tscm60 notes
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Notes from TSCM60 CourseTRANSCRIPT
TSCM-60 Notes
ContentsUnit 2 – Overview of Sales Processes.....................................................................................................5
Process Map.......................................................................................................................................5
Pre-sales activities..............................................................................................................................5
Sales Order Processing.......................................................................................................................5
Procurement......................................................................................................................................6
Shipping..............................................................................................................................................6
Billing..................................................................................................................................................6
Payment.............................................................................................................................................6
Unit 3 – Master Data in Sales and Distribution Processes......................................................................7
Customer Master Data.......................................................................................................................7
Material Master Data.........................................................................................................................7
Customer-Material Info Record..........................................................................................................7
Condition Master Data (Condition Records).......................................................................................7
Types..............................................................................................................................................7
General...........................................................................................................................................8
Output Master Data...........................................................................................................................8
Incompleteness..................................................................................................................................8
Common Master Data........................................................................................................................8
Unit 4 – Sales and Distribution Processes – Data Determination and Collective processing..................9
Function of the Sales Document Type................................................................................................9
Plant, Shipping Point and Route Determination...............................................................................10
Plant.............................................................................................................................................10
Shipping Point Determination......................................................................................................10
Route Determination....................................................................................................................10
Shipment Scheduling....................................................................................................................10
Collective Processing....................................................................................................................11
Unit 5 – Availability Checks..................................................................................................................12
Basics................................................................................................................................................12
Control of availability check.............................................................................................................12
Requirements transfer.....................................................................................................................12
Complete and partial deliveries........................................................................................................13
Sample Scenarios..............................................................................................................................13
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Case 1 – Confirmation on the Requested Delivery Date...............................................................13
Case 2 – Confirmation for a Later Date.........................................................................................14
Case 3 – Partial Deliveries.............................................................................................................15
Case 4 - Check with Replenishment Lead Time............................................................................16
Backorder Processing.......................................................................................................................17
Transportation Processing................................................................................................................17
Unit 6 – Sales and Distribution Processes with Make-to-Order Production.........................................21
Presales Processing..........................................................................................................................21
Function of the Item Category..........................................................................................................22
Assembly Processing........................................................................................................................23
Make-To-Order Flow....................................................................................................................23
Unit 7 – Complaints Processing............................................................................................................27
Credit Memo Requests.....................................................................................................................27
Overview......................................................................................................................................27
Processing.....................................................................................................................................27
Returns.............................................................................................................................................28
Invoice Correction Requests.............................................................................................................29
Cancelling a Billing Document..........................................................................................................29
Advanced Returns Management (EHP4)..........................................................................................30
Unit 8 – Analyses for Sales and Distribution Processes........................................................................31
Lists and Reports..............................................................................................................................31
overview.......................................................................................................................................31
Lists...............................................................................................................................................31
Unit 9 – Company Structures – Customizing........................................................................................32
Enterprise Structures in Sales and Distribution................................................................................32
Objectives.....................................................................................................................................32
Integration of sales in Financial Accounting.................................................................................32
Organizational Structures in Sales....................................................................................................33
Overview......................................................................................................................................33
Sales Organization........................................................................................................................33
Distribution Channel.....................................................................................................................33
Division.........................................................................................................................................34
Sales Area.....................................................................................................................................34
Sales Office...................................................................................................................................34
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Sales Groups.................................................................................................................................34
Salesperson..................................................................................................................................34
Plant.............................................................................................................................................35
Unit 10 – Sales Order Processing..........................................................................................................35
Information Sources and Data Transfer............................................................................................35
Overview – Sources for Document Data.......................................................................................35
Business Partners from the Customer Master..............................................................................36
Proposing Order Data from the Customer Master.......................................................................36
Business Data...............................................................................................................................36
Proposing Plants Automatically....................................................................................................36
Selected Entry Aids and Techniques.................................................................................................37
Sales Summary.............................................................................................................................37
Changing of Sales Documents......................................................................................................37
Blocks...........................................................................................................................................37
Rejection.......................................................................................................................................37
Changes to the Sold-to Party in the Sales Document...................................................................38
Unit 11 – Controlling Sales Documents................................................................................................38
Appendices...........................................................................................................................................38
A Availability Check – Taken from the book “Sales and Distribution in SAP ERP – Practical Guide”.38
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Unit 2 – Overview of Sales Processes
Process Map
Pre-sales activities Establishing and maintaining customer relations Activities include:
o Entering and tracking customer contactso Mailing campaignso Answering customer telephone querieso Inquirieso Quotations
Sales Order Processing The employees at the Customer Service department receive the orders via phone (for
example) and mail. Standard Orders normally contain:
o Customer and Material informationo Price information for all financial statement itemso Information about delivery dates and delivery quantitieso Information about shipment processingo Information about billing
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Procurement In this step in SD you can:
o Check the availability of the ordered goods ando Transfer the requirements to materials planning
Materials Planning (MM) organizes and monitors the actual procurement process, which may include:
o Inhouse-produced and/oro Purchased
Products Procurement can:
o Result from available stocko Be guaranteed by replenishment (PRPO or Planned Order Prod.Order for
example)o Trigger Make to Order productiono Order the outbound delivery via 3rd partieso Organize the outbound delivery via another warehouse (Stock Transfer)
Shipping Shipping processing supports:
o Creation of Outbound deliverieso Picking (by the use of transfer orders)o Packingo Posting of Goods Issue
Billing Billing supports:
o Creation of invoices for goods and serviceso Creation of Credit/Debit Memoso Cancellation of previously posted billing documentso Automatically transfer billing document data to controlling
When billing is carried out, G/L accounts are normally automatically determined and relevant data is posted.
System carries out the following:o A debit posting on the customer receivables accounto A credit posting on the revenue account
Payment Payment is a process that is part of the Financial Accountings module Payment supports:
o Posting payments against invoiceso Reconciling differences
When posting a payment, G/L is automatically updated, and the system carries out the following:
o A debit posting on the cash accounto A credit posting on the customer receivables account
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Unit 3 – Master Data in Sales and Distribution Processes
Customer Master Data
General Data – Valid for all Organizational Units in a Client (ex: Addresses) Sales Area Data – Valid for each Sales Area (ex: Sales, Shipping, Partner Functions) Company Code Data – Valid for each Company Code (ex: Account management) Changes in Customer Master data is not affecting already created documents, only exception
is Addresses which always are kept current
Material Master Data
Consists of following Areas:o Basic Data – Relevant for all areas and is common for all Org. Units in the systemo Sales & Distribution Data – SD Relevant, valid for each Sales.Org and Dist.Channelo Purchasing Datao Accountingo Costing
Material is Division specific By activating the use of Cross-Division in the Sales document type we can enter more than
one division in a Sales Order
Customer-Material Info Record
Customer specific master data Priority over Customer Master and Material Master Used for:
o Cross-Reference of Customer Material – Our Materialo Specific shipping information such as: Delivery Tolerances, Partial Delivery (Yes/No?)
and Default shipping Plant By using the “Ordering Party-tab” we can enter customers material number and the system
will automatically use our material if a Customer Material Info Record is maintained
Condition Master Data (Condition Records)
Types Prices
o Material Priceo Price listo Customer specifico other
Surcharges& Discounts
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o For the customero For the materialo For the price groupo For the material groupo For the customer/materialo For the customer/material groupo For the price group/material groupo Others
Freightso Freight INCO-terms 1+2o Other
Taxeso VATo Other
General We can define condition records to be dependent on a lot of data. For example we can
maintain a material price on a customer basis, or let a discount be dependent on Customer/material group
Condition Type defines multiple uses of a condition %, Quantity- or Amount dependent Surcharge/Discount depending on Condition Type Validity Period can be used for restricting pricing agreement within a period Scales can be used Pricing is carried out using the Condition Technique
Output Master Data Output Determination uses the Condition Technique Transmission Medium, Time, and Partner Function for an Output Type is defined in the
Output Master Data
Incompleteness Each Sales Document contains data that is required for either the document itself or for
further processing The system determines which fields will be displayed in the incompletion log In SPRO we can define which fields that should be part of the incompletion log
Common Master Data If we don’t need the master data (Customer/Material and Condition Master data) to be
different according to distribution channels, we need to set up a Representative Dist.Chan. o Master Data for the representative distribution channel applies to all distribution
channels we have assigned to the representative in SPRO. Above can be applied on Divisions as well
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Unit 4 – Sales and Distribution Processes – Data Determination and Collective processing
Function of the Sales Document Type
Different business processes can be identified and controlled by means of the Sales Document Type. Examples of types in the standard system:
o Standard Order – Invoiced sales on a fixed dateo Rush Order/Cash Sales – Sales from a plant (With or Without Invoice)o Free Deliveries – sales on fixed delivery dates (Without invoice)o Returns – Return goods (Credit memo/Replacement delivery)
Sales Document Type controls the Sales Documents. In similar ways, Delivery type controls the shipping documents and Billing type controls the billing documents
Examples of settings that can be conFigureed/controlled:o Pricing is not needed for free deliverieso Define an output group that can be used for processing sales orders and then create
another output group for processing contacts Outputs contain information that is exchanged between business partners,
such as order confirmations, billing forms, electronic messages between colleagues etc.
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Plant, Shipping Point and Route Determination
Plant The plant plays a central role in Logistics and in Sales, it is the Delivering Plant When processing an item the system tries to assign the plant according to following search
strategy:o 1st Customer Material Info Record 2nd Customer Master Record of the Ship-To party
3rd Entry in Material Master Record Further processing is normally impossible without a delivering plant since:
o Automatic determination of Shipping Points and Taxes failo Availability checks failo Outbound Delivery creation fails
Shipping Point Determination The Shipping Point is an Organizational unit Responsible for processing shipping For Shipping Point, Preparation and packing lead times can be defined Normally determined automatically for each item in the sales document Determined by combination of:
o Shipping Condition from the Customer Master (Sold-To party)o Loading Group in the Material Mastero Delivering Plant
Route Determination Route is the path an Outbound delivery follows from Delivering plant to the Ship-to party Can contain one or more sections Always has a start point and an end point Can be used for defining the actual transit time and lead time for transport planning Normally determined automatically for each item in the sales document Determined by combination of:
o Departure Zone in customizing for Shipping Pointo Shipping Point in Customer Master (Sold-to party)o Transportation Group in Material Mastero Transportation Zone in Customer Master (Ship-to party)
Shipment Scheduling In Shipment and Transportation Scheduling we define the time at which goods receipt can be
confirmed at the customer (Confirmed Delivery Date) Different lead times are taken into account:
o Preparation timeo Loading timeo Transport lead timeo Transit time
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Data used in shipment scheduling:o Order Date – Date on which the order is placedo Material Availability Date – Date by which a sufficient quantity of goods must be
available for picking and packingo Loading Date – Date on which the pick/pack-process is completed so that loading can
begin on timeo Goods Issue Date – Date on which the goods must leave the delivering plant so that
the goods reach the customer on the Confirmed Delivery Dateo Delivery Date – Date on which the goods arrive at the customer
We differentiate between following delivery dates:o Requested Delivery Date – Date on which the customer would like goods to arriveo Confirmed Delivery Date – Date on which we have confirmed a customer goods
receipto When determining delivery date, we can also take the route into accounto Total time includes:o Transit Time – Time required for transporting the goods to the customero Transportation Lead Time – Time required for prepping the goods for transp.
The goal for shipment and transport scheduling is to confirm a delivery date for a material For Backward Scheduling, the customer’s requested delivery date is used to calculate the
Material Availability Date and Transportation Lead Time. The outbound delivery must be created at the earlier of the two dates (Selection Date for the outbound delivery).
o If both dates are after the order date and the material is available on the MAD, the customer’s requested delivery date can be confirmed
o A Schedule Line is created for the sales doc. Item. The date of the schedule line displays the confirmed delivery date and will be the same as the Requested Delivery Date.
o If one of the two dates is before the order date, confirmation of the requested delivery date cannot take place. Therefore, the system tries to determine the next possible date (Forward scheduling).
Forward Scheduling takes into account the time parallels of the work flows for Transportation Planning and Pick/Pack Time of the materials. The longer of the two periods is relevant for scheduling. The Selection Date of the outbound delivery is the earlier of MAD or Transport planning date.
o The earliest date at which the material is available at the WH is the new Delivery Date. This is the new outgoing point for new delivery scheduling
o Two schedule lines are created in the system:o The date of the first schedule line corresponds to the customer’s requested delivery
date and has no confirmed quantityo The date of the second schedule line shows the confirmed delivery date and the
confirmed quantity.
Collective ProcessingPages 175 – 184 in TSCM60
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Unit 5 – Availability Checks
Basics
Triggered when there is an insufficient stock for a material Carried out if:
o The material requires an availability checko The availability check is set in SPRO for this transaction
Material Availability Date is determined from delivery scheduling. On this date, enough material has to be available in time for delivery to the customer for their requested delivery date.
The system calculates MAD by working backwards from the Requested delivery date Availability is checked for the delivering plant on item-level
Control of availability check In customizing, we can define which elements that are included in availability check. We can
for example:o Define which types of stocks
Safety Stock Stock in transfer Stock in quality inspection
o Define which inward movements Purchases Planned order
o Define which outward movements Sales Orders Reservations from MM
o Should be included in the check
Requirements transfer Communication between SD and Procurement is carried out via requirements. The transfer of requirements can affect the availability check Employee responsible for materials planning receives information about sales orders in the
system and the quantities that SD needs to deliver the orders Material for the order can come from both in-house production as well as external
procurement If there is insufficient stock available, purchase orders can be made via Materials planning
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Complete and partial deliveries Any agreements made with the customer affects the result of the availability check
o Depending on the agreements for complete/partial delivery in the customer sales order, we can deliver an order in one complete delivery or several partial deliveries
In a complete delivery all items with the order quantity is delivered For partial deliveries we can distribute items or quantities from one order
between several deliveries The indicator for controlling complete/partial deliveries is proposed from the customer
master record The proposal for the item level comes from the customer material info record, if a customer
and material agreement has been maintained there. o Above two indicators can both be changed during sales order entry
If Complete Delivery is chosen, we can determine that all the items in an order must be delivered together.
o We can also, on item level, decide if we want to split the delivery quantities. Partial Delivery agreements:
o Blank – Partial delivery allowedo A – Create a delivery with qty > 0o B – Create only one delivery (also with qty = 0)o C – Only complete delivery allowedo D – No limit to subsequent deliveries
Sample Scenarios
Case 1 – Confirmation on the Requested Delivery Date
Figure 1 Case1 – Confirmation on the Requested Delivery Date
Using delivery scheduling, the system checks if the goods will be available for the MAD Availability Check includes following:
o Current Stocko Planned inward movements (such as PO’s, PR’s, and Planned Orders)o Forecast outward movements (such as existing SO’s and deliveries)
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For Case 1, the situation regarding outward movements is as follows:Existing inward movements are:
o Stock: 100 pcso Existing Purchase Order with qty of 50 and 60 pcs
Future outward movements:o Sales Orders with qty of 100, 40, and 50 pcs
We now enter another SO for 10 pcso System carries out delivery scheduling (backward scheduling) based on the
customer’s requested delivery date, and determines the MAD, it then runs an availability check for that date
o The availability check shows that the system can confirm the 10 pcs for the requested delivery date
Figure 2 - Result
Case 2 – Confirmation for a Later Date
Figure 3 Case2 Confirmation for a later date
The Original situation for case 2 is the same as case 1. Existing inward movements are:
o Stock: 100 pcso Existing Purchase Order with qty of 50 and 60 pcs
Future outward movements:o Sales Orders with qty of 100, 40, and 50 pcs
In this case however, the customer demands complete delivery We now enter a sales order with a qty of 20 pcs
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o The system carries out delivery scheduling (backward scheduling) based on the customer’s requested delivery date, and determines the MAD. It then runs an availability check for that date
Figure 4 Case2 Result - Confirmation for a later date
In case of stock shortage, the system uses the availability check and delivery scheduling to determine the next possible date on which the goods can be confirmed for the customer
Due to Complete Delivery the quantities can’t be split up.o 20 PCS has to be confirmed on a later date
Based on the MAD, the system uses delivery scheduling (forward scheduling) to calculate the confirmation date for the 20 PCS
Case 3 – Partial Deliveries
Figure 5 - Case3 Partial Deliveries
If the Customer and Sales Document Type allow it, the required SO qty can also be split into several partial deliveries
The situation in Case 3 is the same as for Cases 1 and 2:
Stock: 100 PCS Existing Purchase Orders with qty 50 and 60 PCS Following future outward movements exist:
o Existing SO’s with qty 100, 40 and 50 PCS
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In Case 3, however, the customer needs the goods as soon as possible and allows us to split the material into several deliveries, if necessary.
In this situation, we now enters a SO with Order qty 20 PCS
The system carries out delivery scheduling (backward scheduling) based on the customer’s requested delivery date and determines the MAD. It then runs an availability check for that date
Figure 6 Result for Case 3
When there is not enough stock, the system uses the availability situation and delivery scheduling to determine the next possible date for which the goods can be confirmed to the customer
The “partial deliveries permitted” agreement means that the quantity can be split up We can confirm the 20 PCS for two later dates, each with 10 PCS
o Using the MAD, the system uses delivery scheduling (forward scheduling) to calculate two partial deliveries, each with 10 PCS
Case 4 - Check with Replenishment Lead Time
Figure 7 Case 4 - Check with Replenishment Lead Time
We can take into account all inward and outward movements. It is however recommended that we only implement an availability check at the end of the replenishment lead time
The replenishment lead time can be specified for each material:o Trading goods: planned delivery time + goods processing timeo Finished goods: in-house production time
The system assumes that the material will be available at the end of the replenishment lead time, at the latest
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Availability Check is only run until the end of the replenishment lead time If we check availability in Case 4 without including replenishment lead time, the result will be
the same as for Case 2. The customer requires a complete delivery. We cannot make 20 PCS available until the same date on which the last purchase order for 60 PCS arrives (Inward Movement)
However, if the system does an availability check using the replenishment lead time, we can confirm 20 units for the requested date
Backorder Processing
Two types of Backorder Processing:o Manual with Backorder Processing
We can use backorder processing to list sales documents for materials and to process them manually with reference to the confirmation. This means that ATP quantities can be reassigned and any shortfall cleared.
o Via Rescheduling We can use the delivery priority (proposed from the customer master record
for the sales order) as a sorting criteria in automatic rescheduling
Transportation Processing
Figure 8 Document Flow with Outgoing Shipment
The Shipment function is optional It can be used to combine deliveries with the same transportation requirements such as,
forwarding agent, destination, route, or means of transport Normally, shipment is created before posting GI The settlement of shipment costs from the shipment is also optional
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Figure 9 Creating Shipments
Using the “Create Shipment” function, the system determines the deliveries due for transportation and creates the shipments required
The individual deliveries can be assigned to the shipments manually. The sequence of the deliveries within a shipment is determined automatically from the sequence in which they are listed
Figure 10 Loading and Packing Shipments
At the time of shipment, items which were not already packed in the delivery can be packed in shipping units using shipping materials. The functionality used here is basically the same as for deliveries. However, items cannot be generated or entered manually for inventory management/billing
Packed items are assigned to the required means of transport (trucks, for example) Shipping units from the delivery are copied and can no longer be changed Unlike packing for deliveries, packing for shipments can be done for multiple deliveries
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Figure 11 Billing the Shipment Costs to Customer
We can invoice the customer for shipment costs, which are based on effective shipment costs, that have been calculated in the transportation and shipment cost processing areas for settlement with the forwarding agent. The freight costs then appear as an additional entry in the customer billing document
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Figure 12 Connection to Financial Accounting
The system transfers billing document data in Invoices, Credit and Debit Memos to financial accounting and posts this to the determined accounts
We can set accounting determination to be dependent on various different criteria in Customizing, such as:
o Chart of accountso Sales Organizationo Account assignment group of the payero Account assignment group of the materialo Account key,
Setting account determination requires agreement from financial accounting and cost accounting, for the reasons mentioned above
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Unit 6 – Sales and Distribution Processes with Make-to-Order Production
Presales Processing
Figure 13 Presales Activities
Figure 14 Presales Documents
Figure 15 Document Flow in the Presales Phase
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Function of the Item Category
Figure 16 Item Categories
Item Categories adds additional control functions for the sales documents An Item Category can for example influence:
o Whether the system runs Automatic Pricingo Whether the item appears on an invoiceo Which fields are recorded in the incompletion log if they were not entered in the SOo Which Partner Functions belong to the itemo Whether the item appears on a deliveryo Whether you can create Schedule Lines for the item
Figure 17 Item Category Determination - Normal Item (NORM)
The Item Category in the Sales Document is found using the Sales Document Type and the Item Category Group from the Material Master (for example)
o Item Category Group is maintained in material master on the Sales:Sales Org. 2 tab page
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Figure 18 Item Category Determination in the Standard Order
Another Item Category than that for a material with item category group 0001 is found for a material with the item category group NORM
Assembly Processing
Make-To-Order Flow
Make to order production is characterized by the fact that materials are not stored in the WH, but produced especially for a certain SO
An individual Customer Requirement is generated from the Sales Order Item and transferred to Materials Planning (PP)
We can use materials planning to plan requirement. Once this has been done, production is carried out. After the products are manufactured, we post it by Goods Receipt to the SO Stock for the particular order item.
As soon as delivery is due, an Outbound Delivery is created, and GI is posted, then we do billing
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Figure 19 Make-To-Order without Assembly Processing
The requirement quantity (Planned Independent requirements), Delivery Date, and ConFigureation Specifications are transferred from the Sales Order to Materials Planning as an Individual Customer Requirement
We then use a Planning Run to generate a Planned Order. Here Bills of Material are exploded and dependent requirements for the assemblies and components are generated
As soon as production starts, we create a production order from the planned order The system returns the confirmed qty and delivery date from the Production Order to the
Sales Order
Figure 20 Make-To-Order Production with Assembly Processing
The individual components for the final product have already been produced for Make-To-Order production with assembly production. You then only need to assemble the components according to the customer’s wishes. This means that we just need a One-level BOM explosion and we do not need to generate dependent requirements
o This means that we do not need a planning run at this point for MTO production with assembly processing. We can create a Production Order directly from the SO
The system returns the confirmed qty and delivery date from the production order to the Schedule Lines in the Sales Order
Any changes made to the Confirmed Schedule Line or the delivery date are immediately visible in the SO and/or in the production order
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Figure 21 Cost Management per Item
In Sales Order Processing, the costs and sales revenue for a sales order item are collected in a controlling object for that item and settled in a profitability analysis
Pricing in the sales order determines the planned sales revenues(net value 2) and the actual sales revenue is posted in the billing document
The planned costs are compared to the revenues. They arise from product or unit costing, or from the valuation price in the material master (Standard Price or Moving Average Price)
The actual costs are calculated from the withdrawal, production orders, internal activity allocation and surcharges
The accrued actual sales revenues and costs are settled in the profitability analysis to determine profit or loss
Figure 22 Packing
During Packing, delivery items can be assigned to packaging materials. The handling units created by this can then be packed in additional packaging materials
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Figure 23 Delivery from Sales Order Stock
After the material has been produced, it is posted as a GR to the sales order stocko Sales order stock is special stock which can be used only for the special sales order
During GI of the Delivery, the sales order stock is reduced accordingly
Figure 24 Assembly Processing with Variant ConFigureation – Example
When the attributes of a material are not predefined and there are many possible variations, we can define them in the sales order or in the context of a variant conFigureation
A conFigureation profile must exist for every conFigureable material. We use it to define specific attributes of the conFigureation
The material is assigned to one or more classes in the conFigureation profile or in the Material Master
Each class contains one or more characteristics which represent the variable attributes of the material
We can define each possible values (characteristics values) for each characteristic We can maintain surcharges/discounts for characteristics values, which affect pricing
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Unit 7 – Complaints Processing
Credit Memo Requests
Overview
Figure 25 Processes in Complaints Processing
We create returns, credit/debit memo request, credit/debit memo, or an invoice correction after we have:
o Created a sales ordero Delivered the goods to the customer and billed for the goods
Create a returns request (authorization) if the customer returns the goods Invoice correction is created if there is a price or qty deviation Returns or credit/debit memo can be created with reference to a SO or Billing Doc. Invoice correction request or credit/debit memo (without credit/debit memo request) is
created with reference to the billing document For returns, credit/debit memo request or invoice correction request, billing takes place after
checking and approval, by creating a credit/debit memo
Processing
Figure 26 Processing Credit and Debit Memos
Credit/debit memo requests can be created with reference to a billing document or a SO, in order to automatically determine the correct amount for the preceding document
Order Reason needs to be entered for evaluation purposes Credit/debit memo request contains a billing block in order to prevent immediate billing
o It is approved by removing billing block
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Return, credit memo request, debit memo request and invoice correction request documents contains a billing block
o Unjustified complaints are rejected and the reason for the rejection is entered against the item(s) in question
Rejected items are not copied to the billing documents, however they are still available for evaluation purposes
Returns
Figure 27 Returns Processing
Returns can be created with reference to a billing document or a SO, since copying control then transfers all required information from the preceding documents
Order reason to be entered for evaluation purposes Billing block used for approvals Goods Receipts is posted for damaged/defective goods upon arrival in a returns delivery.
o GR usually posted to a separate returns stock and not to unrestricted-use stocko Posting can be made before or after credit memo has been created
Once billing block is removed, credit memo and the required accounting documents are generated as a result of the billing process
o The correct amount is automatically credited to the customer account This step can be carried out independently of the creation of the inbound
delivery of the damaged/defective goods
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Invoice Correction Requests
Invoice correction is used to correct qty or value for which the customer already has been billed
Invoice correction is always created with reference to the incorrect billing document The customer will receive a document containing following:
o The qty and price that were originally calculatedo The correct qty and priceo Amount credited/debited to/from the customer account
In the invoice correction request, a credit/debit memo is generated for each item on the incorrect billing document
o When processing begins, the net value is therefore zero Changes can only be made to the debit memo items
o Net values to be credited are derived from the differences between the credit and debit items
Credit/debit items are always deleted in pairs, non-changed item pairs can be deleted
Cancelling a Billing Document
A billing document may have to be cancelled, for example, if the payment terms or address of the payer have changed
In this case, a separate billing document (cancellation billing document) is created along with a new accounting document, this revises all previous postings by reposting each item with the opposite symbol
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Advanced Returns Management (EHP4)Pages 316 - 320
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Unit 8 – Analyses for Sales and Distribution Processes
Lists and Reports
overview
o The Sales Information System (SIS) belongs to Sales and Distribution. With SIS we can compress data from SD documents to obtain information for making strategic business decisions. SIS consists of both standard analyses as well as flexible analyses for evaluation of statistical data.
o SAP provides list functions to create worklists in sales, delivery, picking and billingo The Logistics Information Library allows us to integrate standard and flexible analyses as well
as our own reportso LIL can be structured and enhanced according to our needso In case standard reports do not fulfill our needs, SAP queries can be used to extract
information from the database into a report
Lists
Worklists: Billing due list and Delivery due list
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Unit 9 – Company Structures – Customizing
Enterprise Structures in Sales and Distribution
Objectives Achieve flexibility in modeling and representing complex corporate structures Adapt to changes in corporate structure Distinguish between views in logistics (Sales and Distribution, Purchasing, etc.), cost
accounting and financial accounting Process data across company codes
Integration of sales in Financial Accounting All organizational units within a client are subject to one business control. A client can thus
be seen as a synonym for the group A client is a self-contained technical unit. General data and tables that are used for multiple
organizational structures are stored at this level We can use the company code and business area to represent a group from a financial
accounting perspective We can create multiple company codes in one client in order to carry out financial
accounting for several independent companies simultaneously Each company code represents an independent accounting unit. Several company codes can
use the same chart of accounts A business area is a separate business unit for which cross-company code internal reporting
can be carried out. Business areas are not limited by company codes. For this reason, the business areas in all company codes must have the same description. Usage of this organizational unit is optional
We use business areas if we want to calculate profit and loss statements independently of the company code. In the case of postings made from sales and distribution, the business area can be derived automatically
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Organizational Structures in Sales
OverviewA variety of organizational units are at our disposal for modeling sales business transactions. In the sales area, the following organizational units can be defined and used for mapping and building up the sales structures:
Sales Organization Distribution Channel Division Sales Area Sales Office Sales Group
Other organizational units in sales includes (but are not limited to) shipping point and transportation planning point
Sales Organization A sales organization represents the organizational structures in sales and distribution. Each sales organization represents a selling unit as a legal entity.
o It is, for example, responsible for product liability and other customer rights of recourse.
We can use sales organizations to subdivide markets into regions. Each business transaction is processed within a sales organization A sales organization is assigned to exactly one company code A sales organization is assigned to one or more plants Each sales organization has its own master data
Distribution Channel Distribution Channels provide a general structure for distributing goods Examples
o End Customero Wholesale trade
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o Sales to industrial customerso Direct sales from plant
Master data – such as customer master data, material master data, prices, and surcharges/discounts – can be varied depending on distribution channel
Division Product ranges can be divided into divisions Division-specific sales structure can be defined in SAP Examples
o Carso Motorcycleso Hi-Tech
Material is division specific and cannot be shared between other divisions since it is a field in master data
Within a division we can make customer-specific agreements, for example regarding partial deliveries or pricing
Sales Area Sales Area is a combination of:
o Sales Organizationo Distribution Channelo Division
Sales documents, delivery documents, and billing documents are always assigned to a sales area and every sales process takes place in one sales area
The relevant master data can usually be maintained explicitly for each sales area, for example:
o Sales relevant customer master datao Sales relevant material master datao Conditions (prices, surcharges/discounts)
Analyses can be carried out within a sales area
Sales Office Sales Offices define geographical aspects of the organizational structures in business
development and sales. A sales office can be viewed as an actual office or perhaps a territory or region. Sales Offices can be assigned to multiple sales areas.
Sales Groups Employees of a sales office can be assigned to sales groups assigned for each division or
distribution channel. Sales groups are assigned to sales offices
Salesperson A sales group consists of a certain number of salespersons. A salesperson is assigned to a
sales office and a sales group in the sales employee master record. Thereafter, we can select this personnel master record in the partner screen of a sales document
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Plant Materials management is mostly about the flow of materials within a company. Production
facilities and locations for storing of stock must therefore be defined in the system. The terms used in the system for above are Plant and storage location, respectively. A plant can either be a location for production and MRP or it may simply be one or more
stock locations close to each other. Each plant is uniquely assigned to a company code For a plant to deliver goods properly, it needs to be set up as a delivering plant in sales
customization. During sales process, the delivering plants are first used to verify the stock, and later to
supply the goods the customer has ordered. Delivering plants must be assigned to a Sales organization and a Distribution channel
(Distribution Chain) in Customizing It is possible for a plant in a distribution chain to belong to another company code than the
sales organization. This is known as Cross-Company Sales
Unit 10 – Sales Order Processing
Information Sources and Data Transfer
Overview – Sources for Document Data
During input for sales documents, the system uses above sources of information for default data and fixed reference data
Each sales order is assigned to a unique sales area. When entering a sales order, we don’t necessarily need to enter the sales area immediately. Instead we can let the system derive the sales area from the Sold-to party.
o If there are master data for the sold-to party in multiple sales areas, there will be a selection screen appearing where we can choose the required sales area.
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Business Partners from the Customer Master The essential business partners for a sales transaction are:
o Sold-to partyo Ship-to partyo Payero Bill-to party
Above partners play each a specific role in the business process. (partner functions) We can maintain customer master data for each of above partner functions If we don’t enter a sold-to party in the sales document, the system can automatically
determine one for us from the ship-to party.o If there is exactly one sold-to party for the ship-to party, the system does this
automatically.o If there are several possible sold-to parties for the ship-to party, the system displays
a selection screen with the possible alternativeso If a sold-to party can’t be determined, an error message will be displayed in the
status baro A message also appears if we entered a ship-to party in the sold-to party field
inadvertently. The system continues the processing as if we entered a ship-to party in the ship-to party field
Proposing Order Data from the Customer Master The master data in the sales document is taken from the master records for the partner
functionso Delivery address and control information is taken from the ship-to partyo Payer is responsible for payment, and thus, payment conditions are taken from the
payer master recordo Bill-to party contains the address to which the invoice should be sent
This address might differ from the payers address
Business Data We can define business data (such as payment conditions, INCO-terms) at document header
level or for each item. We can decide in Customizing for the Item category whether business data at item level
should be able to differ from business data at header level.o This option is configured separately for each item category.o This allows us to create sales documents containing both items in which business
data must be identical to the sales document header and items that allows different business data.
Proposing Plants Automatically The Plant is an integral part of Logistics. It assumes the role of Delivering Plant in sales. When entering an item to be delivered, the system attempts to determine a plant
automatically from the master data. If the search is successful, the results are copied to the document item. We can change the delivering plant manually.
During the search these master records are checked (in order):o Check if plant can be proposed from customer material info record
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o Check customer master recordo Check material master record
If there isn’t a plant defined in the material master record, no plant can be determined. And if a plant can’t be determined, no other document data can be determined either.
o For example, it would not be possible to automatically determine shipping point. Furthermore, no availability checks are possible, and no delivery can be created.
A USER EXIT can be used for enhancing the determination of plants.
Selected Entry Aids and Techniques
Sales Summary The sales summary helps to create documents by displaying a variety of relevant information
about the customer. This information is available using a pushbutton at any time during document processing.
The information in the sales summary is grouped into info blocks on various topics. We can configure the info block views according to topic ourselves in Customizing.
Changing of Sales Documents There are two options available for changing document data:
o Fast Change Function allows us to change several – or all – items of a document at the same time.
o Changing Several Documents can be done using the document list. Changeable items can be: plant, currency, materials, and pricing. The mass change tool supports comprehensive changes to the selected sales documents.
Blocks In sales orders, we can block the following transactions:
o For Shippingo For Billing
Billing block and delivery block can be set at either header or item level.o Delivery blocks can be customized in their behavior.
Rejection Reason for rejection can be set for one or several items. We can create a suitable copying
requirement in copying control in order to prevent these items from being copied into subsequent documents.
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Changes to the Sold-to Party in the Sales Document
Sometimes it might be suitable to enter items before Sold-to Party in a sales document, for example when taking an order via telephone
o Since a Sold-to Party is always required when creating a sales order, a default value must be present in order to save the document. We can do this either via user-specific parameters, or – depending on the sales document – with a transaction variant.
o The incompletion log of the sales document ensures that the person responsible replaces the default customer value with the actual Sold-to Party.
To do this, the Default Sold-to Party must be flagged as such in the customer master (activate customer type Default SP).
o When the Sold-to Party is changed, the checks are run again, and as a result a variety of data is re-determined (see picture above).
o We can also change the Ship-to Party later on in the overview screen. However, the system does not re-determine the Sold-to Party in that case.
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Unit 11 – Controlling Sales Documents
Basic Principles of Business Process Control
Overview Sales Processes are controlled by Customizing for sales documents Customizing for sales documents can be done at header, item, or schedule line level. All
depending on the structure of the document.o The instruments for control are:
Sales Document Type Item Category Schedule line category
We need to make settings in Customizing to ensure that the item category and schedule line category are determined automatically in the sales document.
To fully set up a business process in our system, we need to configure the system for forwarding data from preceeding document to subsequent according to our business needs. This can be done via copying control.
Basic Functions
The sales document is not completely configured until we have processed all the necessary basic functions.
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Sales Document Types
Appendices
A Availability Check – Taken from the book “Sales and Distribution in SAP ERP – Practical Guide”
Figure 28 Availability Check Settings in Material Master
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Figure 29 Availability Check Control - ConFigureation Settings
Anytime we are creating a sales order and are using materials where we can run into a potential stock shortage situation, we are making SD requirements visible to procurement. This transfer of requirements can influence the availability check because our materials could potentially be provided by an internal production facility or external supplier. This could mean a seven-day delivery from the vendor.
Figure 30 Requirements Transfer Mechanism
The other factors that have impacts on availability check results include loading time, transportation planning time (route stage duration), GR processing time, picking time and packing time, et cetera.
Taking all this into account, the system must first carry out backward scheduling to establish the MAD. The formula for this is: Availability Date = Requested Delivery Date – Transportation Processing – Loading Time – Picking and Packing Time
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On the determined date, an availability check using ATP logic is carried out, where:ATP qty = [Total WHSE stock Qty + Planned Goods Receipts Qty’s(incoming stock)] – Planned Issues Qty’s (outgoing stock)
To illustrate, let’s imagine a scenario where a material is not being fully available. During order entry, the system proposes a new date for complete delivery, (which we don’t accept) and selects a partial delivery of what was available on hand at that time. Two Schedule lines will now be created.
To simulate the results we can use transaction CO09 – Availability Overview
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