Day 1 Various Sales Cycle

8/8/2019 Day 1 Various Sales Cycle

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Sales Shipping BillingPre-Sales

Quotation

Inquiry

Product Item proposal

Contracts

S & D Sales Cycle Pre Sales Overview

By Naresh Punjabi


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By Naresh Punjabi

The quotation processing is triggered from the customer inquiry.

While processing a quotation you can check the following:

Pricing

Verify and/or manually adjust price conditions.

E.g. change the PR00 condition.

Availability check

check if the material is available from the system.

Schedule lines

See if the schedule lines meet the customer expected delivery date or if the

system proposes the deliveries in the way you want



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By Naresh Punjabi

OrderOrder

QuotationQuotation

Item 10 M1 10 PC

Item 20 M2 20 PC

Rejection reason:

03 too expensive

Item 30 M3 30 PC

Sold-to party: C1

Sold-to party: C1

Item 10 M1 10 PC

Item 20 M3 30 PC

The rejection can come fromyour organization

(for example, you can reject a

customer request for a credit

memo because it is

unreasonable)

or from the customer (forexample, the customer rejects a

quotation because the price is

too high).

A reason for rejection can be

assigned on item level. After youenter a reason for rejection,

quotations will have no further

references by

other documents.



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By Naresh Punjabi

Sales Order Processing

Definition of Product Business:

Sales of goods directly or indirectly to the customer.

Goods are sold from stock or directly from vendor.

Simple product structure, no external configurationrequired.

Single/multiple deliveries, not related to a project.

Delivery related billing.

Service Management is not required.


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Invoice

Invoice

SDSD MMMM

Quotation

Sales Order

Output

Output

Delivery

Requisition

Purchase Order

Output

Output

Goods Receipt and

Invoice Verification

Customer-related Stock

Delivery

By Naresh Punjabi

Sales Order Processing Logistics Integration


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Item

10

20

Material

M1

M3

Qty

40

60

DeadLn

06/20

06/20

Price

100.-

120.-

Item

10

20

30

Material

M1

M2

M3

Quantity

40

50

100

X

X60

Sales Order 5376Sold-to party 40004000Business data

Create w/ reference

Quotat.

Req. delivery

date D 06/

20

200000171

Copy Selection list

Item10

20

30

MaterialM1

M2

M3

Qty40

50

100

DeadLn04/01

04/01

04/01

Price100.-

150.-

120.-

Quotation 200000171Sold-to-party 40004000Business Data

SD document 5376Sold-to party 40004000

Business data

Copying control

By Naresh Punjabi

Sales Order Processing Sales Order Creation

Quotation Reference


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Item

10

20

Material

M1

M3

Qty

40

60

DeadLn

06/20

06/20

Price

100.-

120.-

Item

10

20

30

Material

M1

M2

M3

Quantity

40

50

100

X

X60

Sales Order 5400Sold-to party 40004000Business data

Create with reference

Order

Req. deliverydate

D 06/20

5376

Copy Selection list

Item

10

20

30

Material

M1

M2

M3

Qty

40

50

100

DeadLn

04/01

04/01

04/01

Price

100.-

150.-

120.-

Order 5376Sold-to-party 40004000Business Data

SD document 5400

Sold-to party 40004000Business data

Copying control

By Naresh Punjabi


Sales Order Reference


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Sales Document Type

Sales Organisation

Distribution Channel

Division

Entry

Item

-

-

Material

-

-

Qty

-

-

DeadLn

-

-

Price

-

-

SD document 5435

Sold-to party 40004000Business data

Sales Area

Sales Document Type

Manual Creation

Sales Office

Sales Group

By Naresh Punjabi



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Schedule line 1

Item 10

Schedule line 1

Header

Business data

Conditions

Partners

Texts

Purchase order data

etc.

Business data

Conditions

Texts

Partnersetc.

Item 20

Schedule line 2Sales

Shipping

Procurement

By Naresh Punjabi

Sales Order Processing - Sales Document Structure

Product Business


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Item

10

20

30

Material

M1

M2

M3

Qty

40

50

100

Item Category

YQM1

YQM2

YQM3

Order 5376Sold-to-party 40004000Business Data

SelectedbyItemCategory

!

By Naresh Punjabi


Item Category

The item category key is automatically set by the system for every line item.

According to the business needs ,you can overwrite the present item

category key manually.

For E.g..Item Category can be changed when material is procured

Changing the Item Category would result in changing the procurementfor the item

E.g TAN , TANN , TAS, TAQ, TAP


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By Naresh Punjabi


Item Category

Item Category :-

An item Category in the Sales order item is determined based

On the

Sales Document Type + Item cat.Group Material Master +Higher Level Item + Usage.

Standard Item Category is TAN For Deliverable Items.

TANN is for Free Supply items.


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Item

10

20

Material

M1

M3

Qty

40

60

DeadLn

06/20

06/20

Price

1.000.-

12.000.-


Business dataCredit Check Status [ ]

Total Order Value 13.000,-

Credit

Check

CreditMaster

Item

10

20

Material

M1

M3

Qty

40

60

DeadLn

06/20

06/20

Price

1.000.-

12.000.-


Business dataCredit Check Status [ Blocked ]


F I

DeliveryCreation NO !

Sold-to-party40004000Credit Limit: 12.500

CustomerMaster

S D

X

By Naresh Punjabi


Credit Check


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By Naresh Punjabi


Processing the Incompletion Log

Goto System HelpEditSales document

Create Standard Order: Incompletion Log

??Complete data

Sold-to party

Standard Order

61 Joseph H. Gruis

Item Missing data

Purchase order no.

Save incomplete document

The document is still incomplete Save

Would you like to save the

incoming document or process

the missing data?

Edit data

Cancel

When you save the order, this dialog box appears

if required data is missing.

Selecting Edit data displays the Incompletion log.

Data on the header of this sales order is missing,the purchase order number.


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By Naresh Punjabi


Cash Sales

The Cash Sales Order is generally used in the the Retail

Segment.

The Delivery gets created automatically in the backgroundOnce the Sales Order is Saved.

A Cash Sale Invoice is printed and issued to the Sold to

Party

The Invoice Output is generated from the Sales Order.


15/44

By Naresh Punjabi


Cash Sales

Sales Document Type = BV

Item Category = BVN

Availability Check = No

Order Related Billing.


16/44

By Naresh Punjabi


Rush Order

The customer Places Order & collects the material orThe same is shipped.

The delivery is created automatically when the order is

Saved

The Invoice is printed once the Customer has received

the Material.


17/44

By Naresh Punjabi


Rush Order

Sales Document Type = SO

Item Category = TAN

Availability Check = No

Delivery Related Billing.


18/44

By Naresh Punjabi


Consignment Sale.

Consignment Sale Process allows Stocks or MaterialTo sit at the customers site OR allows stocks that

Is reserved for the customer to sit at its own site.

The Stock is monitored at the Individual Customer &Material Level.

This stocks are referred as Special Stocks.

Represented with Indicator W.


19/44

By Naresh Punjabi


Consignment Sale Process Steps

1.Consignment FILL UP.

The Seller delivers stocks to a customer on Consignment .

This process is called as Consignment FILL UP.

In this Process of FILL UP the Delivery is created .

The Billing Document is not created.


20/44

By Naresh Punjabi



2.Consignment IssueAfter the Consignment FILL UP the Customer /

Consignee may consume the Material or Sell it.

Then the customer only pays for the material sold

Or the material consumed.

The Post goods issue is done , Stocks are depleted.

The Invoice is raised to that extent.


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By Naresh Punjabi



3. Consignment Return

The consignment Return is a Sale Process flow that

represents faulty materials or the product consumed

Or sold by the Consignee.


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By Naresh Punjabi



4. Consignment Pick-Up.

The Pick Up process imitates picking up of the faulty

materials as well as picking up of excess material not

yet consumed by consignment issue.


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Customer

Material

Price group

Material pricing group

Customer/Material pricing group Customer/Material

Others

Price list

Material price

Customer-specific

Material Costs

Others

Conditions

Prices Discounts/surcharges

Validity Period

By Naresh Punjabi


Pricing


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PricesList Price 1

List Price 2

DiscountsDiscounts by Discount Group

in Master Data

Customer/Material Pricing Group

Customer Group/Material Pricing Group

Material Pricing Group

By Naresh Punjabi


Pricing Elements


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Freight Charges

Customs

Sales Taxes

If not FOB, System adds surcharges

for freight.

Defined by customs codein material master

Manual maintained percentage

Domestic or foreign business transaction

Tax classification of customers ship-to-party

Tax classification in material master

By Naresh Punjabi


Pricing Elements


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By Naresh Punjabi


Pricing Elements

Payment Terms

Incoterms

Assigned to a customer

in customer master/

sales view

Assigned to a customer

in customer master/sales view


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Header

Item 10 Reason for rejection

Item 20Item 30 Reason for rejection

Order

Header Delivery block/Billing block

Item 10 Delivery block/

Billing block

Item 20

Schedule line 1

Schedule line 2 Delivery block

Order

By Naresh Punjabi

Changing Sales Order


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Item

10

20

Material

M1

M3

Qty

40

60

DeadLn

06/20

06/20

Price

1.000.-

12.000.-

SD document 5435Sold-to party 40004000Business data


SalesOrderMessages

Entry

Sales Order 5435

Order Confirmation

Sales Order 5435

Pro FormaInvoice

By Naresh Punjabi

Order Confirmation


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Document flow ofan order

Quotation

. Order

. . Delivery

. . . Invoice

. . Returns

. . . Returns delivery

. . . . Credit for returns

Returns

Order Delivery Invoice

Delivery Credit

Note forReturns

Quotation

.

.

.

By Naresh Punjabi

Document Flow Viewed from Sales Order


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By Naresh Punjabi

Third Party Sales

Basic Concepts of Third Party Sales.

Sale Process wherein Trading of Goods Take Place between the

Buyer and seller.

The Buyer Sells it to the end customer with a Margin.

There is no Value addition done in terms of the Product Purchased

& Sold. Product is sold AS IS.

There is no Physical Movement of Goods in the warehouse of the

Buyer.Statistical Goods receipt could be executed.


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Sales Quotation

Processing

Contracts

SalesO

rderProcessing

Purchase

Requisition

PurchaseOrder

Goods

Receipt

Delivery

Billing

Third Party Sales- Structure

MMMM

SDSD

SDSD

By Naresh Punjabi

Third Party Sales


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Item

Materials

Total quantities

Delivery dates

Price and conditions

Delivery schedule

Plant

Purchasing groupAccount

assignment: E

Item category: S

GR non-valuated

indicator

Header

Vendors address

Terms of payment

Delivery terms

Procurement type PurchaseOrder

By Naresh Punjabi

Third Party Sales Purchase Order


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By Naresh Punjabi

Third Party Sales - Purchase Order

There are 3 methods to create a Purchase Order:

With reference to Purchasing Documents,

like RFQ, Contracts

Automatic generation Assign and process Purchase Requisition

to PurchaseOrder


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By Naresh Punjabi

Purchase Order : Reference

Purchase

Requisition

Materials

Total quantitiesDelivery dates

Price and

conditions

PurchaseOrder

Vendor B

Manila

with reference

to...

Purchase Order

RFQ

ContractScheduling

AgreementPurchase

Requisition

Materials

Total quantitiesDelivery dates

Price and

conditions


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PO

Vendor B

Item 10

PO

VendorA

Item 10

Item 20

Exclude faulty itemsPurch. requisition

Item 10 Material ...Source: vendorA

Item 20 Material ...

Source: vendorA

Item 30 Material ...

Source: vendor B

Item 40 Material ...W/o source

Mat. master rec.

Material 1

Plant 1000

Autom. PO x

Info record

Vendor A

Material 1

Pur. org. 1000

Price 10.00

Contract

Vendor A

Material 1

Pur. org. 1000

Price 10.00

Prerequisites Basis Automatic generation of POs

Vend. master rec.

Vendor A

Pur.org 1000

A

utom. PO

x

By Naresh Punjabi

Purchase Order : Automatic Generation


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Purchase

requisition

W/o source

Changerequisition

Processassignment

Assignment

overview

Assign source

List requisitions (for purchasing group)

1

Assign source

Outline agreement Info record (vendor)

2

List of assigned requisitions3

Purchase

requisition

With source

Pur. order

By Naresh Punjabi

Purchase Order :Assign and Process P Ref to PO


39/44

By Naresh Punjabi

Free of Cost Delivery Process

There are Three Types of Free of Charge Deliveries

Free of Charge Items along with Sales Order.

Free of Charge Sample Orders

Subsequent Delivery Free of Charge(Subsequent

to the Return Process.)


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By Naresh Punjabi

Features of Free Cost of Sale / Delivery

The sales order has item category as TANN.

The order is deliverable but not Billable.


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By Naresh Punjabi

Debit or Credit - ote or emo

This process is used for transactions which purposesare different from normal purposes of the business to

credit/debit a customer.

Credit/debit memo request may be created withreference to an invoice or without any reference.

The creation of a credit/debit memo request is part of

the Sales Order processing in SAP R/3 .

The creation of a credit/debit memo is part of the

billing in SAP R/3.


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By Naresh Punjabi


Reasons for Debit / Credit Note.

1. Incorrect Price Charged.

2. Wrong Tax Charged.

3. Target Achievement Credit Notes.

4. Price Revision differences.


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By Naresh Punjabi


A Debit /Credit Memo Request is a sales document for the purpose of

adjusting the Selling expenses or Cost. You entera Value Item with a value

.

Billing Related Adjustment

A Credit Note Request is a sales document for the purpose ofadjusting the

Billing to the customer. You may create the Credit Note Request with

reference to the original invoice

(A) The accounting impact of the Credit Note would be:

Credit Customeraccount

Debit Sales Revenue

(B) It is used in the case ofadjustment to the original invoice value.No

Goods Movement takes place.


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By Naresh Punjabi


Debit ote Credit ote

S e i re re e Dere eri eDi ere e

C tomer o t re e Dere e

e

Impact of Debit / Credit Notes on Accounting.