Order Fulfillment I part 1 T-SCM60 part 1 of 2:

Process in Sales and Distribution

Monica Radytia Chrismawati

Overview

• Enterprise Structures in SD & Overview of Sales Process

• Master Data in SD

• Sales From Stock – Available

• Sales From Stock – Shortage

• Make-to-Order

• Return and Credit Memo Processing

Sales Order Management

Sales Process in SAP

Presales Sales Order

Outbound Delivery

Transfer Order

(Picking)

Billing (Invoice)

Payment

Customer

Quotation Inquiries VA01 – Create Sales Order Save Doc. Number generated. VL01N – Create Outbound Delivery Save Doc. Number generated. Stock di warehouse belum berkurang. LT03 – Create Transfer Order Save Doc. No. Generated. Stock di warehouse belum berkurang. VL02N – Change Outbound Delivery Posting Good Issue. Stock di warehouse berkurang pada saat posting good issue. Update nilai di balance sheet untuk akun inventory. VF01 – Create Billing document Save Accounting document’s status Cleared

Organizational Units in SD

• Company code Legal entity and independent accounting unit.

Smallest organizational unit in external accounting.

• Sales Area

• Sales Organization

• Distribution Channel

• Division

• Plant

• Storage Location

• Shipping Point

Sales Organization

• Highest organization unit in Sales.

• Sales Org. is assigned to exactly a Company Code (CC).

• Sales Org. is assigned to one or more plants.

• The function of sales organization:

Determine responsibilities for:

• pricing structure, strategic to distribute goods & services, terms of

sales (sales condition), product claim, guarantee.

Sales Organization

• Relationship with Company Code: • CC : S. Org = 1 : N

• S. Org : CC = 1 : 1

• The reasons why it is possible to have more than one

Sales Org. :

• Different legal responsibilities to distribute different products lines

separately. Eg: medicine & veterinary medicine.

• Separated sales activities of different enterprise areas (marketing &

distribution purposes). Eg: domestic & export market.

• etc

Sales Org.

vs Sales

Area

• Sales Org. is a member of sales area.

• Sales org. together with distribution channel, and division create a sales area.

• Sales area represents geographical aspect of the particular company code, from there we can generate the reports.

• All SD documents belongs to sales area.

• In Sales Area there are sales office, sales group, and sales people to represent the representative office of sales.

Plant in SD

• Represents the location from which material (stocks) and services are

distributed.

• A plant must be uniquely assigned to a company code.

• It is possible that a plan belongs to different company code (inter-

company sales / cross-company sales).

• Sales Org. : Plant = N : N

• The plant is essential for determining the shipping point.

• Sales org. is assigned to plant through distribution channel.

Delivering Plant

• A plant to deliver goods to customers.

• Verify the stocks and later supply the goods the customers has ordered.

• A plant can be assigned to several distribution chains (distribution channel) as a delivering plan.

• Delivering Plant:

• Sales org. + distribution channel = delivering plant

Shipping

• Shipping Process:

• Outbound delivery

• Picking (Transfer Order)

• Packing

• Posting Goods Issue

• Shipping point is the highest organization unit of shipping.

• Shipping point is assigned at plant level.

• Plant : Shipping Point = N : N

Outbound Delivery

• Shipping Point : Outbound Delivery = 1 : N,

prerequisite:

• Shipping Point

• Due Date

• Ship-to address

same

Billing

Master Data in SD

SD Master Data

Material

Cust/

Material Info

Output Customer

Condition

- General Data - Company Code Data - Sales Area Data

- Prices - Discount - Freight/Incoter

ms - Taxes

- Cross reference material number

Customer Master Data

Mandatory fields:

- Account group (specific partner function)

- Cust. No

- Company code

- Sales Area (Sales Org/Dist. Channel/Division)

- General Data (last name, search term, city, country)

- To be used in all org. unit within a client.

- Company Code Data (Reconciliation account (G/L))

- To be used in accounting.

- Sales Area Data:

- Billing doc: Tax Classification

- Partner Function (Sold-to-party, Bill-to-party, Ship-to-party, Payer)

Customer Master Data

cont’d

The function to define Sales Area (Sales Org., Dist. Channel, &

Division) when creating customer master:

- Defined payment terms for each customer based on product sold

- Defined condition master

- Classified customers based on products sold to them.

- Make it possible to assign a customer to different sales area.

Customer - Material Info

Master Data

• Mapping customer’s defined material with code material

belongs to company.

• Mapping default value for delivering plant, delivery

priority, min. order, partial delivery to specific customer.

• E.g:

• Sampoerna A Mild T1002

• Customer X can only be served by delivering plant 1000.

Condition Master Data

• Prices

• Surcharges / Discount

• Freights (incoterms: CRF, CIF, FOB, etc)

• Taxes

Condition Master Data

Automatic Pricing

Sales Document Types

• Standard Order

• Cash Sales

• Rush Order

• Free-of-charge delivery

• Returns

• Consignment Fill-Up

• Credit/Debit Request

SO vs Cash Sales vs Rush Order

Standard Order Cash Sales Rush Order

Delivery & invoice on a fixed date

Delivery + invoice immediately

Delivery immediately, invoice later

Normal order Billing related Delivery related

Relevant for availability check.

Not relevant for availability check as you will be picking the goods directly.

Relevant for availability check.

Relevant for credit management

Not relevant for credit management

Relevant for credit management

Cust. Account group: SP Cust. Account group: one time

?

Example: Standard Order Example: buy in supermarket

Example: Delivery is made on the same day as when the order was created

Availability Check

• Take place on MAD (Material Availability Date)

• Function:

• To check current stock

• Planned inwards movements (PO, PR, etc).

• Forecast outwards movements (existing SO, deliveries, etc).

Backward Scheduling

Backward Scheduling

Requested delivery date - transit time = Goods issue date

Goods issue date - loading time = Loading date

Loading date - transportation lead time = Transportation scheduling

date

Loading date - pick/pack time = Material availability date

Fordward Scheduling

Forward vs Backward

Scheduling

If (MAD + Pick/pack time + Loading Time + Transportation < Req. Dev. Date) {

Backward Scheduling

}else{

Forward Scheduling

}

Delivery can be made if:

• Stocks are available for picking.

• Delivery documents (outbound delivery &

transfer order) already made.

• Req. Delivery Date != Replenishment Lead Time.

Make-to-Order

Materials are not stored in the warehouse

but produced especially for a particular

order.

Item Category

• Provide additional control for sales document.

• System can process a material differently in each sales

document type.

• Item Categories type:

• Standar Item

• Free-of-charge item (inclusive / exlusive free goods)

• Non-stock item

• Text Item

Return & Credit Memo

Processing

• Damaged goods

• Incorrect invoices

• It is made after:

• Created a sales order

• Delivered the goods and billed the customers for the goods

THANK YOU