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Sales Order Management

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Presentation on theme: "Sales Order Management"— Presentation transcript:

1 Sales Order Management
SAP Best Practices for Retail

2 Purpose, 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. Benefits The entire document chain - presales phase, order, follow-up actions - forms a document flow or history. The flow of data from one document to another reduces manual processing and facilitates problem solving. Backorder fulfillment from returns stock allows you to manage how returns are to be allocated for backorders and stock transfers: If the article is unused and can be readily shipped again, then it is quicker and more cost- effective to use it to fill sales backorders or stock transfer orders rather than to move it back to unrestricted-use stock and for subsequent picking and reshipment. Key Process Steps Creation of Standard Orders, Rush Orders, Third-Party Orders Backorder Processing and Rescheduling Creation of Customer Billing Documents Payment Handling Customer Returns Handling Subsequent Settlement Customer Consignment Handling Customer Contract Handling Product Catalog Handling

3 Required SAP Applications and Company Roles
SAP SAP enhancement package 3 for SAP ERP 6.0 Company Roles Retail Sales Person Retail Store Manager Retail Warehouse Clerk Accounts Payable Assistant Accounts Receivable Assistant

4 Sales Order / Backorder Processing and Rescheduling
Process Flow Diagram Sales Order / Backorder Processing and Rescheduling Retail Sales Person Standard Order/ Rush Order/ Third Party Order Analyze Sales Document Rescheduling Credit Limit Check Availability Check Retail Store Manager Monitor the Returns Stock after Distribution Backorder Processing and Rescheduling Run CATT Monitor the Returns Stock Retail Warehouse Clerk Dirstibute Returns Stock to Backorders Reschedule Sales Documents

5 Sales Order: Alternatives
A Sales order is a customer request to the company for the delivery of goods or services at a certain time. The request is received by a sales area, which is then responsible for fulfilling the order. Standard order: Merchandise will be collected or rather delivered and invoiced afterwards. Rush order: Merchandise will be collected or rather delivered imme- diately and invoiced afterwards. Third-party order: Merchandise will be delivered directly by the vendor to the customer. The ordering enterprise invoices to the customer Cash sales order: Merchandise will be collected and payed immediately.

6 Options in the order creation - 1
Cross Selling: due to the entered article additional related articles are suggested Dynamic Product Proposal: due to the entered customer the articles (History, PP...) connected with this customer number are suggested

7 Options 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.

8 Backorder Processing Backorder processing with a selective list for sales documents Select and process backorders for a particular article Manual processing Assignment of the ATP-quantities Check the returns stocks on goods not damaged and not used Listing of relevant requirements for sales documents

9 Rescheduling Selection of the open sales document
Positions of the selected article and availability check Analysis of the last rescheduling run

10 Customer 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

11 Customer Billing Document
Process Flow Diagram Customer Billing Document Retail Sales Person Generate Preceeding Documents via ECATT Create Billing Documnet Online on the basis of the Outbound Delivery Incoming Payment in FI Generate Collective billing Document in the Background Alternative 1 Alternative 2

12 Payment Handling The milestone billing in the billing plan is used for the payment processing of a deposit. Milestone billing means, that the total value, which should be invoiced, is divided in several partial amounts in the billing plan (percentage / absolute), they are to be paid at certain dates. A milestone billing is a schedule with particular billing dates.

13 Process Flow Diagram Payment Handling Retail Sales Person
Accounts Receivable Assistant Accounts Payable Assistant Retail Sales Person Down Payment Agreement in the Sales Oder Print the Final Billing Document (Screen) Incomimg Payment for the Down Payment Request in FI Clear the Payment that has already been made in FI Down Payment request in SD Print the Down Payment Request (Screen) Final Billing with Down Payment Clearing in SD) Incomimg Payment in FI

14 Customer 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. The returned goods are checked and a decision is made as to what to do with them, for example: breakage stock (returned to vendor or destroyed), staff sales, transfer to normal stock/distribution to backorders.

15 Process Flow Diagram Customer Return Retail Sales Person Preparations
Execution Transfer from Rerurns Stock to Blocked Stock Stock Control Goods Issue for the Free of Charge Subsequent Delivery Create a Delivery for the Free of Charge Subsequent Delivery Create a Returns Delivery Full Transfer Postingto Unrestricted-Use Stcok Release the Returns for Subsequent Processing Create a Return Monitor the Returns Stock Transfer from Blocked Stock to Return Delivery Storage location Check the Document Flow Create a Free of Charge Subsequent Delivery Remove the Billing Block Issue the Credit Memo Create Returns Order Post the Goods Receipt for the Returns Post the Goods receipt for the Returned Goods Create a Return with Free of Charge Subsequent Delivery Stock Display Create Credit Memo Release to Accounting Post the Returns Delivery

16 Process of Returns Handling
Finance: Logistics: Input of customer returns Credit note or Subsequent delivery free of charge Stock Stock correction (Input to blocked stock) Following processes Log. invoice verification Goods receipt Creation of customer returns order Stock transfer posting into unrestricted stock or Dispatching to backorders Transfer posting to returns stock Return delivery to vendor Invoice verification

17 Arrival of the return goods
Posting in blocked stock Goods receipt posting

18 Evaluation of the return goods
Control of the goods Decision of further use Transfer back to unrestricted stock Transfer to returns stock

19 Additional Use I – Unrestricted Stock
Tranfer back to unrestricted stock Allocate to open orders

20 Additional Use II – Returns Stock
Transfer back to returns stock Disposal

21 Return delivery to vendor
Subsequent process Return delivery to vendor

22 Subsequent 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.

23 Subsequent Settlement
Process Flow Diagram Retail Sales Person 8.3 Rebate Processing (in SD) 8 Subsequent Settlement 8.3.3 Update the Sales Volume 8.3.2 Create Rebate Agreement 8.3.4 Generate ‚New‘ Sales Volume Settlemenr of the Agreement(s) 8.3.1 Display the Status of Rebate Agreement Create Sales Order 8.3.5 Display Sales Volume Data Document Flow Create Billing Document Create Delivery Create Transfer Order and Corfirm with GI Outbound Delivery 8.3.6 Display Drill Downs 8.3.8 Release Agreement for Settlement 8.3.7 Carry out partcial Settlement Release Credit Memo Request for the Partial Rebate Settlement Bill Credit Memo Request for the Partial rebate Settlement 8.3.9 Create Final Settlement Bill Rebate Credit Memo Request for the Final Settlement Release Rebate Credit Memo Request for the Final Settlement 8.3.10 Display Payment History Subsequent Settlement

24 Customer Consignment Consignment goods are goods that are stored at a customer location but that are still owned by your company. From a planning point of view this stock is no longer available and is managed independently. The customer is not obliged to pay for these goods until they remove them from consignment stock. Otherwise, the customer can usually return consignment goods that are not required. Consignment processing is advantageous to both parties. Customers store the consignment goods at their own warehouses. The customer can access the goods in the consignment warehouse at any time. They are only billed for the goods when they are removed from the warehouse and only for the actual quantity taken.

25 Process Flow Diagram Customer Consignment Retail Sales Person
Reduce the Consignment Stock at Customer Alternative 1: Consignment Issue Create Delivery Alternative 2: Consignment Pick-Up Optional Process after Consignment Issue: Consignment Returns Billing or Credit Memo for the Consignment Return Created Remove the Billing Block Goods Receipt Billing Goods Issue Consignment Fill-Up Create and Corfirm Transfer Order Document Flow Consignment Stock

26 Customer Contract Customer contracts are outline customer agreements that display when goods are purchased within a certain time period. Contracts are concluded with the customer so that the purchasing/production and sale of goods can be estimated better, which in turn enables better conditions to be negotiated.

27 Process Flow Diagram Customer Contract Retail Sales Person
Create Contract release Order for Value Contract Create Contract release Order for Quantity Contract Value Contract Quantity Contract

28 Product Catalog The product catalog is the basis for printed and electronic catalogs. The catalog is maintained in the SAP ERP System and can be transported to external systems and processed as templates for print catalogs or electronic catalogs (CD-ROM or Internet). IDocs and BAPIs are available for exporting the catalog data.

29 Process Flow Diagram Product Catalog Retail Sales Person
Create a Product Catalog Create Basic Data Maintain Documents and Texts in the Article Master Add Articles Layout Areas Manually Pricing in the Product Catalog Create a Layout Hierarchy Manually Create Lower-Level Layout Areas Determine the Pricing Procedure Create the Layout Hierarchy of the Product Catalog Customer Pricing Procedure Maintain Articles Maintain Layout Areas Maintain Texts and Documents for Articles and Layout Areas Alternative: Create Layout Hierarchy Automatically Link between Promotion and Product Catalog Promotional Sales Prices Create Document Info Records Add Articles Layout Areas Using the Default Article Create a Promotion Product Catalog Create layout Hierarchy


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