Sales Order Processing with Export ControlSAP Best Practices for Apparel and Footwear (India) SAP Best Practices

Scenario Overview 1Purpose This scenario describes the export Sales Order process from Sales Order Entry to Billing for the Apparel and Footwear industry. The process is designed to demonstrate the various AFS functionalities for sales order processing. The scenario contains additional R/3 standard and AFS-specific functionality:Pricing conditions (SKU Pricing)Availability check (on batch level) incl. dialogAllocation Run (FIFO logic, fulfillment rate)Foreign Trade: Legal controlBenefits When selling of legal control relevant materials to customers, legal control check can be done automatically. It helps process the foreign trade business more accurately.Sales order which are blocked for failed legal control can be released in exceptional cases. It is more flexible in processing of sales order.Key process flows coveredCreating sales orderReleasing Sales Order Order confirmationAllocation Run Delivery plus Picking and Post Goods IssueBilling Purpose, Benefits and Key Process Flows:

Scenario Overview 2Required EHP3 for SAP ERP 6.0Company roles involved in process flowsSales Administration Warehouse ClerkSales BillingSAP Applications and Company Roles:

Scenario Overview 3 Sales Order Processing with Export ControlThe process starts with the creation of a foreign customer's sales order. The quantities are entered on material-size-color-level (Matrix-Entry). When an order is entered, availability check is performed in the background. Different price will be found (SKU Pricing) base on different material size. To the material which is activated individual legal control, if there is no valid license master for the combination of material classification and the destination country, the sales order will be blocked. In exceptional cases it could be necessary to allow the export. So we need to release the sales orders which are blocked for further processing.An order confirmation after sales order creation can be created and printed. During Sales Order Entry ATP allocates existing stock only temporarily. So we need to do Allocation Run to allocate stock to sales orders finally. The A-Run will put the status F (fixed) if the fulfillment rate is fulfilled. The allocation of goods is necessary to create a delivery note. Delivery is executed on the basis of the sales order after A-Run. Then, the quantity of the material is completely picked, the warehouse clerk will have to systematically relieve the inventory. This relief of inventory is the actual recording of the physical quantity that is being shipped to the customer. This results in the recording of the cost of goods sold in financial accounting.Once the inventory has been relieved, the delivery can be invoiced and the revenue, together with the cost of goods sold, is recorded in management accounting. This step signifies the end of the business transaction in Sales and Distribution. The final step of this document describes how invoices are posted, customer statements are prepared and printed, and the incoming payments are recorded, and then cleared to make sure that the open customer account balance is reconciled. Detailed Process Description:

Process Flow DiagramCustomerSales Order Processing with Export ControlWarehouse ClerkAccounts ReceivableEventCustomer Needs to Buy ProductInventory COGSAR= Accounts Receivable, COGS = Cost of Goods Sold Delivery NoteOrder ConfirmationAllocation RunDelivery plus Pick and Post Goods IssueARIncoming Payment (157)Billing DocumentClosing Operations SD (203)Sales BillingBillingSales AdministrationOrder Confirmation(Print Sales Order)Release Sales OrderValid legal control?YesNoSales Order Entry

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External to SAPBusiness Activity / EventUnit ProcessProcess ReferenceSub-Process ReferenceProcess DecisionHardcopy / DocumentFinancial ActualsBudget PlanningManual ProcessExisting Version / DataSystem Pass/Fail Decision

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