Sales Cycle & Documents4.6fi_17.1

Chapter 17Sales Cycle & Documents

• Sales is a component of the Sales & Distribution module that supports the sale, delivery, and billing of materials and/or services to the customers of the organization.

• In keeping with the system’s Document Principle, the steps in the Sales Cycle are represented by various documents, which are produced in the Sales & Distribution and Financial Accounting modules.

• Chapter Objectives– Provide an overview of how the system supports an

integrated Sales Cycle and a description of the purpose and functionality of each document created in the system in support of the Sales Cycle.

Sales Cycle & Documents4.6fi_17.2

Sales OrderSales Order(SD)(SD)

Inquiry / QuotationCredit Check

Delivery NoteDelivery Note(SD)(SD)

Authorization to Ship

Credit Check

Goods IssueGoods Issue(MM)(MM)Credit Check

Inventory COGS

X X

FI

X

A/R Sales Revenue

Billing DocumentBilling Document(SD)(SD)

Invoice Sent

X

FI

Receive PaymentReceive Payment(FI)(FI)

A/R Cash

X X

Sales Cycle

Sales Cycle & Documents4.6fi_17.3

Sales Documents

• Inquiry

• Quotation

• Sales Order

• Credit & Debit Memo Requests

Sales Cycle & Documents4.6fi_17.4

?

Customer Seller

Inquiry

Inquiry

Sales Cycle & Documents4.6fi_17.5

Inquiry Quotation

Customer

Quotation

Sales Cycle & Documents4.6fi_17.6

Price

QuantityDelivery

Dates

Sales Order

Sales Order

Sales Cycle & Documents4.6fi_17.7

• Initiates Shipping Activities • Forms the basis for Goods Issue & Billing

Delivery Note

Delivery Note

Sales Cycle & Documents4.6fi_17.8

Billing Due List

Delivery

OrderQuotation

UpdatedUpdated

Stock

Inventory COGS

X X

Goods Issue

GoodsIssue

Sales Order

Sales Cycle & Documents4.6fi_17.9

Invoice

Customer

Delivery Note

BillingDocument X

A/R Sales Revenue

X

Accounting Document

Billing Document

Sales Cycle & Documents4.6fi_17.10

Accts. ReceivableAccts. Receivable CashCash

Receipt of payment

Incoming Payment

Sales Cycle & Documents4.6fi_17.11

Create Customer

Master Records

Display CustomerAccount Balances

IncomingPayment

Processing

CreditManagement

Display / ChangeCustomer Line Items

Dunning

FIAccounts Receivable (A/R)

Accounts Receivable in the Sales Cycle

Sales Cycle & Documents4.6fi_17.12

Sales OrderSales Order(SD)(SD)

Inquiry / QuotationCredit Check

Delivery NoteDelivery Note(SD)(SD)

Authorization to Ship

Credit Check

Goods IssueGoods Issue(MM)(MM)Credit Check

Inventory COGS

X X

FI

X

A/R Sales Revenue

Billing DocumentBilling Document(SD)(SD)

Invoice Sent

X

FI

Receive PaymentReceive Payment(FI)(FI)

A/R Cash

X X

Sales Cycle

Sales Cycle & Documents4.6fi_17.13

Sales Cycle & Documents Chapter Summary

• Key Terms– Sales Cycle– Sales Documents– Inquiry– Quotation– Sales Order

Sales Cycle & Documents4.6fi_17.14

Sales Cycle & Documents Chapter Summary

• Key Terms– Shipping Documents– Delivery Note– Goods Issue– Movement Type– Billing Document