Post on 07-Apr-2015
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Project Enterprise
SAP Basics for Order to Cash
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This document’s objective is to provide you an overview of:
Procure to Pay (PTP) Core Processes.
PTP Foundational Elements:
PTP related SAP Organization Structures PTP related SAP Master Data Records Key Interrelationship between SAP Organization
Structures, Master Data Records and PTP Core process SAP Document Types, Structure and Flow
Objective
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Order to Cash Overview
PTP Foundational Elements:
SAP Organization Structure
SAP Master Data
SAP PTP –Document Types, Structure and Flow
ABC of PTP Summary
Agenda
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Order To Cash - an OverviewOrder to Cash (PTP) is a fully integrated PROCESS AREA encompassing the following PROCESSES:
Sales Order Processing
Outbound Delivery & Shipment processing
Billing
The above PROCESSES are handled within the fully integration SAP system across various SAP
system modules. When working within SAP it is important to always bear in mind the strong “integrated
nature “ of SAP and how certain processes may or may not impact each other.
Key Characteristics:
All processes occur within common Company SAP Organizational Structures - predefined for all
sites.
Accuracy of master data set-up in advance of processing greatly impacts the efficiency of PTP
processes.
Key integration points are between Order to Cash and Manufacturing, Procurement and Operational
Planning.
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BillingSales Order Processing
Delivery & ShipmentProcessing
Capture the Customer’s demand for goods or services.
Delivery of goods or services from Company to Customer.
Charge the Customer for the goods or services received.
Order To Cash - An Overview
SAP Document Flow – document types created with reference to one another.
Key Processing Activity
Core Processes
Master Data
Customers Materials Prices
Sales
Order
Billing
Invoice
Delivery
Shipment
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Agenda
• Order to Cash Overview
• PTP Foundational Elements:
• SAP Organization Structure
• SAP Master Data
• SAP PTP –Document Types, Structure and Flow
• ABC of PTP Summary
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SAP Organisation Structures – an Overview
SAP Organization Structures set the framework in which Company PTP processes
are to carried out. Company SAP organization structure definitions and concepts
have been defined specific to Company operational requirements.
The following “Company SAP Organizational Structure Concepts” have been
considered:
Sales Area Concept
Plant Concept
Warehouse Concept
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Company SAP Organisation Structure – Sales Area
Concept
Client
Distribution
Channel
Company
Code
Sales
Organization
Division
Organizational Element Description
Client The highest organizational level. Commonly the name of
the SAP system on which the business is running.
Company Code Independent accounting unit with SAP. Commonly equates
to a single legal entity.
Sales Organization The selling unit in the legal sense. Within Company there
is a one-to-one relationship between Sales Organization
and Company Code.
Distribution Channel Typically defined to represent markets. Company will
operate using only one Distribution Channel for all Sales
Organization.
Division Commonly used to represent product groups. Company
will operate using only one Division for all Sales
Organization.
Sales Area Sales Organization/Distribution Channel/Division are
collectively known as “Sales Area”
The structure below reflects the SAP organizational elements and relationships as they relate to the Company Sales Area Concept.
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Client
Shipping
point
Transportation
planning
point
Company
Code
Plant
Company SAP Organisation Structure – Plant
Concept
Organizational
Element
Description
Client The highest organizational level. Commonly the
name of the SAP system on which the business is
running.
Company Code Independent accounting unit with SAP. Commonly
equates to a single legal entity.
Plant The location where materials are produced, or
goods and services are provided. This location
can be a physical or virtual location.
Shipping Point The physical location responsible for scheduling
and processing deliveries to internal and external
customers.
Transportation Planning
Point
Used to represent a group of people responsible
for planning and processing transportation
activities.
The structure below reflects the SAP organizational elements and relationships as they relate to the Company Plant Concept.
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Storage
location
Storage
location
Client
Company
Code
Plant
Storage
type
Warehouse
Storage
type
Company SAP Organisation Structure- Warehouse Concept
Organizational
Element
Description
Client The highest organizational level. Commonly the name
of the SAP system on which the business is running.
Company Code Independent accounting unit with SAP. Commonly
equates to a single legal entity.
Plant The location where materials are produced, or goods
and services are provided. Many be a physical or
virtual location.
Storage Location The organizational element allowing differentiation
between the various stocks of a material in a plant.
e.g. Finished Goods vs Returns Goods.
Warehouse The complete physical warehouse used to manage
one or more individual warehouse buildings that,
together, form a complete warehouse complex.
Storage Type A physical or logical subdivision of a warehouse
complex that is characterized by its warehouse
technique, the space used, its organizational form, or
its function.
The structure below reflects the SAP organizational elements and relationships as they relate to the Company Warehouse Concept
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• Order to Cash Overview
• PTP Foundational Elements
• SAP Organization Structure
• SAP Master Data
• SAP PTP –Document Types, Structure and Flow
• ABC of PTP Summary
Agenda
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SAP Master Data
SAP Master Data records refer to centralized information that may be
shared during SAP processing.
Key PTP related master data records include:
Customer Master Data
Material Material Data Record(this record could refer to services or
products as well)
Pricing
Each of these master records stores different kinds of data relevant to
specific SAP processes.
PTP related master records as well as the documents used in processing
are entered in dependency with the organizational structures.
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PTP Organization Structure Dependencies
Client
Distribution
Channel
Company
Code
Sales
Organization
Division
A COMPANY’s SALES ORGANIZATION processes
a specific SALES ORDER DOCUMENT TYPE for a
specific CUSTOMER requiring a specific MATERIAL
or
SERVICE at a specific PRICE - all happening within
a specific
SALES AREA (area shade in grey).
Sales
Order
Document
Type
Customer
Master
Record
Material
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PTP Master Data Records
Customer Material Prices
Material Master Record
stores information
related to materials or
services:
• Purchased
• Produced
• Stored
• Sold
Price Master records
Store information on:
• Prices
• Discounts
• Freight cost
• other charges that
might appear on an
invoice.
Customer Master Records
stores information on
Business Partners:• SOLD TO PARTY – to whom we
sell
• SHIP TO PARTY – to whom we
deliver
• BILL TO PARTY – to whom we
send the invoice
• PAYER - who pays the invoice
SAP Client
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BillingSales Order Processing
Delivery & ShipmentProcessing
PTP Master Data Records
Master Data:
Customer
Material
Prices
• Delivery Priority
• Number of deliveries
allowed
• BILL TO PARTY address details
• Customer tax liability• Terms of payment• Currency
• SOLD TO PARTY
address data
• Payment Terms
• Material Number
• Material
Description
• Base unit of
measure
• Commodity Code
• Material tax liability
• Payment Terms
• List prices
• Sales unit of
measure
• Sales tax %
• Accruals
• Freight surcharges
PTP processes are driven by data from PTP Master Data Records
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• Order to Cash Overview
PTP Foundational Elements
• SAP Organization Structure
• SAP Master Data
• SAP PTP –Document Types, Structure and Flow
• ABC of PTP Summary
Agenda
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SAP PTP - Document Types Structure and Flow
PTP document types created with reference to one another are collectively know as
“DOCUMENT FLOW”. This flow offers the user a full audit trail of process steps executed.
A DELIVERY is
created with reference
to a SALES ORDER
A delivery can take
place in: one
complete delivery or
multiple partial
deliveries.
A SALES ORDER is
a contractual agreement
between a Sales Organization
and a customer.
Details include :
– Products or services to
be sold
– Sales quantities
– Selling prices and
– Delivery times
A SHIPMENT is
created for different
types of transport e.g.
air, sea and land.
A shipment can contain
multiple deliveries.
An INVOICE is created with
reference to processed
DELIVERY.
Pricing information contained in
the invoice are defaulted from
the SALES ORDER.
Sales
Order
Document type
Billing
Document Type
(Invoice)
Delivery
Document Type
Shipment
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Sub-Process – Additional material
Document Header
Item #1
Item #2
Item #3
Item #4
SAP Document Structure
SAP follows a standard document structure which includes a
HEADER and ITEM level data.
The benefits of this document structure are:
Changes made at header level affect the entire document at
the time of saving.
Changes made at item level are independent of changes
made at header level
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Sub-Process – Additional material
Sales Order Document Structure
Schedule line 1
Item 1
Schedule line 1
Item 2
Schedule line 2
HeaderSold-to-party
Standard Order
Ship-to-party
Item Material Qty
10 XXXXX 25kg
1 01 Nov 25kg
20 XXXXX 100kg
1 01 Nov 50kg
2 01 Jan 50kg
Sold-to-party
Standard Order
Ship-to-party
Item Material Qty
10 XXXXX 25kg
1 01 Nov 25kg1 01 Nov 25kg
20 XXXXX 100kg
1 01 Nov 50kg1 01 Nov 50kg
2 01 Jan 50kg2 01 Jan 50kg
Sales Order Document: Structure
Delivery
Ship-to-party
Item Material Qty
10 XXXXX 25kg
20 XXXXX 25kg
Delivery
Ship-to-party
30 XXXXX 25kg
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Order to Cash Overview
PTP Foundational Elements
SAP Organization Structure
SAP Master Data
SAP PTP –Document Types, Structure and Flow
ABC of PTP Summary
Agenda
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ABC of PTP SummarySAP PTP FOUNDATIONAL ELEMENTS to remember:
SAP ORGANISATION STRUCTURES are the framework in which PTP processes are carried out .
PTP MASTER DATA records refer to centralized information that may be shared during SAP processing.
PTP DOCUMENT TYPES created with reference to one another are collectively know as “DOCUMENT FLOW”. This flow offers the user a full audit trail
of process steps executed.
Sales
Order
Document
Type
Billing
Invoice
Client
Distribution
Channel
Company
Code
Sales
Organization
Division
A COMPANY’s SALES ORGANISATION processes
a specific SALES ORDER DOCUMENT TYPE for a
specific CUSTOMER requiring a specific MATERIAL or
SERVICE at a specific PRICE - all happening within a specific
SALES AREA (area shade in grey).
Customer
Master
Record
Material/
Service
Delivery
Shipment
SAP DOCUMENT FLOW
Price
PTP core processes