SAP UNIT 4 LOGISTIC Lesson 2 : Sales Order Management

Sales Order Process Overview

mySAP ERP provides superior insight into sales back office processes, including: inquiries, quotations, order generation, contract, and billing cycle management. Businesses benefit from a complete overview of the customer life cycle, including order status , billing , payment and credit management .
The sales order processing scenario describes the complete process, starting with pre sales activities, moving to the creation of the sales order, continuing with the sales order fulfillment, and ending with the invoicing of the sales order and the parallel process of the creation of the posting in financial accounting.

Pre-Sales Activity

Pre-sales activities can be inquiries ou qoutations entered in the system. These can then be used as reference during the creation of a sales order.
Sales Order Creation and Availability Check
The sales order can adopt information from the pre-sales document (a quotation or an inquiry) . sales including agreements or sales contracts (long-term sales agreement) can also be created with reference to a sales order and are supported by the sales process steps.
Delivery and good issue
An outbond delivery is the basic for a process when the goods are physically moved as well as for the posting of the good issue. Picking can be fulfilled through the use of the warehouse management system and transportation can be planned and carried out.
Billing
As the final step in the sales process , an invoice is issued , which must also be reflected in accounting.

Sales Order

During sales order creation, the system can carry our basic functions :
-Monitoring sales transaction
-Checking for availability
-Transfering requirements to material requirements planning (MRP)
-Scheduling delivery
-Calculating pricing and taxes
-Checking credit limits
-Creating printed or electronically transmitted documents


Delivery

Shipping is an important part of the logistics chain.
in shipping processing , all delivery procedure decisions can be made at the start of the process by :
• Talking into account general business agreements with your customer
• Recording special material requests
• Defining shipping conditions in the sales order

Shipping Functions

The shipping module supports the following functions

-Deadline monitoring for reference documents due for shipment
-Creating and processing outbound deliveries
-Packing deliveries
-Information support for transportation planning
-Supporting foreign trade requirements
-Printing and transmiting shipping documents
-Processing goods issue
-Deliveries currently in process
-Activities that are still to be carried out
-Identifying possible bottlenecks
the most commonly used document used to support processed is the outbound delivery document . in its role as central object of the goods issue process, outbound delivery supports all shipping activities , including picking , picking , transportation and good issue .
Range of functions
An outbound delivery can be created as follows :
-With reference to a sales order
-With reference to a stock transport order
-With reference to a subcontract order
-With reference to a object
-Without any reference
A variety of warehouse and sales overview reports allow you to monitor created outbound deliveries and outbound sales activities.
Picking the Delivery
The picking process involves taking goods from a stronge location and staging the goods in a picking area where the goods will be prepared for shipping.
Picking functions

System setting with allow picking to be carried out :
a. Automatically (during outbound delivery creations)
b. Routinely (a certain times)
c. Manually (via an employee request)
A picking status is recorded in each delivery item for the purpose of scheduling and monitoring.

The warehouse Management System is fully integrated in the Logistics Execution System (LES).for example you can create a warehouse management transfer order directly from the outbound delivery.

Good Issue Posting Functions

The outbound delivery forms the basic of goods issue posting . the data required for goods issue posting is copies from the outbound delivery into the goods issue documents, which cannot be changed manually. Any changes must be made in the outbound delivery itself.

Warehouse stock of the material is reduced by the delivery quantity
- Value changes are posted to the balance sheet account in inventory accounting
- Requirements are reduced by the delivery quantity
- The serial number status is updated
- Goods issue posting is automatically recorded in the document flow
- Stock determination is executed for the vendor’s consignment stock
- A worklist for the proof of delivery is generated
You can post goods issue in the following ways :
- Automatically (during outbound delivery creation)
- Routinely (at certain times)
- Manually (via an employee request)

Billing

Billing represents the final processing stage for a business transaction in sales order processing . information on billing is available at every stage of order processing and delivery processing.

Billing functions include :
- Creation of invoice based on deliveries or services
- Issue of credit and debit memos and pro forma invoices
- Canceling billing transactions
- Comprehensive pricing functions
- Issue rebates
- Transfer billing data to financial accounting

During a billing processing it is posible for you to create , change and delete billing document

It is posible to create billing documents
- With reference to a sales order document
- With reference to a delivery document
- With reference to external transactions
- By having the system automatically process a billin due list as a backgraoud task
- By manually processing from a worklist
- By creating a billing document explicitly
- By combining several sales order documents into a collective billing document
- By billing one or more sales order documents with several billing documents
- By creating an individual billing document for every sales document

Billing and Financial Accounting

The system automatically posts the amounts to the appropriate accounts by means of account determination

Costs and revenue can be posted to the following accounts :
- Customer accounts receivable
- General ledger (for example, a cash clearing account)
- Revenue
- Sales deductions
- Accruals (for rebate agreements)
- Accrual account
- Accrual clearing account

Document Flow

The sales documents you create are individual decuments , but they can also from part of a chain of interrelated documents . for example you may record a customers telephone inquiry in the system . the customer next request a quotation, which you the create by referring to the inquiry .

After delivery of the goods issue the customer claims credit for some damaged goods and you create a free-of-change delivery with reference to the sales order , the entire chain of documents the inquiry, the quotation , the sales order , the delivery , the invoice and the subsequent delivery free of chrge- creates a document flow or history .