Overview of Sales Processes

Question 1

Process phase

Answer 1

Sales and distribution process may be triggered by specific marketing and pre-sales measure (Inquries, quotations etc.)

Question 2

Sales order processing

Answer 2

the customer(s) will order the corresponding goods and/or services. A sales order is then created to represent this process step in SAP S/4HANA

Question 3

Procurement

Answer 3

The way in which a material is procured can depend on the material itself as well as on the sales transaction.

material can be procured..

• Directly from stock
• By replenishment from a vendor (via a purchase requisition or a purchase order
• y replenishment through own production (via a planned order or a production order)

Question 4

Shipping Processing

Answer 4

When the procurement of the requested material is assured, shipping processing can begin

the creation of outbound deliveries is the first step of the shipping proces

The outbound delivery controls, supports, and monitors numerous process steps, such as the following:

• Picking and confirming via warehouse management functions (optional)
• Packing (optional)
• Transport planning and monitoring via shipment documents (optional)
• Posting the goods issue

Question 5

Billing process

Answer 5

After the shipping process has been completed, the billing documents can be created

This can be done with reference to one or more outbound deliveries (when selling physical products) or with reference to sales orders (when selling services). In both cases, the relevant information is copied from the preceding documents into the billing document

The billing document serves as a data source for financial accounting, to help you monitor and process customer payments

When a billing document is created, the general ledger accounts are normally determined automatically and the relevant data is posted. The system creates the following:

• A debit posting on the customer’s receivables account
• A credit posting on the revenue account

Question 6

Payment

Answer 6

Technically part of FI module

Incoming payment from the customer is recorded within the accounting department. The data on the relevant general ledger accounts is then posted automatically as follows:

• A debit posting on the cash account
• A credit memo on the customer’s receivables account

Question 7

Process flow

Answer 7

The linking of the documents within a sales and distribution process can be displayed via the process flow. This enables you to access the history and current status of the relevant documents at any time.

Question 8

Header level

Answer 8

The data for the document header is valid for the entire document. This includes, for example, the document number and customer-related data like the relevant sold-to party.

Question 9

Item level

Answer 9

Each item in the sales document contains its own data. This includes, for example, data about the ordered materials and corresponding quantities. Each sales document can contain several items, and the individual items can be controlled differently. Examples include the material item, service item, free-of-charge item, or text item.

Question 10

Schedule line level

Answer 10

Schedule lines contain delivery quantities and delivery dates. They clearly belong to an item. Every item that should be physically delivered must have at least one schedule line. The item can have several schedule lines if, for example, the ordered quantity is to be delivered in several partial deliveries at different times.

Question 11

Structure of Delivery Documents

Answer 11

• Header level, The data for the document header is valid for the entire document. This includes, for example, data for the ship-to party and deadlines for shipping processing
• Item level, Each item in the delivery document contains its own data. This includes, for example, data about the material, quantities, weights, and stock information. Each delivery document can contain several items, and the individual items can be controlled differently. Examples include material items, free-of-charge items, or text items.

Question 12

Picking

Answer 12

To execute the picking process within SAP S/4HANA, SAP recommends using SAP Extended Warehouse Management (EWM)

When the goods issue is posted in SAP EWM, a final outbound delivery (in SAP EWM) is created automatically. This document triggers the goods issue posting in inventory management.

Question 13

To execute physical goods movements in the warehouse, warehouse tasks are used. Warehouse tasks are needed for the following

Answer 13

• Picking
• Putaway
• Internal movements
• Posting changes
• Goods receipt postings
• Goods issue postings

Question 14

Warehouse Task

Answer 14

A document that tells the warehouse worker what he must do

• When the warehouse task is executed, the warehouse worker confirms that the quantity of the product is picked from the source bin and arrived at the destination bin.
• Any deviation must be recorded with an exception code.
• Warehouse tasks are bundled into warehouse orders.

Question 15

Goods issue

Answer 15

Posting the goods issue is often the final step in the shipping process.

When the goods issue is posted, the following is carried out automatically:

• Inventory management, The quantity in inventory management and the delivery requirements in materials planning are updated.
• Balance sheet accounts, The value change in the balance sheet accounts for inventory accounting is posted (the postings from the relevant accounting document are based on the cost of the material).
• Financial accounting, Additional documents are created for financial accounting.
• Billing due list, The respective delivery can now be used as basis for billing.
• Status update, The status in all the associated documents is updated.

Question 16

Billing Documents

Answer 16

Main type of billing documents is the invoice. The creation of invoices is often the last step in a sales and distribution process. You can create invoices with reference to outbound deliveries (if you have delivered physical products to the customer) or with reference to sales orders (if you have sold services)

The system can combine a number of preceding documents (such as outbound deliveries) in one billing document, providing these documents have the same values for some relevant characteristics, such as the following:.

• Payer
• Billing date
• Destination country

Question 17

Billing Document Structure

Answer 17

• Header level, The data for the document header is valid for the entire document. This includes, for example, data about the payer and the billing date.
• Item level, Each item in the billing document contains its own data. This includes, for example, details about the material, billing quantities, and net values for the items. Each billing document can have several items.

Question 18

Effects of Billing document

Answer 18

• The system automatically generates all the required documents for accounting.
• It carries out a debit posting on the customer receivables account and a credit posting on the revenue account.
• The postings can be reproduced using the corresponding accounting document, which can be accessed directly via the billing document or via the process flow.
• the system can automatically generate additional documents for financial accounting (for controlling as well as for profitability analysis)
• The status is updated in all the related sales, delivery, and billing documents.
• The customer’s credit limit data is updated (if the corresponding function is used).

Question 19

Incoming Payment

Answer 19

The posting of incoming payments is done in the financial accounting department. When an incoming payment is posted, the data on the relevant G/L accounts is posted automatically.

The system does the following:

• posts a debit on the cash account
• enters a credit memo on the customer’s receivables account