

42 Standaard lamp Ink/Verkoop PA41

SA41 171772 Solair Plaatje 5



Material Description Delivery quantity Plant Storage location Order number

42 Standaard lamp Ink/Verkoop PA41

SA41 172772 Solair Plaatje 3

The screenshot above shows the workflow document of the internal stock transfer. All steps have been completed so far except for the accounting process. This is because no payment has been proceeded yet.

135

The screenshot above shows the first outbound delivery. It refers to the first order of the first customers, which is indicated through the quantity of 5 items and the Ship to Party, which is number 35 Van Luiten.

This outbound delivery refers to the second order from the new customer, which is indicated through the customer number 137 from Gollum. Furthermore, the quantity indicated that it refers to the second customer, who ordered only a quantity of 3.

Plant PA41New material 772Date MPR

elementMRP element data Received/

required quantity

Confirmed

03.12.2009 Stock 10 -20.12.2009 Delvry 0080000382/000010/0000 -5 5

Delvry 0080000383/000010/0000 -3 3

New materialStock type Plant PAUnrestricted use 10,000Quality inspection 0,000On order stock 0,000Cust. Inquiries 0,000Cust. Quotations 0,000Sales orders 0,000Schd. for delivery 8,000Stock in transit 8,000

136

10.14 Creating picking




Picked quantity


Order number

42 Standaard lamp Ink/Verkoop PA41 SA41 171772 Solair Plaatje 5 5

Outbound delivery number 80000383

Sales organisation SO41 Customer number 137Shipping point PA41 Name Gollum


Material Description Delivery quantity Picked quantity

Plant

Storage location

Order number


PA41

SA41 172

772 Solair Plaatje 3 3

As the whole process is executed on the basis of the two order numbers, there are two document flows. This one above shows the document flow for the first order 171, which refers to the quantity of 5 items, for the existing customer. The picking has already been done. But the step of outbound delivery has not yet been completed as the goods issue has not been created yet. Moreover, due to no payment, the accounting process has not taken place yet.

137

This screenshot refers to the second order 172, from the second customer. The process is the same as with the screenshot before. The accounting process has not been finished yet by reason that no payment has been made. The picking process is finished now and the outbound delivery process will be completed with the creation of goods issue.

138

10.15 Creating goods issue

The screenshot above shows the document flow for the first order. In comparison to the document flow, which was displayed before, the goods issue has been created now. The outbound delivery process is still not finished as the invoice needs to be posted. Only if a payment has taken place the accounting process will be finished.

The screenshot above refers to the second order from the new customer. Here as well the process of the outbound delivery has not yet been completed as a reason of not invoice has been posted yet. Nevertheless another step the creation of the goods issue is completed now. The accounting document is not cleared as no payment has taken place yet.

139

The screenshot above shows the overview level of the material document, which was created during the process of the internal stock transfer. It shows that the quantity of 5 of the material 772 has now been transferred to the Plant in Amsterdam. The material slip at the top of the screenshot refers to the outbound delivery, which was created for the internal transfer of this amount, for the existing customer.

As the screenshot before, the screenshot above shows the material document, which was created on basis of the internal transfer. This one refers to the second outbound delivery indicated through the material slip at the top of the screenshot 80000383. The quantity of 3 has been transfered to Plant Amsterdam now.

The screenshot above shows the accounting document, which was created for the first outbound delivery. The amount referring to the goods transfered is credited from the account of trading goods. The intermediate account has been debited as no payment has been proceeded yet. Therefore, the accounting process has not been finished, as indicated already in the document flow.

140

This screenshot refers to the second outbound delivery, which is indicated through the reference nuber 0080000383 in the middle of the screenshot. As with the screenshot before, it is displayed, that tha trading goods are credited with the amount of 1.500 referring to the 3 items, which are transfered. Here as well the payment has not yet taken place, therefore, the intermediate account has been credited on. As long as there will be no payment for the goods, this account will be credited.

G/L accounting number Description Debit Credit310000 Trading Goods 2.500,00101100 Intermediate account 2.500,00310000 Trading Goods 1.500,00101100 Intermediate account 1.500,00

In comparison to the financial statement before the trading goods are now decreased by the amount of 4.000 Euro, which is a result of the internal stock transfer. The bank account has not been affected yet, as not payment has taken place until now. The intermediate account is affected but is on the financial statement, but it will be cleared, when the payment is done.



Confirmed

03.12.2009 Stock 2 -- POitem - - -- Cusord - - -

New material141

Stock type Plant PAUnrestricted use 2,000Quality inspection 0,000On order stock 0,000Cust. Inquiries 0,000Cust. Quotations 0,000Sales orders 0,000Schd. For delivery 0,000Stock in transit 0,000

10.16 Creating invoice/bill

Below the gross price (incl. output tax) for the existing customer iscalculated for the existing and the new material. Outbound delivery number 80000382Sales organisation SO41 Customer number 35Distribution channel 02 Name LuitenDivision 03


Price element Name Amount Gross weight

Condition value

42 Standaard lamp Ink/Verk

PR00 Net PriceKF00 Freight

revenueMWST Output TaxGross price incl.output tax

772 Solair Plaatje 5 PR00 Net Price 800.00 800.00KF00 Freight

revenue1.00 13 13.00

MWST Output Tax 19 152.00Gross price incl.output tax 965.00

Total invoice amount 965.00

Invoice number 90000265Sales organisation SO41 Customer number 35Distribution channel 02 Name LuitenDivision 03 Invoice date 03.12.2009Sales Office IS41Sales Group I41



42 Standard lamp Ink/Verkoop PA41 SA41 80000382772 Solair Plaatje 5

142

Below the gross price (incl. output tax) for the new customer is calculated for the existing and the new material. Fill in the following table. Outbound delivery number 80000383Sales organisation SO4

1Customer number 137

Distribution channel 01 Name GollumDivision 03


Price element

Name Amount Gross weight

Condition value

42 Standard lamp Ink/Verk

PR00 Net PriceRA00 Customer

discountKF00 Freight

revenueMWST Output TaxGross price incl.output tax

772 Solair Plaatje 3 PR00 Net Price 800.00 800.00RA00 Customer

discount3.00 24.00

KF00 Freight revenue

1.00 13 13.00

MWST Output Tax 19 152.00Gross price incl.output tax 989.00

Total invoice amount 989.00

Invoice number 90000266Sales organisation SO41 Customer

number137

Distribution channel 01 Name GollumDivision 03 Delivery

date03.12.2009

Sales Office DS41Sales Group D41



42 Standard lamp Ink/Verk PA41 SA41 80000383772 Solair Plaatje 3

143

The document flow above refers to the first order of the existing customer. The process of outbound delivery has now been completed as the invoice has been posted. The accounting document is not cleared, which is a result of no payment. As long as the payment of the trading goods has not taken place, the intermediate account will be debited and the accounting process not completed.

144

As the screenshot before, this screenshot shows the document flow, but this time referring to the second order of the new customer. This is indicated through the different quantity of 3 at the lower part of the screenshot. Here as well the accounting process is not been finished, as the payment of the transfered trading goods has not taken place yet.

The screenshot above shows the overview level of the first invoice. This incoive refers to the first outbound delivery, which is indicated through the reference number 80000382 and the order number 171. The payer of this invoice is Luiten, which is indicated through the customer number 35.

This screenshot refers to the second outbound delivery indicated through the number 8000383 and shows the overview level of the invoice for the new customer 137 Gollum. The quantity which will be delivered to the customer is three, just as indicated before in the outbound delivery process (picking and goods issue).

145

The screenshot above shows the accouting document, which has been created within the process of outbound delivery. The basis for this accouting document is the invoice, which has been created as last step of the outbound delivery. It shows the exact amount that the customer Luiten has to pay for the material he ordered.

This screenshot shows the accounting document, which was created for the second outbound delivery, referring to the second customer, Gollum. Here as well the amout the customer has to pay is displayed. The difference to the first screenshot of the existing customer is that Gollum will receive a discount on the order.

G/L accounting number Description Debit Credit137 Gollum 2,863.14800000 Sales revenue 3,000.00880000 Customer discounts 72.00802000 Freight revenue 78.00175000 Output tax 570.01

35 Luiten 3,570.08800000 Sales revenue 2,400.00802000 Freight revenue 0.07175000 Output tax 457.14

146

This screenshot shows the financial statement of the company. As the invoices has been posted now several accounts have been affected. These accounts are Customers, Output Tax, Sales revenue, Freight revenue and customer discount, though the latter one is only debited for the new customer, as the first one will not get a discount.

147

10.17 Creating incoming payment

10.17.1 Incoming payment amount existing customer

Invoice 1 Invoice 2Invoice amount 1,713.64 3,570.08Payment terms 0002 0002Payment discount 2% 2%Incoming payment amount 1699.37 3498.68Incoming payment amount total 5,198.05

10.17.2 Creating incoming payment existing customer

The screenshot above shows the incoming payment of the existing customer, which is indicated through the customer number at the top of the screenshot. The total amount that the customer has to pay is displayed. This amount refers to the total quantity he has ordered as the first invoice of the first shipment has not been payed for yet. Actually this incoming payment should refer to the first invoice as well but this only refers to the last invoive, which was posted.

148

The screenshot above shows the document flow for the first order of the existing customer Luiten. It shows that the customer ordered 8 items of the existing material and 5 plus an additional 5 items of the new material. The accounting process is completed now, as the customer paid for the material now. The reason that the first accounting document is not cleared is that the first invoice has not posted.

The screenshot above shows the final financial document. It shows that the customer has now paid for the trading goods that he has received. The bank account is finally debited as the sale resulted in a revenu for the company Pulles.

149

G/L accounting number Description113100 Bank881000 Payment discount140000 Customer receivables175000 Output tax

G/L accounting number Description Debit Credit113100 Bank 3,498.68881000 Payment discount 60.00140000 Customer receivables 3,570.08175000 Output tax 11.40

As indicated already in the table before, there are several changes in the financial statement of the company. These changes refer to the bank account, the payment discount, the customer receivables and the output tax. As the customer has now paid for the materials, the customer receivable is now credited.

10.17.3 Incoming payment amount new customer

Invoice 1 Invoice 2Invoice amount 6.603,3 2921,6Payment terms 0002 0002Payment discount 132,07 58,43Incoming payment amount 6471,22 2863,14Incoming payment amount total 9334,36

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10.17.4 Creating incoming payment new customer

The screenshot above shows both invoices that were posted for the new customer. The total amount that the customer Gollum has to pay for the material he purchased is 9.334,- Euro. In the middle of the screenshot the two invoices are displayed with the amounts and the posting date. As a next step the incoming payment for the new customer was created.

The screenshot above shows the document flow referring to the order of the new customer, which is recognizable through the order number 172 at the top of the screenshot. The accounting documents are cleared now, which indicates that the payment has been posted. The total amount of the new material has been delivered to this customer.

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The screenshot shows that for the incoming payment all accounting document have now been cleared, which was also indicated in the document flow bove. The total amount of the invoice respectively the incoming payment is displayed.

The screenshot above shows the accounting document for the incoming payment from the new customer. It shows the total amount of the first and the second invoice that the customer has received before.

G/L accounting number Description Debit Credit113100 Bank 1 domestic 9277.10881000 Payment discount 48.12137 Gollum 9334.36175000 Output Tax 9.14

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The screenshot above shows the final balance sheet after the incoming payments of the both customer. Actually the abnk account should be increased by the amount, which is still in the customers receivable account. By reason that this has not been cleared the total amount from the existing customer has not yet been paid by him.

All other accounts which have been affected through the incoming payment are also displayed and in comparison to the former financial statement bear changes. The output tax and the customer discount should also be different, as those two accounts would also be affected by the incoming payment of the existing customer.

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10.18 10.22 Summary of the postings

10.22.1Summary of the postings existing customer

The incoming payment in the end does not equal the total value amount, which was determined before. This results in the fact that the first invoice has maybe not been posted, which can also be seen in the screenshot referring to the creation of the incoming payment of the existing customer.

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10.22.2Summary of the postings new customer

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