Presentation on theme: "Sales Order Management"— Presentation transcript:
1Sales Order Management SAP Best Practices for Retail
2Purpose, Benefits, and Key Process Steps Sales Order Management describes a Business-to-Business (B2B) scenario: you sell to your known customer(s) (with master data record), who in turn sell(s) the merchandise to their customers (wholesale function). In addition to sales order processing functions, this scenario also includes the following process steps: credit limit check and availability check, consignment, backorder processing, customer contract, product catalog, online store, customer billing document, payment handling, and subsequent settlement.BenefitsThe entire document chain - presales phase, order, follow-up actions - forms a document flow or history. The flow of data from one document to another reduces manual processing and facilitates problem solving.Backorder fulfillment from returns stock allows you to manage how returns are to be allocated for backorders and stock transfers: If the article is unused and can be readily shipped again, then it is quicker and more cost- effective to use it to fill sales backorders or stock transfer orders rather than to move it back to unrestricted-use stock and for subsequent picking and reshipment.Key Process StepsCreation of Standard Orders, Rush Orders, Third-Party OrdersBackorder Processing and ReschedulingCreation of Customer Billing DocumentsPayment HandlingCustomer Returns HandlingSubsequent SettlementCustomer Consignment HandlingCustomer Contract HandlingProduct Catalog Handling
3Required SAP Applications and Company Roles SAP SAP enhancement package 3 for SAP ERP 6.0Company RolesRetail Sales PersonRetail Store ManagerRetail Warehouse ClerkAccounts Payable AssistantAccounts Receivable Assistant
4Sales Order / Backorder Processing and Rescheduling Process Flow DiagramSales Order / Backorder Processing and ReschedulingRetail Sales PersonStandard Order/Rush Order/ Third Party OrderAnalyze Sales Document ReschedulingCredit Limit CheckAvailability CheckRetail Store ManagerMonitor the Returns Stock after DistributionBackorder Processing and ReschedulingRun CATTMonitor the Returns StockRetail Warehouse ClerkDirstibute Returns Stock to BackordersReschedule Sales Documents
5Sales Order: Alternatives A Sales order is a customer request to the company for the delivery of goods or services at a certain time. The request is received by a sales area, which is then responsible for fulfilling the order.Standard order: Merchandise will be collected or rather delivered and invoiced afterwards.Rush order: Merchandise will be collected or rather delivered imme- diately and invoiced afterwards.Third-party order: Merchandise will be delivered directly by the vendor to the customer. The ordering enterprise invoices to the customerCash sales order: Merchandise will be collected and payed immediately.
6Options in the order creation - 1 Cross Selling: due to the entered article additional related articles are suggestedDynamic Product Proposal: due to the entered customer the articles (History, PP...) connected with this customer number are suggested
7Options in the order creation - 2 The credit limit check is a check, whether a customer has already covered his credit limit and which consequences are connected with it (warning, fault, delivery block). This check can be carried out in every sales document.The delivery of a product to a delivery date is only possible if this product is available for all processing steps to be carried out before the delivery.To guarantee this the availability check is used in the order.
8Backorder ProcessingBackorder processing with a selective list for sales documentsSelect and process backorders for a particular articleManual processingAssignment of the ATP-quantitiesCheck the returns stocks on goods not damaged and not usedListing of relevant requirements forsales documents
9Rescheduling Selection of the open sales document Positions of the selected articleandavailability checkAnalysis of the last rescheduling run
10Customer Billing Document “Customer billing document” is an umbrella term for invoices, credit memos, debit memos, pro-forma invoices, and cancellation documents.Billing represents the final processing stage for a business transaction in Sales and Distribution
11Customer Billing Document Process Flow DiagramCustomer Billing DocumentRetail Sales PersonGenerate Preceeding Documents via ECATTCreate Billing Documnet Online on the basis of the Outbound DeliveryIncoming Payment in FIGenerate Collective billing Document in the BackgroundAlternative 1Alternative 2
12Payment HandlingThe milestone billing in the billing plan is used for the payment processing of a deposit.Milestone billing means, that the total value, which should be invoiced, is divided in several partial amounts in the billing plan (percentage / absolute), they are to be paid at certain dates.A milestone billing is a schedule with particular billing dates.
13Process Flow Diagram Payment Handling Retail Sales Person Accounts Receivable AssistantAccounts Payable AssistantRetail Sales PersonDown Payment Agreement in the Sales OderPrint the Final Billing Document (Screen)Incomimg Payment for the Down Payment Request in FIClear the Payment that has already been made in FIDown Payment request in SDPrint the Down Payment Request (Screen)Final Billing with Down Payment Clearing in SD)Incomimg Payment in FI
14Customer Return There are various reasons for returning goods: - The goods are damaged in some way so that they cannot be transferred back into normal stock, but have to be returned to the vendor.- The customer did not like the goods and wants to replace them. The goods can, however, be reused either fully or partially.- The customer did not like the goods and wants their money back or a credit memo. The goods can be reused either fully or partially.When the returned goods are received from the customer,they are initially posted into blocked returns stock. Thereturned goods are checked and a decision is made as to whatto do with them, for example: breakage stock (returnedto vendor or destroyed), staff sales, transfer tonormal stock/distribution to backorders.
15Process Flow Diagram Customer Return Retail Sales Person Preparations ExecutionTransfer from Rerurns Stock to Blocked StockStock ControlGoods Issue for the Free of Charge Subsequent DeliveryCreate a Delivery for the Free of Charge Subsequent DeliveryCreate a Returns DeliveryFull Transfer Postingto Unrestricted-Use StcokRelease the Returns for Subsequent ProcessingCreate a ReturnMonitor the Returns StockTransfer from Blocked Stock to Return Delivery Storage locationCheck the Document FlowCreate a Free of Charge Subsequent DeliveryRemove the Billing BlockIssue the Credit MemoCreate Returns OrderPost the Goods Receipt for the ReturnsPost the Goods receipt for the Returned GoodsCreate a Return with Free of Charge Subsequent DeliveryStock DisplayCreate Credit MemoRelease to AccountingPost the Returns Delivery
16Process of Returns Handling Finance:Logistics:Input of customer returnsCredit note orSubsequent delivery free of chargeStockStock correction (Input to blocked stock)Following processesLog. invoice verificationGoods receiptCreation of customer returns orderStock transfer postinginto unrestricted stock orDispatching to backordersTransfer posting to returns stockReturn delivery to vendorInvoice verification
17Arrival of the return goods Posting in blocked stockGoods receipt posting
18Evaluation of the return goods Control of the goodsDecision of further useTransfer back tounrestricted stockTransfer toreturns stock
19Additional Use I – Unrestricted Stock Tranfer back to unrestricted stockAllocate to open orders
20Additional Use II – Returns Stock Transfer back to returns stockDisposal
21Return delivery to vendor Subsequent processReturn delivery to vendor
22Subsequent Settlement As part of the subsequent settlement procedure, you can offer a reduced price, for example, when a customer buys certain quantities of particular articles together, uses a customer card for payment, or reaches or exceeds the sales volume in a period that has been agreed upon in advance.
23Subsequent Settlement Process Flow DiagramRetail Sales Person8.3Rebate Processing (in SD)8Subsequent Settlement8.3.3Update the Sales Volume8.3.2Create Rebate Agreement8.3.4Generate ‚New‘ Sales VolumeSettlemenr of the Agreement(s)8.3.1Display the Status of Rebate AgreementCreate Sales Order8.3.5Display Sales Volume DataDocument FlowCreate Billing DocumentCreate DeliveryCreate Transfer Order and Corfirm with GIOutbound Delivery8.3.6Display Drill Downs8.3.8Release Agreement for Settlement8.3.7Carry out partcial SettlementRelease Credit Memo Request for the Partial Rebate SettlementBill Credit Memo Request for the Partial rebate Settlement8.3.9Create Final SettlementBill Rebate Credit Memo Request for the Final SettlementRelease Rebate Credit Memo Request for the Final Settlement8.3.10Display Payment HistorySubsequent Settlement
24Customer ConsignmentConsignment goods are goods that are stored at a customer location but that are still owned by your company. From a planning point of view this stock is no longer available and is managed independently.The customer is not obliged to pay for these goods until they remove them from consignment stock. Otherwise, the customer can usually return consignment goods that are not required.Consignment processing is advantageous to both parties. Customers store the consignment goods at their own warehouses. The customer can access the goods in the consignment warehouse at any time. They are only billed for the goods when they are removed from the warehouse and only for the actual quantity taken.
25Process Flow Diagram Customer Consignment Retail Sales Person Reduce the Consignment Stock at CustomerAlternative 1:Consignment IssueCreate DeliveryAlternative 2:Consignment Pick-UpOptional Process after Consignment Issue: Consignment ReturnsBilling or Credit Memo for the Consignment Return CreatedRemove the Billing BlockGoods ReceiptBillingGoods IssueConsignment Fill-UpCreate and Corfirm Transfer OrderDocument FlowConsignment Stock
26Customer ContractCustomer contracts are outline customer agreements that display when goods are purchased within a certain time period.Contracts are concluded with the customer so that the purchasing/production and sale of goods can be estimated better, which in turn enables better conditions to be negotiated.
27Process Flow Diagram Customer Contract Retail Sales Person Create Contract release Order for Value ContractCreate Contract release Order for Quantity ContractValue ContractQuantity Contract
28Product CatalogThe product catalog is the basis for printed and electronic catalogs. The catalog is maintained in the SAP ERP System and can be transported to external systems and processed as templates for print catalogs or electronic catalogs (CD-ROM or Internet). IDocs and BAPIs are available for exporting the catalog data.
29Process Flow Diagram Product Catalog Retail Sales Person Create a Product CatalogCreate Basic DataMaintain Documents and Texts in the Article MasterAdd Articles Layout Areas ManuallyPricing in the Product CatalogCreate a Layout Hierarchy ManuallyCreate Lower-Level Layout AreasDetermine the Pricing ProcedureCreate the Layout Hierarchy of the Product CatalogCustomer Pricing ProcedureMaintain ArticlesMaintain Layout AreasMaintain Texts and Documents for Articles and Layout AreasAlternative: Create Layout Hierarchy AutomaticallyLink between Promotion and Product CatalogPromotional Sales PricesCreate Document Info RecordsAdd Articles Layout Areas Using the Default ArticleCreate a Promotion Product CatalogCreate layout Hierarchy