Sales Order Management SAP Best Practices for Retail
Purpose, Benefits, and Key Process Steps • Purpose • Sales Order Management describes a Business-to-Business (B2B) scenario: you sell to your known customer(s) (with master data record), who in turn sell(s) the merchandise to their customers (wholesale function). In addition to sales order processing functions, this scenario also includes the following process steps: credit limit check and availability check, consignment, backorder processing, customer contract, product catalog, online store, customer billing document, payment handling, and subsequent settlement. • Benefits • The entire document chain - presales phase, order, follow-up actions - forms a document flow or history. The flow of data from one document to another reduces manual processing and facilitates problem solving. • Backorder fulfillment from returns stock allows you to manage how returns are to be allocated for backorders and stock transfers: If the article is unused and can be readily shipped again, then it is quicker and more cost-effective to use it to fill sales backorders or stock transfer orders rather than to move it back to unrestricted-use stock and for subsequent picking and reshipment. • Key Process Steps • Creation of Standard Orders, Rush Orders, Third-Party Orders • Backorder Processing and Rescheduling • Creation of Customer Billing Documents • Payment Handling • Customer Returns Handling • Subsequent Settlement • Customer Consignment Handling • Customer Contract Handling • Product Catalog Handling
Required SAP Applications and Company Roles • Required SAP Applications • SAP SAP enhancement package 3 for SAP ERP 6.0 • Company Roles • Retail Sales Person • Retail Store Manager • Retail Warehouse Clerk • Accounts Payable Assistant • Accounts Receivable Assistant
Process Flow Diagram Sales Order / Backorder Processing and Rescheduling Retail Sales Person Standard Order/ Rush Order/ Third Party Order Analyze Sales Document Rescheduling Credit Limit Check Availability Check Retail Store Manager Monitor the Returns Stock after Distribution Backorder Processing and Rescheduling Run CATT Monitor the Returns Stock Retail Warehouse Clerk Dirstibute Returns Stock to Backorders Reschedule Sales Documents
Sales Order: Alternatives A Sales order is a customer request to the company for the delivery of goods or services at a certain time. The request is received by a sales area, which is then responsible for fulfilling the order. Standard order:Merchandise will be collected or rather delivered and invoiced afterwards. Rush order:Merchandise will be collected or rather delivered imme- diately and invoiced afterwards. Third-party order:Merchandise will be delivered directly by the vendor to thecustomer. The ordering enterprise invoices to the customer Cash sales order:Merchandise will be collected and payed immediately.
Options in the order creation - 1 Cross Selling: due to theenteredarticleadditional relatedarticlesaresuggested DynamicProductProposal: due to theenteredcustomerthearticles (History, PP...)connectedwiththiscustomernumberaresuggested
Options in the order creation - 2 The credit limit check is a check, whether a customer has already covered his credit limitand which consequences are connectedwith it (warning, fault, delivery block). This check can be carried out in every sales document. The delivery of a product to a delivery date is only possible if this product is available for all processing steps to be carried out before the delivery. To guarantee this the availability check is used in the order.
Backorder Processing Check the returns stocks on goods not damaged and not used Listing of relevant requirements for sales documents Manual processing Assignment of the ATP-quantities Select and process backorders for a particular article Backorder processing with a selective list for sales documents
Rescheduling Selection of the open sales document Positions of the selected article and availability check Analysis of the last rescheduling run
Customer Billing Document “Customer billing document” is an umbrella term for invoices, credit memos, debit memos, pro-forma invoices, and cancellation documents. Billing represents the final processing stage for a business transaction in Sales and Distribution
Retail Sales Person Create Billing Documnet Online on the basis of the Outbound Delivery Alternative 1 Generate Preceeding Documents via ECATT Incoming Payment in FI Generate Collective billing Document in the Background Alternative 2 Process Flow Diagram Customer Billing Document
Payment Handling The milestone billing in the billing plan is used for the payment processing of a deposit. Milestone billing means, that the total value, which should be invoiced, is divided in several partial amounts in the billing plan (percentage / absolute), they are to be paid at certain dates. A milestone billing is a schedule with particular billing dates.
Process Flow Diagram Payment Handling Retail Sales Person Down Payment Agreement in the Sales Oder Print the Down Payment Request (Screen) Final Billing with Down Payment Clearing in SD) Print the Final Billing Document (Screen) Down Payment request in SD Accounts Payable Assistant Incomimg Payment for the Down Payment Request in FI Accounts Receivable Assistant Clear the Payment that has already been made in FI Incomimg Payment in FI
Customer Return There are various reasons for returning goods: - The goods are damaged in some way so that they cannot be transferred back into normal stock, but have to be returned to the vendor. - The customer did not like the goods and wants to replace them. The goods can, however, be reused either fully or partially. - The customer did not like the goods and wants their money back or a credit memo. The goods can be reused either fully or partially. When the returned goods are received from the customer, they are initially posted into blocked returns stock. The returned goods are checked and a decision is made as to what to do with them, for example: breakage stock (returned to vendor or destroyed), staff sales, transfer to normal stock/distribution to backorders.
Post the Goods receipt for the Returned Goods Remove the Billing Block Create Credit Memo Create a Return Create a Returns Delivery Full Transfer Postingto Unrestricted-Use Stcok Monitor the Returns Stock Monitor the Returns Stock Issue the Credit Memo Release to Accounting Create a Return with Free of Charge Subsequent Delivery Transfer from Blocked Stock to Return Delivery Storage location Stock Control Create Returns Order Create a Returns Delivery Create a Free of Charge Subsequent Delivery Release the Returns for Subsequent Processing Post the Goods Receipt for the Returns Stock Display Post the Returns Delivery Check the Document Flow Process Flow Diagram Customer Return Retail Sales Person Preparations Execution Transfer from Rerurns Stock to Blocked Stock Stock Control Create a Delivery for the Free of Charge Subsequent Delivery Goods Issue for the Free of Charge Subsequent Delivery
Process of Returns Handling Logistics: Finance: • Input of customer returns • Goods receipt • Creation of customer returns order • Stock transfer posting • into unrestricted stock or • Dispatching to backorders • Transfer posting to returns stock • Following processes • Return delivery to vendor • Invoice verification • Input of customer returns • Credit note or • Subsequent delivery free of charge • Stock • Stock correction (Input to blocked stock) • Following processes • Log. invoice verification
Arrival of the return goods Goods receipt posting Posting in blocked stock
Evaluation of the return goods Control of the goods Decision of further use Transfer back to unrestricted stock Transfer to returns stock
Additional Use I – Unrestricted Stock • Tranfer back to unrestricted stock • Allocate to open orders
Additional Use II – Returns Stock • Transfer back to returns stock • Disposal
Subsequent process Return delivery to vendor
Subsequent Settlement As part of the subsequent settlement procedure, you can offer a reduced price, for example, when a customer buys certain quantities of particular articles together, uses a customer card for payment, or reaches or exceeds the sales volume in a period that has been agreed upon in advance.
188.8.131.52 Bill Rebate Credit Memo Request for the Final Settlement 184.108.40.206 Release Rebate Credit Memo Request for the Final Settlement 8.3.10 Display Payment History Process Flow Diagram Subsequent Settlement Retail Sales Person 8.3 Rebate Processing (in SD) 8 Subsequent Settlement 8.3.1 Display the Status of Rebate Agreement 220.127.116.11 Settlemenr of the Agreement(s) 18.104.22.168 Create Sales Order 8.3.2 Create Rebate Agreement 8.3.3 Update the Sales Volume 8.3.4 Generate ‚New‘ Sales Volume 22.214.171.124.2 Create Transfer Order and Corfirm with GI 126.96.36.199.1 Create Delivery 188.8.131.52 Outbound Delivery 8.3.5 Display Sales Volume Data 184.108.40.206 Create Billing Document 220.127.116.11.3 Document Flow 18.104.22.168 Bill Credit Memo Request for the Partial rebate Settlement 22.214.171.124 Release Credit Memo Request for the Partial Rebate Settlement 8.3.9 Create Final Settlement 8.3.6 Display Drill Downs 8.3.7 Carry out partcial Settlement 8.3.8 Release Agreement for Settlement
Customer Consignment Consignment goods are goods that are stored at a customer location but that are still owned by your company. From a planning point of view this stock is no longer available and is managed independently. The customer is not obliged to pay for these goods until they remove them from consignment stock. Otherwise, the customer can usually return consignment goods that are not required. Consignment processing is advantageous to both parties. Customers store the consignment goods at their own warehouses. The customer can access the goods in the consignment warehouse at any time. They are only billed for the goods when they are removed from the warehouse and only for the actual quantity taken.
Consignment Fill-Up Create Delivery Create and Corfirm Transfer Order Document Flow Consignment Stock Alternative 1: Consignment Issue Billing Goods Issue Reduce the Consignment Stock at Customer Optional Process after Consignment Issue: Consignment Returns Alternative 2: Consignment Pick-Up Billing or Credit Memo for the Consignment Return Created Remove the Billing Block Goods Receipt Process Flow Diagram Customer Consignment Retail Sales Person
Customer Contract Customer contracts are outline customer agreements that display when goods are purchased within a certain time period. Contracts are concluded with the customer so that the purchasing/production and sale of goods can be estimated better, which in turn enables better conditions to be negotiated.
Process Flow Diagram Customer Contract Retail Sales Person Create Contract release Order for Quantity Contract Quantity Contract Value Contract Create Contract release Order for Value Contract
Product Catalog The product catalog is the basis for printed and electronic catalogs. The catalog is maintained in the SAP ERP System and can be transported to external systems and processed as templates for print catalogs or electronic catalogs (CD-ROM or Internet). IDocs and BAPIs are available for exporting the catalog data.
Process Flow Diagram Product Catalog Retail Sales Person Maintain Documents and Texts in the Article Master Create Document Info Records Pricing in the Product Catalog Create a Product Catalog Create Basic Data Add Articles Layout Areas Manually Create the Layout Hierarchy of the Product Catalog Determine the Pricing Procedure Customer Pricing Procedure Create Lower-Level Layout Areas Create a Layout Hierarchy Manually Add Articles Layout Areas Using the Default Article Alternative: Create Layout Hierarchy Automatically Maintain Texts and Documents for Articles and Layout Areas Create a Promotion Product Catalog Maintain Layout Areas Maintain Articles Link between Promotion and Product Catalog Promotional Sales Prices Create layout Hierarchy Create Basic Data