1. Sales & Distribution Processes EGN 5620 Enterprise Systems Configuration (Professional MSEM) Fall, 2011

2. Sales & Distribution Processes Theories & Concepts EGN 5620 Enterprise Systems Configuration (Professional MSEM) Fall, 2011

3. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.3 Delivery Scheduling When you create/change a sales document, such as adding schedule lines or rescheduling, delivery scheduling should be carried out for all the schedule lines, new and old. You can specify for each sales document type that the system is to schedule deliveries backwards and/or forwards.

4. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.4 Delivery Scheduling Terminology working times in the shipping point can be in the unit of hours or days Each ERP maintain different working times in the shipping point, and unit time specification including hours, minutes, and seconds.

5. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.5 Delivery Scheduling Terminology You can also enter the factory calendar of the forwarding agent for the route when you define the transit time. This factory calendar can be different from your company's calendar. For example, the forwarding agent might operate a 6- day-week. You may only enter the transit time in days with two decimal places, even if you have maintained the working times in the shipping point.

6. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.6 Delivery Scheduling Terminology If you cannot backward schedule the system will forward schedule for you. The material is available on the 2 nd Simultaneously we can schedule the longer of pick and pack and scheduling time: 2 days: 4 th Loading time is 1 day: 5 th 2 day delivery time: the customer can have the goods on the 7 th.

7. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.7 Forward Scheduling Transit Time (2 days) Loading Time (1 day) Transp. Sched. Time (1 day) New Delv. Date 1st3rd4th5th6th2nd Pick & Pack Time (2 days) 7th Requested Delv. Date Goods Issue Loading Material Availability Order Date Transp. Sched.

8. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.8 Delivery Scheduling Terminology Backward scheduling calculates backward from the requested delivery date: In this example below the requested date is the 6 th Transit time is 2 days – 4 th Loading time is one day – 3 rd Pick and pack and transportation scheduling can be done simultaneously: the longer of which is 2 days – 1 st

9. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.9 Backward Scheduling Requested Delv. Date Goods Issue Loading Material Availability Order Date Transp. Sched. Transit Time (2 days) Loading Time (1 day) Pick & Pack Time (2 days) Transp. Sched. Time (1 day) 2nd3rd4th 5th 6th1st

10. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.10 Delivery Scheduling If backward scheduling determines a date in the past as the date on which a schedule line becomes due for shipping or if the material will not be available on the date calculated, the system automatically carries out forward scheduling to determine the earliest possible shipping deadline. For example, starting from the current date, the system calculates the loading deadline, the goods issue deadline, and then the confirmed delivery date. It does this by adding together the shipping times mentioned above.

11. Sales & Distribution Processes SAP Implementation EGN 5620 Enterprise Systems Configuration (Professional MSEM) Fall, 2011 Sales & Distribution Processes SAP Implementation EGN 5620 Enterprise Systems Configuration (Professional MSEM) Fall, 2011

12. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.12 Business Process Integration FI MM SD Org Data Rules FI MM SD Master Data FI MM SD FISD MM

13. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.13 Pen Incorporated Procure for Sales Order Pre-Sales Activity Sales Order DeliveryBilling General Ledger Accounts Purchase Requisition Purchase Order Goods Receipt In Inventory Plant or Warehouse Invoice Receipt Availability Check NO YES Goods to Delivery Goods from Purchase Order Inventory Postings Accounts Receivable Accounts Payable

14. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.14 Business Process Integration SD Processes

15. Sales Process January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.15 Sales Order Process (Order-to-Cash) Integration Sales Order Entry Post Goods Issue Invoice Customer Delivery Note & Pick Materials Receipt of Customer Payment Pack Materials Check Availability Pre-Sales Activities Sales Quotation Entry

16. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.16 Activities in SD Process 1. Engage in pre-sales activities 2. Create quotations and send to customers 3. Create sales orders, item proposal, or scheduling agreement 4. Create delivery note 5. Create/send invoice to customer (billing) 6. Receive/post payment from customer 7. Handle sales order return

17. SD1: Engage in Pre-Sales Activities Pre-sales Activities: ◦Initiate customer contacts and communications (sales activity) via: Phone call records On-site meeting Letters Campaign communication ◦Implement and track  direct mailing,  internet, and  trade fair campaigns based on customer attributes Pre-sales documents : Inquiries and Requests for Quotation.

18. SD2: Create quotation to customer The quotation presents the customer with a legally binding offer to deliver specific products or a selection of a certain amount of products in a specified time frame at a pre- defined price.

19. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.19 Customer-Specific Material Info Record Data on a material defined for one specific customer is stored in the customer material information records It contains customer-specific: ◦Material number, ◦Material description, and ◦Data on deliveries and delivery tolerances

20. SD3: Create Sales Order Sales order processing can originate from a variety of documents and activities ◦Customer contacts us for order: phone, internet, email ◦Existing Contract ◦Quotations The electronic document that is created should contain the following basic information: ◦Customer Information ◦Material/service and quantity ◦Pricing (conditions) ◦Specific delivery dates and quantities ◦Shipping information ◦Billing Information

21. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.21 Sales order: Item Proposal If a customer frequently orders the same combination of materials, SAP can store the frequently used data as an item proposal in the system. During sales order processing, the user can copy all or some of the materials and quantity data from the item proposal directly into the sales order (document) Item proposal can be assigned to one or multiple customer master records

22. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.22 Sales order: Scheduling Agreements Used in JIT environment for suppliers to deliver a material on a delivery schedule pre-agreed upon with the customer user. Availability check is performed during creation and quantities are passed to MRP, which routinely releases a quantity of the material at a regular time interval.

23. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.23 Scheduling Agreements Delivery 02/10 150 Delivery 05/10 150 Delivery 08/10 150 Delivery 11/10 300 Scheduling Agreement DateQty 02/15150 05/15150 08/15150 11/15300

24. SD3: Create Sales Orders The sales order document is made up of three primary areas: ◦Header Data relevant for the entire sales order: customer data, total cost of the order, number of the sold-to party, number of the ship-to party and the payer, document currency and exchange rate, pricing elements for the entire document, delivery date and shipping point order ◦Line Item Information about the specific product: Ex: material and quantity, cost of an individual line ◦Schedule Lines Uniquely belongs to a Line Item, contains delivery quantities and dates for partial deliveries

25. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.25 SD3: Create Sales Order Item Data Whereas data in the document header applies to all items in the document, some data applies only to specific items. This data is stored at item level and includes the: Material number Target quantity for outline agreements Number of the ship-to party and the payer (an alternative ship-to party or payer can be defined for a particular item) Plant and storage location specifications Pricing elements for the individual items Schedule line data

26. SD3: Create Sales Order A created sales order contains all of the information needed to process customers request. As each sales order is being determined, the following steps are performed: 1.Pricing 2.Credit limit check 3.Availability Check 4.Delivering Schedule 5.Shipping point and route determination 6.Transfer of requirements to MRP 7.foreign trade and license processing

27. SD3-1: Pricing SAP displays pricing information at both the header and the line item level for sales order. ◦Header pricing is valid for the whole order it is the cumulative of all line items within the order ◦Line item pricing is for each specific material. ◦It shows gross to net pricing for materials

28. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.28 SD3-1: Pricing Enabling the users to program varied pricing procedures to meet individual organizations needs. The pricing is extendible: can be attached, or extended to external pricing programs or elements outside SAP for pricing. It also allows Gross to Net pricing: This allows discounts and reductions from the ‘master’ price.

29. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.29 SD3-2: Credit Check Efficient means to implement credit management Integrated with Financial Accounting (FI) -- Via credit control area Automatically alerts when a credit check fails Comprehensive credit management reporting

30. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.30 SD3-2: Credit Check A large number of outstanding receivables or bad debts can have a considerable impact on company performance. Minimize credit risk by defining a credit limit for customers by using Credit Management. This is especially important if do business with customers in financially unstable sectors or countries, or trade with countries that are politically unstable or that adopt a restrictive exchange rate policy.

31. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.31 SD3-2: Credit Check If you implement the Accounts Receivable (FI- AR) application component to manage your receivables, Credit Management enables you to assign a credit limit to each customer (even a non-SAP system is used for sales and distribution processing) When you post an invoice (in FI-AR), SAP checks whether the amount exceeds the credit limit. Facilities like the credit master sheet or early warning list help you monitor the customer’s credit situation.

32. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.32 SD3-2: Credit Check If you implement both the Accounts Receivable (FI- AR) and Sales and Distribution (SD) application components, you can specify in customizing when at what point of order, delivery, goods issue and so on and to what extent a check on the customer’s credit limit is to take place by the system. You can define automatic credit limit checks according to a range of criteria and in line with the company’s requirements.

33. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.33 SD3-2: Credit Check Credit representative is automatically alerted to a customer’s critical credit situation as soon as order processing starts. Relevant employees can be automatically notified of critical credit situations via internal mail. Credit representatives are able to check a customer’s credit situation quickly and reliably, and, in line with the appropriate credit policy, to decide whether the customer should be granted credit.

34. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.34 SD3-2: Credit Check Credit Management can be worked in distributed system. A distributed system is one with central financial accounting and non-central sales and distribution on several sales and distribution computers. Credit and risk management takes place in the credit control area, while Credit limits and credit exposure are managed at both credit control area and customer level. According to corporate requirements, you can implement credit management that is centralized, decentralized, or somewhere in between.

35. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.35 SD3-2: Credit Check For example, if your credit management is centralized, you can define one credit control area for all of your company codes. If, on the other hand, your credit policy requires decentralized credit management, you can define credit control areas for each company code or each group of company codes.

36. SD3-3: Availability Check Availability Check ◦Determines the material availability date ◦Considers all inward and outward inventory movements Proposes 3 methods of delivery ◦One-time delivery ( on- time one-time delivery) ◦Complete delivery (possibly delayed one- time delivery) ◦Delayed proposal (allows partial delivery schedule)

37. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.37 SD3-3: Availability Check Influences partial deliveries by ◦Proposing a quantity that can be delivered on the requested date (complete delivery) ◦Determines earliest date for full delivery ◦Determines the number and dates for partial deliveries to fulfill the order

38. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.38 SD3-3: Availability Check In determining the material availability the following elements can be included in the availability check ◦Safety stock ◦Stock in transfer ◦Quality inspection stock ◦Blocked stock ◦Restricted use stock ◦All movements of stock

39. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.39 SD3-3: Availability Check Inward/Outward movement of goods ◦purchase orders ◦purchase requisitions ◦planned orders ◦production orders ◦reservations ◦dependent reservations ◦dependent requirements ◦sales requirements ◦delivery requirements

40. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.40 SD3-3: Availability Check When enter a sales order, you can only confirm the delivery of the goods for the required delivery date if the goods are available for all the necessary processing activities which take place before delivery. The shipping department must ensure that freight forwarding or another shipping company is advised early enough so that sufficient time remains for packing and loading to be carried out. An availability check can be carried out on the deadline date for availability for the goods.

41. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.41 SD3-3: Availability Check If the goods ordered by the customer are not available on the requested date, the system branches automatically during sales document processing to a further screen where delivery proposals are offered for selection. The system determines these proposals on the basis of the availability situation. This screen also provides with information on the scope of the check, the current ATP quantity, and the availability situation across all plants.

42. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.42 SD3-3: Availability Check One-time delivery 1. Deliver on the requested delivery date 2. In this section, SAP checks whether the requested delivery date can be kept to. If stock of the material is available to make a delivery on the requested delivery date, the stock quantity is confirmed here. 3. If there is no stock available, confirmed quantity zero is displayed.

43. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.43 SD3-3: Availability Check Complete delivery In this section, SAP checks whether there will be sufficient stock for complete delivery at a later date: ◦If there is sufficient stock available at a later date to cover the required quantity in the sales document, the system proposes the date here. ◦If the system determines that complete delivery cannot be made at a later date, no date is proposed in this section.

44. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.44 SD3-3: Availability Check Delayed proposal In this section, SAP checks whether and for which dates partial deliveries can be made. Partial deliveries are displayed for different dates. These dates are based on the planned inward and outward movements of stock. During an availability check which takes replenishment lead time into account, the date on which replenishment lead time ends is displayed if insufficient stock means that no partial deliveries can be made before replenishment lead time ends.

45. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.45 SD3-3: Availability Check During an availability check, SAP does not take replenishment lead time into account SAP displays the dates on which partial deliveries can be made with the available stock.

46. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.46 SD3-4: Delivery Scheduling Automatic scheduling of essential shipping activities Calculated using defined activity times Resulting in scheduled activity dates Determined using backward and forward scheduling rules

47. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.47 SD3-4: Delivery Scheduling Terms used in scheduling are defined below. Transit time is the time in days that is required to deliver goods from your premises to the customer location. It is defined for a route. Loading time is the time in days that is required for loading a delivery item. It is determined from the shipping point, the route, and the loading group of the material. Pick/pack time is the time in days that is required for allocating goods to a delivery as well as the time in days that is required for picking and packing. It is calculated using the shipping point, the route, and the weight group of the order item. Transportation lead-time is the time in days that is needed to organize the shipping of the goods. This might include booking a ship and reserving a truck from a forwarding agent. It is defined for a route.

48. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.48 SD3-4: Delivery Scheduling The following deadlines are of importance for delivery processing: Material availability deadline: must start picking and packing activities on the material availability deadline. This deadline must be selected early enough in advance so that the goods are ready by the given loading deadline. Transportation scheduling deadline: the date on which you must start to organize the transportation of the goods. This deadline must be selected early enough to ensure that the means of transport is available by the loading deadline.

49. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.49 SD3-4: Delivery Scheduling Loading deadline: the date on which the goods must be available for loading and on which all vehicles that are required to ship these goods must be ready for loading. After the time required for loading the goods (loading time) has expired, goods issue can be carried out. Goods issue deadline: the date on which the goods leave the company in order to arrive punctually at the customer location.

50. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.50 SD3-4: Delivery Scheduling Delivery deadline: the date on which the goods are to arrive at the customer location. The difference between the goods issue deadline and the delivery deadline is calculated from the transit time required for the route between the delivering plant and the customer. The delivery deadline can be the customer's requested delivery deadline or the confirmed delivery date (that is, the earliest date on which you can deliver goods to the customer).

51. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.51 SD3-4: Delivery Scheduling During order entry, each schedule line for an item can contain a requested delivery deadline. Goods should arrive at the customer on this date. At the order processing stage, the system can automatically schedule when the essential shipping activities such as picking, loading and transporting must be started so that the requested delivery date can be kept.

52. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.52 SD3-4: Delivery Scheduling An item consists of one or more schedule lines. The schedule line contains all the data that is needed for a delivery. For example, a customer orders 20 units of a particular material which you enter as one item in the sales order. However, you can only deliver 10 pieces now and the remaining 10 pieces next month. So you need to schedule two deliveries. The data for these deliveries (dates, confirmed quantities) are stored in two separate schedule lines.

53. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.53 Delivery Scheduling – (continued) Structure of sales documents Header Line Item # 1 Line Item # 2 Schedule Line # 1 Schedule Line # 2

54. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.54 SD3-5: Shipping Point and Route Determination A shipping point is determined for each line item A delivery can only be processed from one shipping point Routes - route to be traveled & transit time are determined using customized rules Routes can be used to simply define transit time

55. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.55 Sales order is transferred to MRP as a Customer Independent Requirement (CIR). If a deficit is found, SAP will propose a purchase req. or planned order to fulfill the shortage after running MRP or MPS. Sales and distribution requirements reduce existing stock or inward movements of stock on the material availability date to ensure that other outward movement of stock elements cannot access the quantity reserved in this way. SD3-6: Transfer of requirements to MRP

57. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.57 SD3-7: Foreign Trade and License Processing Predefined trade areas — NAFTA, EU Automated reporting for trade areas Automated controls ◦License management ◦Embargo lists ◦Control by customer, country, product, point in time

58. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.58 SD4: Create Delivery Notes Initiates the delivery process Control mechanism for the process Changes to delivery are allowable - products, quantities Integrated with the Material Management (MM) and Finance (FI) modules Picking Packing Loading Post Goods Issue Delivery Note Each step in the delivery process updates the delivery note status

59. SD: Shipping Order Combination Sales Order 1 Sales Order 2 Sales Order 3 Delivery 8…12 Partial Delivery Sales Order 4 Delivery 8…13 Delivery 8…14 Delivery 8…15 Complete Delivery Sales Order 5 Delivery 8…16

60. SD4-1: Picking Quantities based on delivery note Assigned date when picking should begin Automated storage location assignment Supports serial number/lot number tracking and batch management Integrated with Warehouse Management (WM)

61. SD4-2: Loading and Packing Identifies which packaging is to be used for specified products Identifies and updates accounts associated with returnable packaging Tracks the packed product by container Insures weight/volume restrictions are enforced All packed items are assigned to the required means of transportation

62. SD4-3: Goods Issue Event that indicates the legal change in ownership of the products Reduces inventory and enters Cost of Goods Sold Automatically updates the General Ledger (G/L) accounts Ends the shipping process and updates the status of the shipping documents

63. Delivery/ Goods Issuing Reconciliation Account Sales quotation Sales order Materials Management (MM) and Financial Accounting (FI) Delivery/Goods Issuing No impact on Financial Accounting (FI) Dr Cr Inventory (Trading, F/G) $100 Dr Cr COGS $100

64. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.64 DS5: Create/Send invoice to customer (Billing) Automated invoicing based on sales orders and/or deliveries The billing process is used to generate the customer invoice. Functionality for processing credit/debit memos and rebates Integration with Financial Accounting (FI) and Controlling (CO) Updates customer’s credit data Can create pro forma invoices

65. DS5: Billing Overview It has the functions of processing credit/debit memos and rebates It automates invoicing, based on sales orders and/or deliveries It can create pro forma (paper) invoices It is integrated with Finance (FI) & Controlling (CO) It updates customer’s credit data January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved.65

66. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.66 DS5: Billing Sales Invoice Sold To: Rushmore Group Sales Org: S001 Dist Channel: RE Division: 01 Conditions/Price: $120 General Ledger Account Assignment Debit Credit CustomerA/R Recon 120 Revenue Debit Credit 120

67. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.67 DS5: Billing Methods Collective Invoicing Delivery based Invoicing Delivery 8…34 Delivery 8…33 Order 14 Order 9 Delivery 8…56 Invoice 9…68 Order 6 Delivery 8…20 Delivery 8…21 Invoice 9…45 Invoice 9…46 Split Invoicing Order 32Delivery 8…86 Invoice 9…92 Invoice 9…91

68. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.68 DS5: Billing Documents Explicitly specify documents Billing due list — builds a work list of invoices that should be generated Automatic posting to Financial Accounting (FI): debit to customer sub-ledger account and credit revenue account.

69. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved.69 DS5: Automatic Account Assignment DS5: Automatic Account Assignment Defines the General Ledger (G/L) accounts that billing entries are posted ◦Revenue ◦Deduction ◦Freight charges ◦Other applicable General Ledger (G/L) accounts

70. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.70 DS5: Billing Plans Periodic — total amount for a planned billing period Milestone — distributing the total amount over multiple billing dates - typically used with the project system (PS) Installment — evenly proportioned amounts and defined payment dates Resource related — consumed resources such as service or consulting

71. Dr Cr Sales Revenues $120 Billing Reconciliation Account Billing amount is assigned and transferred to customer account receivable Billing Dr Cr Account Receivable (AR) $120 Dr Cr Customer (sub-ledger) $120

72. SD6: Payment Payment is the final step in the sales order process, this step is managed by the Financial Accounting department. Final payment Posts payments against invoices. Payment will create a posting clearing the liability in the A/R account and increasing your bank account.

73. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.73 Accounts Receivable Integration Revenue Increase to A/R Goods Issue Sales Order Income Statement Balance Sheet COGS Decrease to Inventory SD Sales and Distribution

74. Customer Payment Amount is paid by Customer and account receivable is reduced Bank Dr Cr Account Receivable (A/R) $120 Dr Cr Bank $120 Customer (sub-ledger) Dr Cr $120

75. Sales Process January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.75 SD7: Handle Customer Return Customer Return Order received Goods Receipt Create Credit Memo Quality Inspection Payment to Customer Delivery Note

76. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.76 SD7: Handle Customer Return 1 2 3 Order 14Delivery 8…56 Return OrderReturn Delivery Invoice 9…68 PaymentCredit Memo Quality Inspection Return to Inventory

77. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.77 SD7: Handle Customer Return Returns document ◦Billing block can be proposed ◦Use the Order reason field to identify the reason for the return ◦Full access to pricing and ability to re-price Return delivery ◦Issues a goods receipt to place material into inventory

78. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.78 SD7: Handle Customer Return Credit memo ◦Billing block must be cleared from Return ◦Posts to Financial Accounting (FI) ◦Can be processed in batch (background) ◦Can be processed collectively (grouped)

79. PEN, Inc. EGN 5620 Enterprise Systems Configuration (Professional MSEM) Fall, 2011 PEN, Inc. EGN 5620 Enterprise Systems Configuration (Professional MSEM) Fall, 2011 Sales & Distribution Processes

80. Enterprise Structure in Pen Inc. (review) Plant (P _ _ _) Client (705) Chart of Accounts (C _ _ _) Company Code (C _ _ _) Fiscal Year Variant (2011) Credit Control Area (C _ _ _) Shipping Point (S _ _ _) Sales Org. S _ _ _ Distribution Channel (RE, WH) Division (01) Sales Area (S _ _ _) Controlling Area (C _ _ _) SL10SL20

81. Sales Quotation

82. Sales Order

83. SD Process: Billing Documents At this point that the sales process is passed over to Financial Accounting to await payment.

84. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved.84 Document Flow The document flow feature allows you to find the status of an order at any point in time. The SAP system updated the order status every time a change is made to any of the documents created in the customer order management cycle (Order to Cash).

85. Exercises: 144a. Create customer quotation 144. Create sales order from sales quotation 145. Check stock status 146. Create delivery note for sales order 147. Check stock status 148. Picking materials on delivery note 149. Post goods issue 150. Check stock status 151. Bill customer 152. Post receipt of customer payment 153. Review document flow 154. Create Customer Material Info Record 155. Create sales order using customer info record 156. Create delivery for sales order 157. Pick materials on delivery note

86. Exercises: 158. Post goods issue 159. Bill customer 160. Post receipt of customer payment 161. Create a scheduling agreement 162. Process deliveries for a scheduling agreement 163. Display scheduling agreement 164. Check stock status 165. Bill customer 166. Run customer credit check 167. Post receipt of customer payment