Order Fulfillment I part 1

T-SCM60 part 1 of 2:
Process in Sales and Distribution

Monica Radytia Chrismawati

• 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

Overview
Sales Order Management
 Transfer
Sales Outbound Billing
Presales Order Payment
Order Delivery (Invoice)
(Picking)

Inquiries Quotation
VA01 – Create Sales Order  Save  Doc. Number generated.

VL01N – Create Outbound Delivery  Save  Doc. Number generated.

Stock di warehouse belum berkurang.
Customer
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

Sales Process in SAP

• 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

Organizational Units in SD
• 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 Organization
 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.
• 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.

Plant in SD
• 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

Delivering Plant
• 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

Shipping
• Shipping Point : Outbound Delivery = 1 : N,
prerequisite:
• Shipping Point
• Due Date same
• Ship-to address

Outbound Delivery
Billing
 Material

- Prices Cust/ - Cross reference

- Discount Condition material number
Material
- Freight/Incoter
ms SD Master Info
- Taxes Data

- General Data
Customer Output
- Company Code Data
- Sales Area Data

Master Data in SD
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

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 Master Data

cont’d
• 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.

Customer - Material Info

Master Data
• Prices
• Surcharges / Discount
• Freights (incoterms: CRF, CIF, FOB, etc)
• Taxes

Condition Automatic
Master Data Pricing

Condition Master Data

• Standard Order
• Cash Sales
• Rush Order
• Free-of-charge delivery
• Returns
• Consignment Fill-Up
• Credit/Debit Request

Sales Document Types

 Standard Order Cash Sales Rush Order
Delivery & invoice on a Delivery + invoice Delivery immediately,
fixed date immediately invoice later
Normal order Billing related Delivery related
Relevant for availability Not relevant for Relevant for availability
check. availability check as you check.
will be picking the goods
directly.
Relevant for credit Not relevant for credit Relevant for credit
management management management

Cust. Account group: SP Cust. Account group: ?

one time
Example: Standard Order Example: buy in Example: Delivery is
supermarket made on the same day
as when the order was
created

SO vs Cash Sales vs Rush Order

• 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).

Availability Check
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

Backward Scheduling
Fordward Scheduling
If (MAD + Pick/pack time + Loading Time + Transportation < Req. Dev. Date) {
Backward Scheduling
}else{
Forward Scheduling
}

Forward vs Backward
Scheduling
• Stocks are available for picking.
• Delivery documents (outbound delivery &
transfer order) already made.
• Req. Delivery Date != Replenishment Lead Time.

Delivery can be made if:

Make-to-Order Materials are not stored in the warehouse
but produced especially for a particular
order.
• 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

Item Category
• Damaged goods
• Incorrect invoices
• It is made after:
• Created a sales order
• Delivered the goods and billed the customers for the goods

Return & Credit Memo

Processing
THANK YOU