Sales Order Processing

<Site>

Right Solution, Right Time, Right Price

Agenda
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.

General Information for Sales Order Processing

Sales Inquiry
Quotations
Sales Orders
Inventory/Availability Reporting
Consignment Orders
Reports/Lists
Complaints Processing
Pro-Forma Invoice Creation
Questions / Review

I. General Information
for Sales Order
Processing

Organizational Elements Quick Review

Sales Area
<Client> Sales
Organization

SALES
ORGANIZATION

(0010 <Client> Americas)

Direct
Distribution
Channel

Distributor
Distribution
Channel

(01)

(02)

Drives

General
Motion

Machine
Tool

<Client>
Semiconductor
Group (YSG)

(01)

(02)

(03)

(04)

PARTS SALES
PARTS SALES
SERVICE ORDER SERVICE ORDER
REPAIR ORDER
REPAIR ORDER

Service
House
Accounts
(05)

DISTRIBUTION
CHANNEL

Columbus

Switch

(06)

(07)

DIVISION

SPECIAL REPORT
PARTS SALES
PARTS SALES
PARTS SALES
PARTS SALES
PARTS SALES
TOTAL PARTS SALES
SERVICE ORDER SERVICE ORDER SERVICE ORDER SERVICE ORDER SERVICE ORDER TOTAL SERVICE ORDERS
REPAIR ORDER
REPAIR ORDER
REPAIR ORDER
REPAIR ORDER
REPAIR ORDER TOTAL REPAIR ORDERS

I. General Information for Sales Order Processing

Business Processes Cycle

Sales
Sales Order
Order Processing
Processing
Inventory
Inventory Sourcing
Sourcing

Pre-Sales
Quotation Activities

Invoice

Delivery
Delivery

Payment
Payment
Billing
Billing

I. General Information for Sales Order Processing

Basic Functions Within Sales Order Processing

During sales order processing, the system carries out basic
functions, such as:

Determines Pricing
Decides Delivery Requirements
Decides Requirements for creating invoices
Updates Document Flow
Updates Sales reporting
Carries out availability check

I. General Information for Sales Order Processing

Sales Documents

I. General Information for Sales Order Processing

Sales Documents
There are four distinct groups of sales documents:

Pre-Sales Activity: Inquiries, and Quotations

Sales orders
Complaints, encompassing Subsequent Delivery Free of Charge order,
Credit /Debit memo requests and Return Orders.

I. General Information for Sales Order Processing

Sales Documents
There are three distinct control elements within a sales documents:

Order type controls:

Number range for the order

Incompletion procedure at the header
Output determination procedure
Item number increment
Document pricing procedure

Item category controls:

Should pricing be carried out

Is item to be invoiced
Which fields appear on the incompletion log
Partner determination

Schedule item category controls:

The correct A/R account cost will hit
Especially important in internal order processing

I. General Information for Sales Order Processing

Sales Documents
From the sales document, you can create and process
deliveries and billing documents.
In addition, some sales documents, such as rush orders,
automatically trigger the creation of delivery documents.

I. General Information for Sales Order Processing

How Sales Documents are Structured

Sales Document
All sales documents have basically the
same structure.
They are made up of:
Header

Line Item
Schedule Line

Header
Item 1
Schedule line 1

Item 2
Schedule line 1
Schedule line 1
Schedule line 1

I. General Information for Sales Order Processing

Header data
The general data that is valid for the entire
document is recorded in the document
header.
For example,

Sales Document
Header
Sold-to party: 1000006
Ship-to party: 1000006
Currency:

Number of the sold-to, ship-to party

Purchase Order
Sales Area Data
Payment Terms
Pricing elements for the entire document
Order Status
Industry
(add. data Acustomer group 1)
Application
(add. data Acustomer group 2)

Req. Delivery Date: 7/28/00

USD

Item 1
Schedule line 1

Item 2
Schedule line 1
Schedule line 1
Schedule line 1

I. General Information for Sales Order Processing

Item data
Whereas data in the document header applies to all
items in the document, some data applies only to
specific items or can be overridden by the item.
This data is stored at item level and includes the
following:

Material number and data

First delivery date
Reason for rejection
Partner determination (an alternative ship-to
party or forwarding agent (carrier) can be
defined for a particular item)

Item level text

Item level status
Plant and storage location specifications
Pricing conditions for the individual items
Item Category

Sales Document
Header
Item 1

Item 2

I. General Information for Sales Order Processing

Schedule line data
The schedule line contains all the data that is needed for
a delivery.
For example, a customer orders 20 units of a particular
material which you enter as one item in the sales order.
However, you can only deliver 10 pieces now and the
remaining 10 pieces next month so you will confirm two
delivery dates. The data for these deliveries (dates,
confirmed quantities) are stored in two separate schedule
lines. (Automatic line splits)

In sales documents where delivery data is not relevant,

for example, contracts, credit and debit memo requests,
the system does not create any schedule lines.
Data recorded in the schedule lines includes the:
Schedule line quantity
Delivery date
Confirmed quantity

Sales Document
Header
Item 1
Schedule line 1

Item 2
Schedule line 1
Schedule line 1
Schedule line 1

I. General Information for Sales Order Processing

Data From Master Records
When you create a sales document without referring to a preceding
document, the system copies the following data from the master
records:
Data about the sold-to party and
other partners from the customer
master records
Item data from the material
master record
Data from any relevant customermaterial information records
(customer specific part numbers)

I. General Information for Sales Order Processing

Data from Preceding Documents
If you create a sales document with reference to a preceding document, the
system copies nearly all the data from the preceding document, depending on
copy control setup for document combinations being referenced.
The data in the preceding document originally comes from the customer and
material master records.
Because the data is copied from the preceding documents into the sales
document, any changes that have been made to the master data records since the
preceding document was created are not included in the sales document.
If, when you create with reference, you add another item to the document that
was not in the preceding document, the system determines the data for the new
item from the master records, such as the material master or info record.

I. General Information for Sales Order Processing

What is the difference between an Inquiry and a Quotation?
Inquiry Non-Binding Agreement
For example, a customer inquires whether we have a certain product in our
warehouse, how much it will cost, or whether the product will be available for a
certain date. The inquiry will not be sent to the customer.

Quotation Binding Agreement from <Client>

A quotation presents the customer with a legally binding offer for product or service
within certain fixed conditions.

I. General Information for Sales Order Processing

Reporting and Analysis in SAP R/3

Standard Reporting
Lists documents and master data
Provides analysis through sorting and totals
Displays details

List Processing
Lists selected documents
Allows you to branch to documents and return to list
Helps organize work

Sales and
Distribution
Sales Document Icons

These Icons appear on most

Sales Documents

General Icons
Status Overview

Display Item Detail

Display Sales
Summary

Create Item

Reject Document

List Sales Orders

New Session

Delete Item

View
Availability

Item to top

Item
Conditions

Display Sold-to Party

Header Output View

Page Down

Display Document Flow

Check Item Availability

Sales Order Processing

What 3 organizational elements make up the Sales
Area?
Name the 2 distribution channels?
Name the 7 different division?
Name 2 things order type controls?

II. Sales Inquiries

II. Sales Inquiries

Inquiry
Used to store pre-sales data.
There are a wide range of functions defined for
managing and monitoring these documents.
Information gained from these documents can be used
to gauge different market, sales, inventory trends.
Each document has a validity date.

Creating a Sales Inquiry

Menu Path
Logistics >>
Sales and Distribution >>
Sales >>
Inquiry >>

VA11 - Create
Transaction Code:
VA11

a.

Step 1 Initial Screen

a.

Enter IN for Inquiry Type

b.

Step 1 Initial Screen

a.

Enter IN for Inquiry Type

b.

Click on the Enter button.

a.

Step 2 Completing the

Inquiry
a.

Enter the Customer Code for the

Sold-to party. You can also use
the Matchcode button to search
from a list.

b.

Step 2 Completing the

Inquiry
a.
b.

Enter Sold-to Party

Ship-to Party will default in from
the customer master. If there are
multiple ship to partners attached
to a sold to you will get a selection
box.

Step 2 Completing the

Inquiry

c.

a.
b.

Enter Sold-to party.

Enter the Ship-to Party

c.

Enter the Requested Delivery

Date and the validity dates.

Step 2 Completing the

Inquiry

d.

d.

a.

Enter Sold-to party.

b.

Enter the Ship-to Party

c.

Enter the Requested Delivery Date

and the validity dates.

d.

Enter Material Numbers or

select from a list by using a
matchcode search. Enter the
requested order quantity.

Schedule Lines w/inventory

Full quantity is available for
customers request date.

Schedule Lines w/partial

availability:
75 in stock
75 coming in 8/16
100 coming in 8/23

III. Sales Quotations

II. Sales Inquiries

Quotation
Used to store pre-sales data.
There are a wide range of functions defined for managing
and monitoring these documents.
Information gained from these documents can be used to
gauge different market, sales, inventory trends.
Each document has a validity date.
A Textual description can be used instead of the material #.
A quote is a legally binding declaration to the customer
containing material specifications, prices and terms of
delivery/sales.

Step 1 Initial Screen

a.

Enter Quotation Type

QT = Sales Quotation
AS = Service Quotation

Override Application or
Industry:
a.

Menu Path: Go-to Header

To change the industry or
application for special projects
that deviate from the customer
master default.

Inquiries and Quotations

Facilitator Demonstration/Review
1. Creating an Inquiry
2. Creating a Quotation
a. With Reference to Inquiry
b. Without Reference to Inquiry

IV. Sales Orders

Sales and Distribution

Sales Order Types
Code

Order Type

Code

Order Type

Override Freight Forwarder

(Carrier) by line item:
a.

Menu Path: Go-to Item Partners

Select the match code on the
forwarding agent partner no.
field. Use Account group Z015
(shipping/freight).

Sales Order Processing

Name the 2 distribution channels?
Name the 7 different division?
Name 2 things order type controls?
Where do you change the freight carrier?
Where does the application and industry default from
and how do you change?
What is the SAP term for Item Master?

Sales Order Processing

What 3 organizational elements make up the Sales
Area?
What is the condition type for Material Price?
What is the condition type to override Material
Price?
Name 2 things order type controls?
Where do you change the freight carrier?
What is the search criteria you will use to find the
forwarding agent (freight carrier)?
Where does the application and industry default from
and how do you change?

V. Inventory and Availability Reporting

Inventory and Availability

Availability Check
Inward movement
of goods
Purchase
Order

Production
Order

Stock

Delivery

Outward movement
of goods

Sales
Order

Other factors to
take into account:
Safety stock
Stock transport orders
Replenishment lead time

Firm
Planned
Order

Reservation

Inventory and Availability

SD Available to Promise Capabilities

Inward Movements

Stock
Stock
on
on
Hand
Hand

Replenishment

Open
Open
Purchase
Purchase
Orders
Orders

Delivery
Delivery

Outward Movements

Open
Open
Production
Production
Orders
Orders

Sales
Sales
Orders
Orders

Stock
Stock
inin
Transit
Transit

Firm
Firm
Planned
Planned
Orders
Orders

Reserved
Reserved
Invent.
Invent.

Time Fence /
Lead-time

Stock Overview
Stock Requirements List
Availability Overview
Warehouse Stock

Availability Overview: Displays

the availability situation for a
particular material and plant

combination.
Transaction Code CO09 or
Icon from within sales order Enter Plant 1W
Enter Checking rule A
Check the W/Reqmts Quants Box

Stock Overview :
Transaction Code - MMBE
Displays all stock (&stock
types) of a material over all
organizational levels.

Stock Requirements List:

Transaction Code MD04
Displays open incoming
orders (planned orders,
production orders, purchase
orders)

and outgoing
requirements (sales orders,
deliveries, reservations,
purchase orders)
Forecast VSF is consumed
by sales documents. ATP
does not consider VSF.

Warehouse Stock:
Transaction Code MB52

Business Process Flow in SAP

Order

Delivery

Invoice

Payment

Document
Document flow
flow of
of any
any sales
sales document
document
Order
Order 900
900
.. Delivery
Delivery 80000459
80000459
.. .. Picking
Picking request
request 17951109
17951109
.. .. GD
GD goods
goods issue:
issue: delvy
delvy 49001828
49001828
.. .. Invoice
Invoice 90000333
90000333
.. .. .. Accounting
Accounting document
document 100000276
100000276

Sales documents represent transactions in the system.

They form a chain of related documents.

The entire chain of documents creates the document flow.

The system copies data from one document into another to reduce
data entry and make problem resolution easier.

If you enter an order for the

same customer/material
combination you will get a
notification.

Select List

Sales Order Processing

What 3 organizational elements make up the Sales Area?
Where do you change the freight carrier?
What is the search criteria you will use to find the forwarding
agent (freight carrier)?
What is Document Flow?

VI. Consignment Orders

Consignment Orders
Consignment Orders
Consignment goods are goods which are stored at the customer location but which
are owned by <Client>. The customer is not obliged to pay for these goods until
they remove them from consignment stock.
In inventory management, the consignment stock is managed as special stock in
your inventory and is assigned to specific customers. Availability check is not
carried out on consignment inventory

Consignment Orders
Consignment Fill Up Order Type KB
Consignment fill up is used to supplement or create the customers
consignment stock.
When you ship consignment stock to the customer, you process the
transaction by creating a consignment fill-up order.
The relevant quantity is removed from regular inventory in your
plant and is added to special stock for the customer.
The transaction is not relevant for pricing since the consignment
stock remains the property of <Client>.
Sales
Consignment
Fill-Up

Sales
Delivery

WM
Goods Issue
(Increased Stk)

Customer
Consignme
nt Stock
Created

Create Consignment Fill-up

Order Type KB

Go to your Stock Overview

report to view the
inventory movements.
Transaction Code: MMBE

After Product is shipped, the

inventory will be moved
to Customer Consignment
Stock.

Consignment Orders
Consignment Issue Order Type KE
Consignment issue enables the customer to take the consignment
goods from the special stock for their use or to sell.
When the customer removes consignment stock to use or sell, you
record the transaction in the system by creating a consignment issue
order.
When the goods issue is posted by Sales, the relevant quantity is
deducted from both the customers special stock and your own total
valuated stock.
The transaction is now relevant for pricing since the goods now
become
of the customer.
Sales
Sales
Sales the property
Consignment
Issue
W/ref to fill-up

Delivery

Goods Issue
(Decreases Stk)

Billing
Document

Consignment Orders
Consignment Returns Order Type KR
Consignment Return is used only if you need to reverse a
consignment issue.
The relevant quantity is returned to consignment inventory.
The transaction is relevant for pricing since the customer was
already billed for this. A credit memo will be created.

Sales
Consignment
Returns
W/ref to Issue

Sales
Delivery

Sales
Goods Issue
(Increase Stk)

Sales
Credit
Memo

Consignment Orders
Consignment Pick-Up Order Type KA
Any consignment goods stored at the customers warehouse that
havent been used can be returned to <Client>s warehouse with a
consignment pick-up.
If the customer returns consignment stock to you, you record the
transaction in SAP by creating a consignment pick-up order, similar
to a return order. When the goods issue is posted, the relevant
quantity is deducted from the customers special stock and is added
back into your regular stock. Your total valuated stock remains the
same since the returned stock was regarded as <Client> inventory
while it was at the customers premises.
WMrelevant for billing.
WM
Sales
The
transaction is not
Consignment
Pick-Up

Delivery

Goods Issue
(Decreases Stk)

Customer
Consignme
nt Stock
depleted

Document Flow:
Menu Path
Environment Display Document Flow

Icon

Sales Order Processing

What does a consignment issue order type do?
Is a consignment fill-up order relevant for billing?
Is a consignment return relevant for billing?
What is the search criteria you will use to find the forwarding
agent (freight carrier)?
What is Document Flow?
What 3 organizational elements make up the Sales Area?
TIP: Ctrl

C and Ctrl Y

Sales Order Processing

What does a consignment issue order type do?
Is a consignment fill-up order relevant for billing?
Is a consignment return relevant for billing?
What is the search criteria you will use to find the forwarding
agent (freight carrier)?
What is Document Flow?

VII. Order Reporting

I. General Information for Sales Order Processing

Reporting and Analysis in SAP R/3

Standard Reporting
Lists documents and master data
Provides analysis through sorting and totals
Displays details

List Processing
Lists selected documents
Allows you to branch to documents and return to list
Helps organize work

ZVCSO customer or
sales report can be run by:
Sales Group
Sales Employee
Distribution Channel
Material
Sold-to
Many others

The report can also be

dumped into Excel to
sort and modify to
give to customers or
the outside sales force

To do so select:

List Save File

Select Spreadsheet as
the format to be saved

Name the file and note

the file name path

Open Excell and

find your file

You may have to

search for all files

A Clip of ZVSCO in Excell

ZVISO Is an Internal
Order report similar to
ZVCSO that contains
additional information
and is run the same way

VA05 Report run in SAP by:

Sold-to
Material
PO #
Open orders
Both open and closed orders
Your Orders

VA05 lists sales orders

per your selection
criteria
Additional fields can
also be utilized

Hidden fields can be selected

Brought over to displayed fields
And copied into the report

Documents can be referenced just

by double clicking the SD doc #

This takes you into the

document itself to
update or view

VIII. Complaints Processing

Complaints Processing
Return Order RE Product being return from customer
Credit Memo Request CR Credit being issued without product
being returned.

Debit Memo Request DR Debit being given to customer.

The request is automatically placed on billing block pending
verification. If the credit is justified the billing block is removed by
sales supervisor and a credit or debit memo is created.
Order Reason is required to help with the justification process.
Additional details can be entered in the header comments text.

Subsequent Delivery Free of Charge SD Short shipment

Credit and Debit Memos

Credit Memos
Invoice

Credit memo
request

Credit memo
Invoice

Sales
Order

Debit Memos

Billing
Billing block
block

Invoice

Debit memo
request
Sales
Order

Debit memo
Invoice

Complaints Processing
Credit/Debit memo request Order Type CR/DR
Billing Block (release request)
Billing Due List (Credit/Debit Memo creation)

Credit Memo Request with

Reference to Invoice:
a.
b.

Enter Billing Doc

Click Selection List to select
item and quantity.

Credit Memo Request with

Reference to Invoice:
c.
d.

Select the items and quantity

Hit copy button

Credit Memo Request with

Reference to Invoice:
e.
f.

Order reason
Billing block will default

Credit Memo Request with

Reference to Invoice:
g.

PN00 (price override) the

amount of the credit you want
to issue.

How Are Returns Processed?

Invoice

Return
request
(authorization)

Returns
delivery

Credit memo

Sales
Order

Order reason
required to create
Return Order

Accept returned
goods (Post
goods issue)

Place in restricted
stock

Credit memo
created after
removing the
billing block.

Invoice

Billing
Billing block
block

Complaints Processing
Return Order Request Order Type RE
Return Delivery (accept return)
Billing Block (release return request)
Billing Due List (Credit Memo creation)

Note: Return Order Freight

Creating a return order and want credit freight back to the customer

the freight needs to be added at order entry. When you create an return order with reference to a prior invoice, freight that was
charged on the original invoice will be copied into the return order and go all the way through billing. Or, when you create a return
order without reference to a prior invoice, you are able to enter freight as a line item on the order and process all the way through
billing.

IX. Pro-Forma Invoice Creation

Creating a Billing Document

Pro-Forma Invoice
Invoices will typically be created using the Billing Due List which
creates invoices in bulk that are due for billing.

However, an individual billing

document can be created in VF01
following the menu path:
Logistics, Sales and Distribution,
Billing, Billing Document, Create.

Proforma Invoices
A proforma invoice is an invoice that is generated before the shipment is made.
Often the proforma invoice is used by our customers to obtain importation
license when shipping overseas.
There are two methods by which a proforma invoice is generated:
For an entire sales documentissued for the entire open order.
For an outbound deliveryissued for just the material on a specific delivery.
Note: Data from Proforma invoices is not transferred to Accounting.

Creating a Proforma Invoice from a Sales Document

From the drop down
menu, choose the
billing type
Proforma for
Order.

Enter the sales order

document number.
Hit enter.

Creating a Proforma Invoice from a Sales Document

The material on the
order will be listed.
To finish processing
your proforma
invoice, click on the
Save icon.

Once the invoice has been generated,

the document number will appear at
the bottom of the screen.
The document will automatically
print to the users designated printer.

Sales Order Processing

Sales and Distribution Lists
PR00 Material Pricing
Availability checking within Inquiry
Delivery Due List
Delivery Groups/Ship Complete Shipping tab

Sales Order Processing

Free Delivery FD (Sample, Shows, Warranty)
Schedule item category

Proforma Invoice Creation

Errors Information, Warning, Error
Order Reason Non G/L Sales Consignment

Sales Order Processing

Is a consignment fill-up order relevant for billing?
Is a consignment return relevant for billing?
What is the search criteria you will use to find the forwarding
agent (freight carrier)?
What information is required when entering a return order
request?
What process needs to take place for a Credit Memo to be
generated from a Credit Memo Request?
What does a rush order (SO)do different then a standard order
(OR)?

Sales Orders
Hands-On Order Processing Exercise