S4 HANA SALES PROCESS OVERVIEWS Flashcards
Order-to-cash business flow
- Sales Inquiry
- Sales quotation
- Sales order
- Sales outbound delivery
- Sales invoice
- Sales payment receipt
Sales inquiry
Customers reach out to the Sales organization to find out the details of products and services, prices, potential delivery schedule in order to ascertain if their requirements can be met.
- Sales inquiry is captured in the application using a standard document type IN
- A sales area is entered to report the inquiry against a particular sales org, distribution channel and divison
- Product / Service details along with tentative pricing and delivery information is entered
- Copy control configurations help in managing the document flow in the application
Sales quotation
Company’s sales department respond to the sales inquiry by providing the details of products and services, prices, potential delivery schedule to the customer. This interaction is captured in the form of a sales quotation and is legally binding with a validity period on the company to fulfil as per the terms of the qutotation
- A sales area is entered to report the quotation against a particular sales org, distribution channel and division
- Product / Service details along with pricing and delivery information, payment terms, validity period
- Copy control configurations help in managing the document flow in the application
Sales order
Company’s sales department books the sales order by prodviding the dtails of products and services, prices, actual delivery schedule to the customer
- Sales area is entered to report the older against a particular sales org, distribution channel and division
- Product / Service details along with pricing and delivery information, payment terms, confirmed delivery dates are entered
- Copy control configurations help in managing the document flow in the application
Sales outbound delivery
Company’s logistics delivery department processes the sales outbound delivery and executes the picking, packing, loading and goods issue confirmation
The logistics execution processes are captured in the form of a sales outbound delivery and it is usually created with reference to the confirmed schedule line of the sales order
- Shipping point is entered to report the delivery against the sales order confirmed schedule lines
- Product / Service details along with quantity gross/net weight information, international commercial (inco) terms, actual delivery processing dates and statuses are captured
- Copy control configurations help in managging the document flow
Sales Invoice
Company’s accounts receivable department enters the sales invoice by providing the details of prodcuts and services, prcies, actual delivery quantitties to the customer.
- Company code is identified to report the invoice against a particular sales order line
- Product / Service details along with pricing and elivery quantities, payment terms are captured based on the information from sales order line and outbound delivery
- Copy control configurations help in managing the document flow
Sales payment receipt
Company’s accounts receivable collections department enters the sales payment by providing the pricing and amount details in the document
- Open invoice amount is cleared once the payment is entered against the invoice
- Customer can make single payment which can be distributed against multiple invoices
- Usually payment processing falls outside the purview of sales department
Sales order configuration overview
SAP SD Process is mainly controlled by the following three parameters
- Sales Doc Type
- Item Category
- Schedule line Category
Sales doc type
Controls the type of sales process whether it is a standard order or special sales order.
Has various parameters to control the pricing, billing, number ranges of the order process.
Controls the header level data and process of a sales order
Item Category and Schedule line categories
control the item level and schedule line level data and process of a sales order
Sales document type
- Number Ranges
- Screen sequence of Sales order
- Incompletion Logs
- Allowed Delivery types
- Allowed Billing types
- Credit Check Control
- Pricing procedure Control
- Delivery, Billing Blocks & proposal of delivery dates
Sales document type: General control 1
Reference Mandatory
Read Info Record
Item division & Check division
Output application
Reference Mandatory
This parameter when set, requires a Quotation / Contract / reference document for the sales order to be created. It can’t be created as a stand alone document
Read Info Record
This parameter controls whether the system should read the Customer Info record while creating a sales order of this document type
Item division & Check division
These two control whether the header division is copied to all the items in the order and can’t be changed because the system throws an error or warning. Or if it is possible to take the item dividison from the material master which is different from that of header
Output application
Here, we assign the header level output determination procedure that identifies the various output types available for sales documents of this type. These output types model business communication documents like order confirmation, customer invoice, payment reminders sent to different stake holders.
Sales document type: General control-2
Check credit limit
Screen Sequence group
in completion group (procedure)
Quotation/Outline agreement messages
Document pricing procedure indicator
Check credit limit
We assign either an automatic credit check none for the documents of this type
*payer’s credit limit as the basis and credit exposure equals to all open items - open orders, deliveries, invoices, and receivables*
Screen Sequence group
Controls the various screens and the sequence in which they appear for documents of this type. Differs from inquiry -> quotation -> order -> Contract
in completion group (procedure)
Controls the fields that appear in the log for in completion, when the user doesn’t enter them in the sales order header
Quotation/Outline agreement messages
control identification and copying of open quotations and contracts available for the same item-customer combination during the order processing
Document pricing procedure indicator
in conjuction with Customer pricing indicator (set in sold-to party -> Sales view) for a sales area determines the pricing schema. Hence, it is possible to have different pricing approaches for various different sales processes in the particular sales dept. / market segment
Sales document type: shipping
Delivery type
Immediate delivery
Delivery Block
Shipping conditions
Delivery type
We set the delivery type applicable for orders of this sales doc type
Immediate delivery - this indicator controls whether the delivery document is created automatically while saving the sales order. This parameter is useful in setting up of a few special sales scenarios like Cash Sales, Rush Orders etc.
Delivery Block
We can block the orders created using this doc type for delivery creation. This is useful when free-of-charge sample orders are created as some authorized personnel needs to clear the block before delivery processing can start
Shipping conditions
Shipping conditions control how the customer needs the order to be processed - Express, Standard…which allows to identify the shipping point and say fastest route. The parameter set here over rides the shipping conditions assigned to the sold-to party of the customer
Sales document type: billing
Delivery / Order related billing types
Inter company billing type
Billing Block
Billing Plan type
Delivery / Order related billing types
These are proposed when orders are created using this sales doc type. Whether, the order-related or delivery realted billing is controlled by the item category of the line item in the sales order
Inter company billing type
This is proposed when inter-company billing is done
Billing block
Orders are blocked for billing esp this is useful in case of returns, credit / debit memo requests. Some authorized personnel needs to clear the blocks before billing is processed
Billing Plan type
If the order is relevant for billing plan - periodic/mile stone - then it is mentioned in this field. Examples of periodic bills are rental and utility bills, while the project mile stone bills are examples of milestone bills.
Sales document type: delivery dates
Lead time in days & Propose delivery date
Propose pricing date PO date & Valid from
Lead time in days & Propose delivery date
We can mention the default lead time in days for orders of this doc type While calculating the requested delivery date, system will add this number to the doc date to propose the delivery date. The propose delivery date check box should be set for automatic delivery date proposals
Propose pricing date, PO date & Valid from
These control how pricing date, PO dates are proposed in sales orders. Valid from is useful in case of quotations to ientify the validity start of the document
Sales document type; contract dates
In Contract and Scheduling agreement areas in Sales doc type configuration, we have settings to control how the scheduling agreement delivery schedules ( JIT / Forecast) are considered in MRP and whether they are relevant for delivery
We set the correction delivery type and elivery block indicator for the scheduling agreement
Similarly, for contracts, we can set contract profile that controls the validity dates of the contract. It is possible to set the follow0up activity types like telephone calls, Sales call etc. as well as subsequent doc
Item Category functions
Pricing relevance
Billing type
Schedule lines allowed & item delivery relevance
Completion Rule
Bill of material
Special Stock indicator
Pricing relevance
Whether the item is relevant for pricin or not and is free-of-charge
Billing type
Whether the billing of line item is based on Order or delivery
Schedule lines allowed & item delivery relevance
Whether schedule lines are allowed and there by creation of delivery document
Completion Rule
Relevant in quotations, inquiries, contracts where in the completion criterion is total quantity / Value referenced based on which the item is considered as complete
Bill of material
Structure explosion is possible at single-level or multi-level of BOM
Special stock indicator
Controls the item stock tracked using special stock indicator and made applicable for availability check
Item Category functions contd
Billing blocks
Billing plan type
Return indicators
Business data indicator controls
Incompletion procedure
Partner determination procedure
Text Determination
Business data
controls if we can have differing business data
Incompletion procedure
Controls which fields at item level are added to the incompletion log
Partner determination procedure
Controls the various partner functions
Text determination procedure
Controls the item level texts identified for the line item
Item Category determination
Sales doc type + high level item category + item usage + item category group
Item category: billing type determination
Item category billing relevance + order related billing type set in sales doc type or sales doc type
AGN
Standard outation item, in quotation processing, the items are not relevant for delivery, but pricing is allowed
TAN
Standard Order item - standard sales order processing, pricing, inventory control, delivery processing and billing are allowed
TANN
Free-of-charge order item, In this case, the items are not charged and are usually used in sales discounts and promotions
REN
Return Order Item, in returns processing, items are assigned to this category which allows inward stock movement
Schedule line category
Schedule line functinality
Relevant for delivery processing
Movement type
Availability check possible
Whether requirement is transferred to MRP
Delivery block
Incompletion procedure
Schedule line category naming
2 digit max Alpha numeric character
First didgit identifies the document type
Second digit identifies the function related to MRP, inventory management, Planning etc
Schedule line category determination
Item category of Order Line + MRP Type of the item -> Schedule line category
Pricing schema
Determined in a sales order based on customer pricing indicator set in sold-party for the sales area and document pricing indicator set in the sales document type configuration
Means that system allows different pricing procedures for different market segments and / or sales processes offered
In a sales order, the pricing schema is first determined at the document entry and based on the condition types and pricing condition data defined in the procedure, system automatically determines the header and item level prices
New output determination
Based on BRF (business rules functionality) and outputs are based on Adobe forms
ATP Check conditions
Material availability date, system checks for receipt of material and issue quantities
Transfer of requirements (TOR)
Once the ATP check onfirms the qty, it transfers the requirement to MRP so that the stock/requirements list for the material in the plant is up to date
Requirement classes
Control the ATP checks and TOR for all sales document types
Requirement types
Identify the requirement classes
Requirement type determination in sales order
Item category + MRP type
Requirement type and requirement class relationship
Many-to-one
Checking group
Control whether the transfers are done at individaul sales order / daily sales requirements
Assigned to the material master general/plant view
ATP Checking process
Controlled by checking rule along with Checking roup
Delivering plant determination
- Customer material info record
- Business partner data of ‘ship-to party’
- Material master - Sales org1 view
Shipping point determination
- Shipping conditions – determined from sold-to party or sales document type (which has higher precedence)
- Loading group – determined from customer master
- Delivering plant – determined from sales order
Route determination
Determined in the sales order in order to ascertain the freight costs
Depature zone (identified from shipping point)
shipping condition (identified from sales document type or sold-to party)
Transportation group (identified from material master Sales/plant data)
Transportation zone (identified from ship-to party)
Quantity Contract
Used to limit the quantity of product sold to the customer and will have validity period
Value Contract
Used to limit the total value of products sold to the customer and will have validity period
