B1B- Sales Order Processing_ETO

My SAP ERP 2005 IMC Dash

B1B
Sales Order processing ETO
Business Process Procedure

SAP Channel Partner

KPIT Cummins Infosystems Ltd
Hinjawadi, Pune

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Process Flow Legend

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Contents / Index

1. Purpose.......................................................................................................4
2. Prerequisite.................................................................................................5
Master Data ................................................................................................5
Required Primary Steps.................................................................................5
3. Process Steps...............................................................................................6
Process Flow Diagram....................................................................................6
Process Overview Table.................................................................................7
4. Scenario:.....................................................................................................8
B1B.10 Creation of sales order.......................................................................8
B1B.20 Check Credit.....................................................................................9
B1B.30 ETO Project Manufacturing ...............................................................10
B1B.40 Determine Network and Project Number for Sales Order.......................10
B1B.50 Confirm Project milestone.................................................................10
B1B.60 Create Billing...................................................................................10
B1B.70 Incoming Payment...........................................................................11

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1. Purpose
This scenario describes the process sequence for an Engineer-to-Order sales process
with a customer. The business process encompasses all steps from creating an order
to the clearing of a customer account after payment is received. The process starts
with the creation of a customer's standard sales order, and the autocreation of a
project and network. Engineering to Order (ETO) requires precise planning of the
many detailed activities involved. A clear project structure is the basis for successful
project planning, monitoring and control. This scenario describes an agreement with
a customer for a design project that requires a down payment and billing based on
performance of defined milestones. A project structure is created which triggers the
procurement of materials, manufacturing requirements, invoicing plans, and
determines the confirmation date to the customer. The project is structured by work
breakdown structures (WBS), and network activities. Once the project has been
released, results analysis can be performed at each milestone to show planned costs
and revenues, and accrue for periodic reserves. Both the project and associated
sales orders result in financial and management account postings either through
execution or billing and/or period end. 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.

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2. Prerequisite

Master Data
 Customer master data
 Material Master data
 G/L master

Required Primary Steps

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3. Process Steps
Process Flow Diagram

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Process Overview Table

Step Step Name External Business Role Transac Expected

Process Condition tion Results
Reference Code
1 Create the Create sales order Sales Officer VA01 Sales order
sales order created
2 Check Credit Check credit in Credit VA01 Credit is checked
the sales order Manager for the sales order
3 ETO project Refer to A1H –
Manufacturing Engineer to order
– Project
manufacturing
4 Determine Project VA02 Refer to A1H –
Network and Manager Engineer to order
project – Project
Number for manufacturing
sales order
5 Confirm Project Project CJ20N Refer to A1H –
Milestone Manager Engineer to order
– Project
manufacturing
6 Billing Create invoice for Commercial VF01 Billing Document
outgoing Goods Manager is created
7 Incoming Incoming Accounts F-28 Payment is
Payment payment Receivable received

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4. Scenario:
B1B.10 Create sales order
Use
After the customer gives a confirmation about purchase of
goods / material. The confirmation of purchase of goods could be
either through a purchase order / email/ telephone, etc.

Prerequisite
 Customer Master data
 Material Master data

Procedure

Easy Access Path Logistics > Sales and distribution > Sales >
Order > Create
Transaction Code VA01
Business Role Sales Officer

On the initial screen enter following details

Field name Value

Order Type <ZE21> Material sales
Sales Organization <1200>
Distribution Channel <10>
Division <10>

On Create Sales Order Initial Screen, make following entries

Field Description User action and Comment

name values
Sold To Customer < Customer code
Party >
Ship To <> If shipment to
Party another
customer
PO Number Purchase Order
number of
Customer
PO Data Purchase Order
date of
customer
Required Required delivery
Delivery date by customer
Date
Material Finished
Number Product code
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Quantity Required
Quantity of
Finished Material

Enter

System shows information message for Credit availability check.

Enter

Select the Item row and click on schedule lines to

check whether the material will be available on the required date. Or,
select Item & go to Menu Bar Goto > Item > Schedule Lines.
Select the Item row and click on Item Conditions to put Price for
material in Sales Order or Select Item & go to Menu Bar Goto > Item
> Conditions.

Update Price with condition ZPR1.

Check in for Incompletion Log by going in Menu Bar Edit >

Incompletion Logs. “Document is complete” message is displayed.

Save .

Result
Sales Order is saved.

B1B.20 Credit Check

Use
The sales order is created. The next activity is to check the credit for
the particular customer.

Prerequisite
 Sales order is created

Procedure
There will be an informative screen which will indicate that the credit
limit is exceeding.

Enter.

Save .

Result

Sales Order is saved.

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B1B.30 ETO Project Manufacturing
Use
The entire project and the manufacturing related activities are
performed here.

Refer to A1H – Engineer to order – Project manufacturing scenario.

B1B.40 Determine Network and project number for sales order

Use
In this activity, the network number for the sales order is determined.
Prerequisite

Procedure

Easy Access Path Logistics  Sales and Distribution  Sales 

Order  Change
Transaction Code VA02
Business Role Project Manager

Select the line item and choose the schedule line button. Choose the
network button and note the network number.
Choose the assignment tab for the project definition number.

Result
The network number and project definition number have been
determined.

B1B.50 Confirm project milestone

Use

In this activity, the project milestone is confirmed.

Refer to A1H.90 – Engineer to order – Project manufacturing –Confirm

Project Milestone scenario.

B1B.60 Create Billing Document

Use
The invoice will be generated for the project work. The invoice is
created for the work done.

Prerequisite
 Project work.

Procedure
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Easy Access Path Logistics > Sales and distribution > Billing >
Billing Document > Create
Transaction Code VF01
Business Role Accounts manager/ Commercial Manager

On the initial screen enter following details

Field name Value

Document < Delivery Document Number >

Click on Enter.

Check in for Incompletion Log by going in Menu Bar Edit > Log. “No
error log created” message is displayed.

Save .

Result
Billing Document is saved..

B1B.70 Incoming Payment

Use
This activity posts the Incoming Payment from the Customer.

Prerequisite
Customer Master & GL Master is required.
Sales order creation, Delivery & Billing has to be completed.

Procedure
Easy Access Path Accounting > Financial Accounting > Accounts
Receivable > Document Entry > Incoming
Payments
Transaction Code F-28
Business Role Accounts Payable Clerk
Enter basic data & select the appropriate Invoice line item against it
you wanted receive a payment. Then simulate & Post.

The following entry will be passed at the time of Outgoing payment:

Debit Bank A/c
Credit Customer A/c

Result
Receipt of Incoming Payment from Customer.

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