The Fulfillment Process. Slide 2 Introduction to Fulfillment The fulfillment process involves...
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Transcript of The Fulfillment Process. Slide 2 Introduction to Fulfillment The fulfillment process involves...
Slide 2
Introduction to Fulfillment The fulfillment process involves
Creating customers Creating sales orders Receiving purchase orders from customers Shipping orders Sending and processing invoices Processing payments Managing credit
Slide 3
Organizational Units (SD Summary)
Global Bike
Global Bike Inc. Global Bike Germany GmbH
US West US East Germany North Germany South
Dallas Miami Hamburg Heidelberg
Client
CompanyCode
SalesOrganization
Sales OfficeSan Diego
Slide 4
Organizational Units (Company Code) Smallest org unit for which you can
maintain a legal set of books (financial accounting)
Global Bike has two company codes
Slide 5
Organizational Units (Company Code) Table T001 contains the company code
A company has a currency (fields LAND1 WAER)
Slide 6
Organizational “grouping” Units Divisions categorize what we sell (TSPA)
Distribution channels categorize how we sell what we sell (TVTW)
Slide 7
Organizational Units (Division) Division
A way of grouping materials, products, or services
SAP uses the division for logistics functions Global bike has two divisions
Bicycles and accessories
Slide 8
Organizational Units (Division) Table TSPA stores divisions
Divisions are create for the entire client Various organizational units are assigned
to divisions as you will see
Slide 9
Organizational Units (Distribution Channel) Distribution channel
This is the means by which goods are delivered to the customer
Wholesale, retail, online, are typical distribution channels
See Figure 5-3 Magal
Slide 11
Organizational Units (Sales Organization) Responsible for sales and distribution of goods
for a geographical area A sales organization can sell through many
distribution channels We can restrict a sales organization to specific
distribution channels
Slide 12
Organizational Units (Sales Organization)
Global Bike has the following sales organizations
Slide 13
Organizational Units (Sales Organization) One sales organization can have many
distribution channels or just one Table TVKOV
Slide 14
Organizational Units (Sales Organization) One sales organization can sell through
many divisions Table TVKOS
Slide 15
Organizational Units (Sales Area) Combination of Sales Organization,
Distribution Channel and Division A sales area sells materials to
customers through a distribution channel for a division of the company
Determines conditions (i.e. pricing) for sales activities Much more later
Defined in table TVTA
Slide 17
STATUS REPORT A company is organized into sales areas Those sales areas sell materials to
customers A sales area is a unique combination of a
sales organization, distribution channel, and division
Here we focus on the customer
Slide 18
Master Data (Customer) Contains all information about a
customer Every customer must have a master
record Customer master data is divided into
three areas General data (table KNA1) Company code / accounting (table KNB1) Sales area (table KNVV)
Slide 19
Customer (General Data) General data is defined at the client
level (name, address, account number) It applies to all company codes and sales
areas The other tables assign customers to
sales areas and accounting areas
Slide 20
Customer (General Data) Table KNA1 contains customer, address
information, and global customer classification information
Slide 21
Customer (Company Data) Mostly made up of accounting data
(also called the accounting segment) for a particular company (US00) (DE00) Payment terms Company reconciliation accounts
It defines the rules by which the accounting department for the company must abide
Defined in table KNB1
Slide 22
Customer (Sales Area Data) Combination of a sales organization,
distribution channel and division Describes HOW we sell materials to a
customer
Slide 23
Customer (Sales Area Data) The data relates to
Shipping, exchange currency, preferred delivery plant, delivery policies
If a customer is serviced by multiple sales areas, a separate sales area data must be maintained
Sales areas maintained in table KNVV
Slide 26
STATUS REPORT A company is organized into sales areas Those sales areas sell to customers
Materials are stored in plants Customers buy materials from a sales
area, which ships those materials from a plant
Slide 27
Organizational Units (Plant) Plant from which the goods are produced
and / or delivered Global Bike has manufacturing and
distributing plants
Slide 29
Organizational Units (Other) Other SD organization units:
Shipping Points are responsible for scheduling and processing deliveries to customers
Shipping points apply to plants Loading Point
Think of a loading point as a loading dock at a warehouse
Sales Office Sales Group Sales Person
Slide 30
STATUS REPORT A company is organized into sales areas Those sales areas sell to customers Materials are stored in plants Customers buy materials from a sales
area, which ships those materials from a plant
Slide 31
Master Data (Material) Remember that vendors sell us
materials These are the same materials discussed in
the previous chapter Trading goods
We make materials for resale too Finished goods
Again, materials are stored and displayed in functional segments called views
Slide 32
Relevant Material Views (Sales 1) Basic data Sales organization data
Item category group defines the kind of item
Standard material / packaging The delivering plant and responsible sales
organization Plant data
Describes how the material will be shipped Loading methods
Slide 33
Relevant Material Views (Sales 2) What if two plants distribute the same
material? There must be a unique material for
every combination of Sales organization Distribution channel
Slide 34
The Fulfillment Process Presales activities (these are optional)
Quotations Outline agreements
Sales activity Generate sales order
Shipping Picking documents, delivery, goods issue
Payment
Slide 35
Pre-sales Activities Sales support and CRM Quotation
It’s our offer to the customer to supply selected products and at a specific price with specific delivery instructions
Slide 36
Sales Order It’s a binding contract between our
company and the customer Created though
Internet orders Existing contracts Sales quotations (just discussed)
Slide 37
Sales Order (Contents) Customer specific
Contains customer information, pricing, and material information
Order specific Pricing Shipping point Material information Delivery information Credit limit check MRP transfer
Slide 38
Sales Order (SAP) As usual it contains a header, line items,
and detailed schedule lines Header – sales order information Line Item(s) – product and quantity
information Schedule line – delivery and partial
delivery information
Slide 39
Sales Order The sales document is made
up of three primary areas: Header
Data relevant for the entire sales order: Ex: customer data, total cost of the order
Line Item(s) Information about the
specific product: Ex: material and quantity, cost of an individual line
Schedule Line(s) Uniquely belongs to a Line
Item, contains delivery quantities and dates for partial deliveries
Slide 40
Delivery Scheduling Orders don’t necessarily ship
immediately We must often request a delivery date
This delivery date must be “possible” The system helps perform the delivery
scheduling Scheduling is performed using backward
and forward scheduling rules
Slide 41
Delivery Scheduling (types) Backward
Work from the requested delivery date back to the order date
Forward Work form the order today toward an
expected deliver date
Slide 42
Shipping and Routing Information Determines the shipping point for each
line item (material) An order can be shipped from multiple
warehouses The route determination is used to
define the transit time from the shipping point to the destination
Slide 43
Availability Check We can check the material availability
considering inbound and outbound inventory movements
It’s possible to deliver partial orders You – the company, define the rules
Slide 44
Order Pricing Contains all pricing information for each
specific material Taxes and freight can be calculated
automatically Customers can have defined credit
limits SAP can be configured to block orders
Slide 45
Shipping (Deliver) The process begins when the sales
orders delivery documents are created The process is make up of
Picking Packing Loading Confirmation (post goods issue)
Slide 46
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)
Slide 47
Packing and Loading 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
Slide 48
Shipping (steps) Generates packing proposal Calculates weight and volume Checks scheduling Considers partial deliveries Updates route assignment Assigns picking location Updates sales order Determines batches Quality check (if needed) Updates sales order
Slide 49
Goods Issue It’s the change of ownership of our
products from our company (Inventory) to their company (FI) Goods are transferred from inventory
to cost of goods sold GL accounts are updated
The shipping process ends
Slide 50
Billing (Introduction) The data is gathered from the sales
order and delivery documents SAP supports two types of billing
Order-based billing Delivery-based billing
Outcome is the customer’s invoice Credit status is updated
Slide 51
Billing Methods Delivery-based
1 invoice per delivery Collective-based
1 invoice for several deliveries Split invoicing
Multiple invoices for one delivery
Slide 52
Billing Documents When posted,
Accounts receivable is debited Revenue accounts are credited
The document is passed to financial accounting (FI) awaiting payment
Slide 53
Payment Payment is the final step in the sales
order process, this step is managed by the Financial Accounting department.
Final payment includes: Posting payments against invoices. Reconciling differences between payment
and invoice. Payment will create a posting clearing
the liability in the A/R account and increases your bank account