Organisational Units
Global bike company (GBI):
- Europe (Germany): DE00
- North-America (US): US00
Plants: physical locations where activities and operations take place
- Miami: MI00
- San Diego: SD00
Storage locations: warehouses belonging to a plant
- Traded goods: TG00
- Raw materials: RM00
- Finished goods: FG00
Je kan dus zeggen dat de grondstoffen in plant SD00 in storage location
RM00 liggen.
Bij FG00 specificeren we het specifieke warehouse met een warehouse
number.
Sales process
2.1 Introduction
Selection process
Supplier looks for a customer to sell his products to:
- Individual person
- Company/organisation
Usually with CRM (customer relationship management)
Advantage of SAP: combine CRM and sales transaction in the same tool
Possible customers = leads
Sales transaction (Order to Cash)
When a customer is found and agrees with the price quotation/proposal, he
will place an order (purchase order on the customers side)
The supplier processes the order (create sales order)
2.2 Transaction process: Order to Cash (O2C)
Types of stock:
Free available stock: any employee of the supplier may take these products as
they are available.
Quality inspection: products are temporarily unavailable until the products
have been inspected and confirmed to be up to standards. If acceptable
quality status will change to Free available stock, if not acceptable quality
status will change to blocked.
Blocked: products that are blocked and can’t be used by anyone in the
company
Difference between MTO and MTS O2C processes
, Make to stock (MTS): short O2C process
- Sufficient free available stock to fulfil the order
1. Order entry: Purchase order on the customers side is turned into a sales
order on the supplier side.
2. Verification: check if the requested item is available and ready to ship
3. Confirmation: confirm order with customer
4. Invoice: Either sent with the products or sent separately via mail or
another method
5. Pick-pack: supplier takes the requested quantity and packs the product for
the customer
6. Delivery: transportation from supplier to customer
Location of invoice in the process depends on the payment-method
used by the customer. In case of pre-payment the invoice and payment
happens before the pick-pack and delivery. In other cases it’s possible
to delay payment until the products have been delivered to the
customer.
Make to order (MTO): longer O2C process
- Products still need to be produced after the order comes in
2.3 Case 1: Order to Cash (O2C) – MTS
Sales representative receives order from customer and enters the sales order in
SAP. Selection process is skipped in this case
SAP tile: Manage Sales Orders: Create Sales Order VA01
Enter order type: OR (standard order)
Enter sales organisation: UE00 (US East)
Check the customer: is it a company or an end-customer
- Company: wholesale (WH)
- End-customer: internet (IN)
Enter product division: BI (bicycles)
Enter Sold to and Ship to:
, - Search term: ### (LEARN-number)
- City: find on customer order
Enter customer reference and customer reference date: found on customer
order
Enter requested delivery date: today
Enter material + order quantity: find on customer order
Enter UN (sales unit): EA (each)
Press Enter -> Plant is automatically assigned by SAP (note down plant)
Save Sales order -> Note sales order number (3 digits)
Sales order has been entered in SAP. SAP can automatically execute a credit-
check and SPL-check on the customer. (SPL = Sanctioned party list).
Credit check: check if the customer paid previous invoices or is allowed to pay
after receiving the goods instead of prepayment
SPL-check: check if customers are whitelisted (trade allowed) or blacklisted
(trade not allowed). If blacklisted, the process ends as a sales is not possible. If
whitelisted, then the process can continue.
After the necessary checks haven been carried out, the verification step in the
O2C-process is completed.
Master data: all company data that has an impact on transaction
Master data is best fully defined and available before the start of the
transaction process.
Transaction data: master data that has been used in a specific transaction
This allows for master data to be updated/changed without affecting
previous transactions where this master data was used.
Financial integration: after saving the sales order in SAP, the financial integration
happens automatically
Journal post is entered into accounting -> accounting department is
aware of customer order
SAP tile: Manage Sales Orders
We want to keep track of the sales order and the inventory of the ordered
material.
Enter sales order number to find the previously created sales order
Click display document flow
Current order status: open – no extra documents
Keep this window open
SAP tile: Stock Multiple Materials
Enter material that was ordered
Enter plant that was automatically assigned and noted down before
Note down the stock of the material in unrestricted use in the assigned plant
in storage location FG00
Keep this window open
, The supplier now has to inform the customer that the order is accepted and will
be delivered (if the order can not be delivered as desired, it will be
communicated at this time to the customer)
Confirmation ideally happens after order verification in the ERP-system (in this
case SAP) within 24 hours after receiving the order from the customer.
At this point the customer committed to the supplier (by sending an order) and
the supplier committed to the customer (by sending an order confirmation).
If the customer is not pleased with the information on the confirmation he should
reach out to the supplier within 24 hours to communicate desired changes.
24 hours is not legally required here nor for the confirmation of the
order by the supplier, but it is considered good business practice. (if the
customer never check the order confirmation and the wrong goods are
delivered, it’s also his own fault)
SAP tile: Create Outbound Deliveries from Sales Orders
Sales order = wish of the customer
Delivery = execution by the supplier
Outbound Delivery = created by warehouse employee or distribution planner
SAP will organise the transport before the picking even starts by grouping sales
orders together that will be shipped from the same shipping point to the same
customer
Sales document: enter sales order number
Click go
Tick the box: create outbound deliveries
SAP tile: Stock Multiple Materials
Check stock level of the ordered materials
Note the stock in unrestricted use
Should not have changed since the last time
SAP tile: Manage Sales Orders
Check document flow
Note down all lines:
- Standard Order: completed
- Outbound Delivery: open
We can see the Outbound Delivery in the document flow
Warehouse operator picks the order with the outbound delivery order and packs
the goods in adequate packaging for transportation.
SAP tile: Manage Outbound Deliveries
Warehouse employee sees all the open outbound deliveries that need to be
picked and packed.
We look for our outbound delivery
Global bike company (GBI):
- Europe (Germany): DE00
- North-America (US): US00
Plants: physical locations where activities and operations take place
- Miami: MI00
- San Diego: SD00
Storage locations: warehouses belonging to a plant
- Traded goods: TG00
- Raw materials: RM00
- Finished goods: FG00
Je kan dus zeggen dat de grondstoffen in plant SD00 in storage location
RM00 liggen.
Bij FG00 specificeren we het specifieke warehouse met een warehouse
number.
Sales process
2.1 Introduction
Selection process
Supplier looks for a customer to sell his products to:
- Individual person
- Company/organisation
Usually with CRM (customer relationship management)
Advantage of SAP: combine CRM and sales transaction in the same tool
Possible customers = leads
Sales transaction (Order to Cash)
When a customer is found and agrees with the price quotation/proposal, he
will place an order (purchase order on the customers side)
The supplier processes the order (create sales order)
2.2 Transaction process: Order to Cash (O2C)
Types of stock:
Free available stock: any employee of the supplier may take these products as
they are available.
Quality inspection: products are temporarily unavailable until the products
have been inspected and confirmed to be up to standards. If acceptable
quality status will change to Free available stock, if not acceptable quality
status will change to blocked.
Blocked: products that are blocked and can’t be used by anyone in the
company
Difference between MTO and MTS O2C processes
, Make to stock (MTS): short O2C process
- Sufficient free available stock to fulfil the order
1. Order entry: Purchase order on the customers side is turned into a sales
order on the supplier side.
2. Verification: check if the requested item is available and ready to ship
3. Confirmation: confirm order with customer
4. Invoice: Either sent with the products or sent separately via mail or
another method
5. Pick-pack: supplier takes the requested quantity and packs the product for
the customer
6. Delivery: transportation from supplier to customer
Location of invoice in the process depends on the payment-method
used by the customer. In case of pre-payment the invoice and payment
happens before the pick-pack and delivery. In other cases it’s possible
to delay payment until the products have been delivered to the
customer.
Make to order (MTO): longer O2C process
- Products still need to be produced after the order comes in
2.3 Case 1: Order to Cash (O2C) – MTS
Sales representative receives order from customer and enters the sales order in
SAP. Selection process is skipped in this case
SAP tile: Manage Sales Orders: Create Sales Order VA01
Enter order type: OR (standard order)
Enter sales organisation: UE00 (US East)
Check the customer: is it a company or an end-customer
- Company: wholesale (WH)
- End-customer: internet (IN)
Enter product division: BI (bicycles)
Enter Sold to and Ship to:
, - Search term: ### (LEARN-number)
- City: find on customer order
Enter customer reference and customer reference date: found on customer
order
Enter requested delivery date: today
Enter material + order quantity: find on customer order
Enter UN (sales unit): EA (each)
Press Enter -> Plant is automatically assigned by SAP (note down plant)
Save Sales order -> Note sales order number (3 digits)
Sales order has been entered in SAP. SAP can automatically execute a credit-
check and SPL-check on the customer. (SPL = Sanctioned party list).
Credit check: check if the customer paid previous invoices or is allowed to pay
after receiving the goods instead of prepayment
SPL-check: check if customers are whitelisted (trade allowed) or blacklisted
(trade not allowed). If blacklisted, the process ends as a sales is not possible. If
whitelisted, then the process can continue.
After the necessary checks haven been carried out, the verification step in the
O2C-process is completed.
Master data: all company data that has an impact on transaction
Master data is best fully defined and available before the start of the
transaction process.
Transaction data: master data that has been used in a specific transaction
This allows for master data to be updated/changed without affecting
previous transactions where this master data was used.
Financial integration: after saving the sales order in SAP, the financial integration
happens automatically
Journal post is entered into accounting -> accounting department is
aware of customer order
SAP tile: Manage Sales Orders
We want to keep track of the sales order and the inventory of the ordered
material.
Enter sales order number to find the previously created sales order
Click display document flow
Current order status: open – no extra documents
Keep this window open
SAP tile: Stock Multiple Materials
Enter material that was ordered
Enter plant that was automatically assigned and noted down before
Note down the stock of the material in unrestricted use in the assigned plant
in storage location FG00
Keep this window open
, The supplier now has to inform the customer that the order is accepted and will
be delivered (if the order can not be delivered as desired, it will be
communicated at this time to the customer)
Confirmation ideally happens after order verification in the ERP-system (in this
case SAP) within 24 hours after receiving the order from the customer.
At this point the customer committed to the supplier (by sending an order) and
the supplier committed to the customer (by sending an order confirmation).
If the customer is not pleased with the information on the confirmation he should
reach out to the supplier within 24 hours to communicate desired changes.
24 hours is not legally required here nor for the confirmation of the
order by the supplier, but it is considered good business practice. (if the
customer never check the order confirmation and the wrong goods are
delivered, it’s also his own fault)
SAP tile: Create Outbound Deliveries from Sales Orders
Sales order = wish of the customer
Delivery = execution by the supplier
Outbound Delivery = created by warehouse employee or distribution planner
SAP will organise the transport before the picking even starts by grouping sales
orders together that will be shipped from the same shipping point to the same
customer
Sales document: enter sales order number
Click go
Tick the box: create outbound deliveries
SAP tile: Stock Multiple Materials
Check stock level of the ordered materials
Note the stock in unrestricted use
Should not have changed since the last time
SAP tile: Manage Sales Orders
Check document flow
Note down all lines:
- Standard Order: completed
- Outbound Delivery: open
We can see the Outbound Delivery in the document flow
Warehouse operator picks the order with the outbound delivery order and packs
the goods in adequate packaging for transportation.
SAP tile: Manage Outbound Deliveries
Warehouse employee sees all the open outbound deliveries that need to be
picked and packed.
We look for our outbound delivery
