Sales & Distribution

- Sales Process Overview -

Pre sales activates

Pre sales activities

Sales activities like direct mailing, internet
campaign, trade fair or telephone can
trigger sales processes.
Inquiry and Quotation helps in determining
important sales data and can be saved.
If the customer places a order, these data
can be accessed.

Sales Inquiry & Quotation

Support pre-sales processes

Are time sensitive
Automatic availability check
Automatic pricing
No impact to FI
Can be used as reference documents

Pre sales activities

Inquiry - IN
Quotation - QT
Contract - QC
Scheduled agreement - DS

Inquiry
Initial activity in the sales process
Carries the information related to
customer and material.
The order type for inquiry is IN.

Quotation
An offer from the enterprise to the
customer.
Its a valid document, will carry validity
dates.
Pricing conditions will be mentioned in the
document.
The document type for quotation is QT

Outline Agreements
Contracts
Schedule Agreements

Contracts

Contracts
Defined quantities and validity period for a
customer
The contract is fulfilled by orders placed
against the contract - release orders
Contracts are automatically updated
through release order processing
Pricing can be assigned to a contract

Contract
An agreement between enterprise and
customer. It is also a legal document. It
will carry valid dates.
Types of contracts

Types of contract
QC-Quantity contract
WK1-Value contract
MS-Master contract
SC-Service contract

Contracts
Contract
Target Qty: 900
Order Qty: 700

Release Order
Order Qty: 200

..
.
Contract
Target Qty: 900
Order Qty: 750

Release Order
Order Qty: 150

Scheduling agreement

Scheduling Agreements
Defines specific product quantities and delivery
dates for a customer
Schedule lines and processed through standard
delivery processing
Availability check is performed during creation
and quantities are passed to MRP
System automatically updates delivered
quantities

Scheduling Agreements
Scheduling
Agreement
Date
05/15
06/15
07/15
08/15

Qty
100
100
200
300

Delivery
5/10 100
Delivery
6/10 100
Delivery
7/10 200
Delivery
8/10 300

Structure of contract
Header
Line Item#1
Scheduline agreement #1
Scheduline agreement #2
Line Item #2
Scheduline agreement #1
Scheduline agreement#20

Item Categories for Contracts

Standard Item-KMN
Free of charge-KMNN

Schedule agreement

Structure of Scheduling agreement

Header
Line Item#1
Scheduline agreement #1
Scheduline agreement #2
Line Item #2
Scheduline agreement #1
Scheduline agreement#20

Order management

Standard order

A sales order is a record of your customer's request for goods or

services.

The sales order contains all information to process the customer's

request throughout the whole process cycle.

The sales component thus automatically suggests data from master

records and control tables that you previously put aside. As a result,
possible input errors occurring during sales order processing and
entering of redundant data is avoided.

You can enter a sales order with many items in a single screen.

Order Processing Functionality

Delivery scheduling
Availability check
Transfer of requirements
to MRP
Pricing
Credit check
Shipping point & route
determination
Foreign trade & license
processing
Document flow

Standard order
Systematic process like order delivery
billing and payment.
Delivery will be scheduled after 1 weak.
Billing is delivery related billing.
The decampment type is OR.

Item categories

Item categories
Item categories control the item data.
Item data carries the information related to
materials in the sales document.
Item categories are dependent to
document types.
Every sales document will have individual
item categories.

Item categories

Type of item categories

Standard item
Free of charge item
Text item
Non stock item

Item categories for pre sales

activities

Inquire item- AFN, AFNN, AFX, AFTX.

Quotation- AGN AGNN, AGX, AGTX.
ContractScheduling agreement

Item categories for sales

documents
Standard order- TAN, TANN, TATX, TAX.
Cash sales BVN, BVNN.
Rush order TAN, TANN, TATX, TAX.

Schedule line categories

Schedule line categories

Types of schedule line categories

Inquiry A
Quotation B
Order C
Returns - D

D- No inventory mgt.
X- No inventory mgt with
goods issue.
N- No MRP
P-Material Requirement
Planning.
V-Consumption based
planning.

Special sales documents

Special sales documents

Rush order
Cash sales
Free of charge subsequent deliveries
Free of charge delivery
Invoice correction request
Consignment process

Cash sales
Order, delivery and billing is done on the
same day.
Document type is CS.
Item category is BVN, BVNN.

Rush order
Order and delivery is done on the same
day.
Billing can be done later date.
Document type is RO.
Item category is TAN, TANN

Returns
Customer returns damaged goods.
Document type RE
Item category REN

Returns and Complaints

Overview

SAP AG

Returns & Complaint

Processing : Process Flow

Customer

Own
SAP

Return Request
Search for sales order with
reference to Batch Number

Create Return Order & Assign Batch Number

Create Return Delivery

Post Goods Receipt

Inspect Goods Receipt

Create Usage Decision

Release credit memo request to billing

Create Credit Memo

Business View Returns

Return
Return
Orders
Orders

Credit
Credit
Return
Return
Deliveries
Deliveries
Quality checks

Manual Defect Recording

Goods receipts

Returns - Order
Billing
Batches

Order
Customer:

C6000

Product:

Material J60

Price:

INR 100 / pc

Quantity:

10 pallets

No
Availability Check
Check of the Credit Limit
Listing
...

Pricing

EAN/UPC

Returns - Delivery
April

Order

23

Order
Customer:

C6000

Product:

Cookies

Price:

5 CNY / pc

Quantity:

10 pallets

Shipping
Batches

documents

Returns & Complaints

Complaints
Credit Memo Request
Customer
Product
Order Reason
Credit

Value

Billing
Credit Memo (Value)
Customer

C6000
11600001
YB2
1000 INR

Credit memo request

Settlement for returns, customer balances
Document type G2
Item category G2N

Returns Credit Memo

April

23

Order /
Delivery

Order
Pricing

Customer:

C6000

Product:

Cookies

Price:

5 CNY / pc

Quantity:

10 pallets

Central payer,
purchasing group

Subsequent
refunds

Credit memo

Customer

Own
SAP

Customer Complaint

Create credit memo request

Release credit memo request to billing

Create credit memo

Debt memo request

Collecting extra charges from the
customer.
Document type L2
Item category - L2N

Subsequent free of charge

Issuing of fresh stock for damaged stock.
Document type
Item category

Free of charge delivery

Sample to customer and employees.
Document type
Item category

Invoice correction request

Invoice correction procedure.

Consignment process

Consignment fill-up
Consignment issue
Consignment return
Consignment pick-up

Consignment Processing : Fill

UP Process
Fill Up Order

Create Fill Up Delivery

Picking

Goods Issue

Excise Invoice

Print Excise Invoice

Stock Overview

Consignment Processing : Issue

Process Flow
Consignment issue

Create Issue Delivery

Picking

Goods Issue

Billing

Stock Overview

Consignment Processing : PICK

UP Process Flow
Pick Up Order

Create Pick Up Delivery

Picking

Goods Receipt

Stock Overview

Consignment Processing Fill

Up : Process in SAP
Fill Up Order

Outbound
Delivery
with SO
Reference

Picking

Goods
Issue

Product
Proforma
Costing
Billing

Create
Excise
Invoice

Print
Excise
Invoice

Update
Excise
Registers

Consignment Processing
Issue : Process in SAP
Issue Order

Outbound
Delivery
with SO
Reference

Picking

Goods
Issue

Product
Billing
Costing

Consignment Processing
Pickup : Process in SAP
Pick Up Order

Outbound
Delivery
Pick Up
with SO
Delivery
Reference

Picking

Goods
receipt

J66: Make-to-Order Quotation

Processing / Order Processing
Overview

SAP AG

Scenario Make-to-Order
Quotation Processing / Order
Processing

Overview
This scenario is made up of several building blocks, which contain the
preconfiguration settings required for the Make-to-Order Quotation
Processing / Order Processing scenario. Building blocks can help you to
implement the solution and put it into production quickly.
To illustrate the scenario presented in this overview document, the
business view and the component view provide two different perspectives
on the business scenario.
Business View
The business view shows the business partners participating in the Maketo-Order Quotation Processing / Order Processing scenario, the entire
scope of the business processes, and the benefits for the parties involved.
Component View
The component view shows the processes and technical components that
are involved in the Make-to-Order Quotation Processing / Order Processing
scenario.

Business View Make-to-Order

Quotation Processing/ Order
Processing

Business Benefits

Supplier

Customer

Business Benefits

Request for Quotation

Credit limit check:

The document is blocked if
the customer's credit limit
has been exceeded. The
document is blocked for
further processing for credit
reasons.

First Quotation with Variant

Configuration

Credit Limit Check

Variant configuration
with BoM explosion:
Configuration of the
selected robot using
characteristic value
assignments and
dependencies for the
specific specifications

Request for Technical

Change

Follow-on Quotation

Differentiation between
original and follow-on
quotation:
Copy control for creation of
follow-on quotations with
reference to an original
quotation

Request for Commercial

Change (Price Reduction)

Recalculation and
Resubmission to Customer

Acceptance of Quotation

Pricing for components

including variant
conditions

Business View Make-to-Order

Quotation Processing/ Order
Processing

Business Benefits

Supplier

Customer

Sales Order Creation with

Reference to Quotation

Material Requirements
Planning

Billing plan including

down payment:
- Creation of billing plans
with down payment
agreements in sales
documents
- Creation of down payment
requests
- Posting of incoming
payments for a down
payment request
- Creation of partial or final
invoice with down
payment clearing

Order Confirmation and

Down Payment Request

Down Payment

Production Order
Processing

Delivery Processing

Invoicing

Business Benefits

Component View Make-toOrder Quotation Processing /

Order Processing

Customer

Supplier
SAP R/3

Customer sends a request for

quotation (RFQ) for a robot.
First quotation: Preselection of the configurable robot using classification criteria. Manufacturer uses
both prefabricated components and components that are produced to order.
Configuration of the selected robot using characteristic value assignments based on the
characteristics given in the customer specification (RFQ).
Pricing estimation based on variant configuration. Robot is only configured at the top configuration level.
Credit limit check (optional): The credit limit check is automatically carried out when the quotation is saved.
If the customer credit limit is exceeded, further sales order processing is blocked.
Manufacturer prints out the quotation and sends it to the customer.
Customer requests a technical
change to the quotation.
Realization of the required technical changes (delete items, change quantities, add alternative items,
add individual material, add text position) and resubmission to the customer (follow-on quotation).
Manufacturer prints out the quotation and sends it to the customer.
Request for commercial
change (price reduction)
Recalculation\ commercial change (discount at item level) of the follow-on
quotation and resubmission to the customer.
Manufacturer prints out the quotation and sends it to the customer.
Customer accepts the
quotation.
Sales order creation with reference to the follow-on quotation

Continued on next page

Component View Make-toOrder Quotation Processing /

Order Processing

Customer

Supplier
SAP R/3
(Automatic) determination of confirmation date for delivery
Material Requirements Planning (Generation of planned orders; purchase requisition)
Determination of production dates according to delivery date
Display/print out order confirmation and down-payment request
and send to the customer

Down payment
Post down payment receipt from the customer
Convert planned order to production order and adjust order according to exception messages
Production order processing (order release, material staging, completion confirmation,
production controlling, goods receipt)
Delivery processing (picking, goods issue)
Creation of billing document

Make-to-Order (MTO):
Quotation Processing

Baseline
Machinery and Equipment Value Chain 4
J66

Overview

Content

Make-to-Order

Quotation
Processing

Quotation
Quotation Processing
Processing
-- Selection
Selection of
of the
the configurable
configurable robot
robot via
via
classification
classification data
data
-- Configuration
Configuration of
of the
the robot
robot via
via characteristic
characteristic
value
value assignment
assignment
-- Pricing
Pricing based
based on
on variant
variant configuration
configuration
-- Credit
Credit limit
limit check
check
-- Technical
Technical and
and commercial
commercial changes
changes of
of the
the quotation
quotation
-- Follow-on
Follow-on quotation
quotation
-- Sales
Sales order
order creation
creation

Make-to-Order (MTO): Sales

Order Processing

Baseline
Industrial
Machinery
& Components
Machinery
and Equipment
Value Chain 4
J66
B

O v eSummary
r v i e w Content
Content
Make-to-Order

Sales
Sales Order
Order Processing
Processing

Sales order processing

- Sales order creation
- Material Requirements Planning (MRP)
- Order confirmation
- Down payment
- Production order processing
- Delivery processing
- Billing

Organizational Structure

Operating
Concern

BP01

Controlling
Area

BP01

Company
Code
Plant
Country
City

BP01
BP02
Production Distribution
Plant
Center

Sales Org.

BP02

BP01
01

01

Distribution Channel
Division

BP0X

BP01
BU SMB Company

01

01

01
01

02

BU SMB
Inter C US

BP03
Storage

BP0X
IC Plant

BP03

BP0X

01
01

03

02
01

Material Master Data

BIMC-100000 Six-Axes Industrial Robot
B1110 Wrist IW 49II
B1111 Wrist IW 90 II
B1120 Arm type 30-K/1
B1121 Arm type 60-K/1
B1122 Arm type 60L45-K/1
B1123 Arm type 60L30-K/1
B1130 Link arm 50
B1133 Device for add. axis
B1135 Link arm 65
B1136 Link arm 80
B1137 Energy supply system A1
B1138 Electronic probe
B1139 Belt tension measure device
B1140 Counter balance system 30
B1141 Counter balance system 45
B1142 Counter balance system 60
B1150 Rotating column
B1160 Base frame
B1161 Hexagon bolt
B1162 Locating bin

J54: Third Party with Shipping

Notification
Overview

SAP AG

Scenario Third Party with Shipping Notification

This scenario is made up of several building blocks, which
contain the preconfiguration settings required for the Third party
with shipping notification scenario. Building blocks can help you
to implement the solution and put into production quickly.
In third-party order processing, your company does not deliver
the items requested by a customer. Instead, you pass the order
along to a third-party vendor who then ships the goods directly to
the customer and bills you.
In this scenario, the shipping notification is entered as a dummy
goods receipt in consumption. For this, the customer invoice can
be created before receiving the incoming invoice from the vendor.
Business View
The business view shows the business partners participating in
the Third party with shipping notification scenario, the entire
scope of the business processes, and the benefits for the parties
involved.

Overview

Sales Order
Purchase Order

Goods Receipt
Billing
Vendor Invoice

Third Party with Shipping

Notification

Business
Benefits
Handover of
customers
requirements
directly to
external
supplier
Invoice from
trader to
customer bases
on quantities
from the
shipping
notification
Invoice from
trader to
customer can
be created as
soon the
shipping
notification is
received

Supplier

Trader

Customer

Customer
requirements (Sales
order)
Procure material from
external supplier
(Purchase Order)
Delivery from supplier
to customer

Send shipping
notification

Receive shipping
notification

Invoice from supplier

to trader

Invoice from trader to

customer

Business
Benefits
Fulfillment of
customers
requirements
despite of
material
shortage

Third Party Sales with Shipping

Notification : Process in SAP

Create
Sales
Order
Automatic
Purchase
Req.
generation

Create
Purchase
Order
Goods Receipt

Product
Billing
Costing

Vendor
Invoice

J55: Third Party without

Shipping Notification
Overview

SAP AG

Scenario Third Party without Shipping

Notification

This scenario is made up of several building blocks, which

contain the preconfiguration settings required for the Third
party without shipping notification scenario. Building blocks
can help you to implement the solution and put into production
quickly.
In third-party order processing, your company does not deliver
the items requested by a customer. Instead, you pass the order
along to a third-party vendor who then ships the goods directly
to the customer and bills you.
In this scenario, no shipping notification is sent by the external
supplier. The incoming invoice from the vendor updates the
billing quantity, so that the customer-billing document is only
possible after entering the invoice from the vendor.

Business View
The business view shows the business partners participating
in the Third party without shipping notification scenario, the
entire scope of the business processes, and the benefits for
the parties involved.

Overview
Sales Order

Billing

Purchase Order

Vendor Invoice

Third Party without Shipping

Notification

Business
Benefits
Handover of
customers
requirements
directly to
external
supplier
Invoice from
trader to
customer bases
on quantities
from suppliers
invoice

Supplier

Trader

Customer

Customer
requirements (Sales
order)
Procure material from
external supplier
(Purchase Order)
Delivery from supplier
to customer

Invoice from supplier

to trader

Invoice from trader to

customer

Business
Benefits
Fulfillment of
customers
requirements
despite of
material
shortage

Third Party Sales without

Shipping Notification

Create
Sales
Order

Automatic
Purchase
Req.
generation

Create
Purchase
Order

Vendor
Invoice

Product
Billing
Costing

Sales at Depot Overview

SAP AG

Sales from Depot : Process

Flow

Depot

Manufacturing Plan

Sales Order

Create Delivery

Stock Transfer PO

Excise RG 23D Updation

Delivery From factory

Billing

Create Excise Invoice

Printing Billing Document

Goods Receipt at Depot

Update GR in RG23D

Sales from Depot : Process in

SAP

Create
Stock
Transfer PO

Outbound
Delivery at
Factory

Create
Excise
Invoice at
Factory

GR at Depot
and RG23D
Update

Create
Sales
Order

Outbound
Delivery
with SO
Reference

Create
Shipment

RG23D
Update

Product
Billing
Costing

Print
Excise
Invoice