SAP R/3 TrainingSales to cash overview – from Contract toInvoice Dilip Sadh
AGENDA• Targets of the training• Organizational elements in sales• Master Data in sales• The sales process - overview• Contracts and sales orders• Deliveries, picking and goods issue• Billing
Targets of the training Dilip Sadh• To show you how to work with SAP R/3.• To show you the most important, most need and basic functionalities of SAP R/3.• To show you how processes are represented in SAP R/3.• We are not going to show you special Q8 processes and functionalities. • The training is set up on a general CGEY’s SAP Oil &Gas trainings system and therefore e.g. no Q8 specific customer or material mater data are used. • CGEY’s SAP Oil & Gas trainings system represents one possible but practice-proven solution how to run oil and gas business.
• Organizational elements in sales – Sales area - Sales organization - Distribution channel - Division - The sales office organization – Plant – Shipping point
Organizational elements in sales Dilip SadhSales area•A combination of sales organization, distribution channel anddivision. •All data relevant for sales can be defined per sales area, e.g. master data, sales documents,etc. •Generally analyses are carried out per sales area. They can be used as selection criteria. •Sales areas are adapted to company codes. A company code represents a legal entity for which internal and external reporting is carried out (a balance sheet and P&L are required). •Sales Areas can be defined for any combination of sales organization, distribution channel, and division.
Organizational elements in salesSales organization•The sales organization is the selling unit in the legal sense.•Responsible, e.g. for product liability and other recourse claimsmade by customers.•Regional subdividing of the market can also be carried out bymeans of sales organizations.•Each business transaction is processed within it.•It is assigned to a company code where sales revenues arerecognized in the chart of account.•It is required to have at least one sales organization per companycode.•It is the highest summation level for sales statistics.
Organizational elements in salesDistribution channel•Distribution channel •Within a sales organization a customer can be supplied through several distribution channels. •The distribution channel is the unit through which saleable materials or services reach the customers. •Typical distribution channels are, for example, wholesale trade, retail trade, industrial customers or direct sales from plant. •The distribution channel is assigned to one or more sales organizations.
Organizational elements in salesThe Division•Division •The Division is used primarily to split the organization by product e.g. Fuel, Lubes. •Together with the sales organizations and Distribution Channel, the Division stores it’s own master data for customers, materials and pricing. •For every division you can make customer-specific agreements on, for example, partial deliveries, pricing and terms of payment. •Within a division you can carry out statistical analyses or set up separate marketing.
Organizational elements in salesOverview Company code 800 S Sales A 10 1000 2000 3000 L organization E S Sales 10 20 10 20 channel A R E Division 01 02 01 10 01 02 03 A S
Organizational elements in salesThe sales office organization•The sales office structure reflects the organizational hierarchyresponsible for sale and comprises of the following entities… •Sales office •Sales group •Sales employee•The use of the sales office structure in SAP is optional.•As oppose to the sales organizational structure, the sales officestructure does not impact the structure of master data nor the pricingfunctionality.
Organizational elements in salesThe sales office / The sales group•The sales office •A sales office typically has a physical address but can also be a logical unit. •The sales office is assigned to one or more sales areas. Sales employees are assigned to a sales office. •The sales office acts as a selection criterion for lists of sales documents.• The sales group •The sales group is a cross sales office subdivision of the sales office. •The sales group is assigned to one or more sales offices. •Sales employees are assigned to a sales group. •The sales group acts as a selection criterion for lists of sales documents.
Organizational elements in salesThe sales employee•The sales employee processes business transactions within thecompany.•The sales employee is assigned to a sales organization, a salesoffice and a sales group.•The sales employee can be linked to the customer master data andsales documents.
Organizational elements in salesPlant and Shipping points•Plant •Originally an organizational element out of Materials Management where materials are produced and / or are stored. •In customizing, plants are assessed to company code and to sales organization. •A plant can be assessed to more than one sales organization, but never can be assessed to more then one company code.•Shipping point •Is responsible for scheduling and processing deliveries to customers, as well as replenishment deliveries to your own warehouses. •A delivery is always carried out by one shipping point only. • Shipping points are defined dependant from: the delivering plant, the type of shipping (e.g. train, truck) and the loading equipment necessary.
Organizational elements in salesPlant assingnment Company code 1 Company Code 2 plant 1 plant 2 plant 3 plant 4 plant 5 SO 1 SO 2 SO 33 SO
• Master data in sales – Overview customer and material master data – Customer master data - Customer partner functions - Account groups - Organizational levels – Material master data - General data - Sales data
Master data in salesOverview customer and material master data I Ship-to party Bill-to party Customer Sold-to party Material Payer Products Services
Master data in salesOverview customer and material master data II •Master data are time-stably data. •The integration of all customer and material data in a single database objects eliminates redundant data storage. Areas such as order processing, delivery, invoicing, purchasing, inventory management, etc. can all use the same data. •A single, correct and complete customer master record reduces data entry and potential errors for order, delivery and invoice processing.
Master data in salesCustomer master data – partner functions I Sold-to party Ship-to Bill-to party party Business partners Payer Others
Master data in salesCustomer master data – partner functions II•Have to be created for all business partners. Standard Businesspartners in sales and distribution are defined as sold to party, ship-toparty, payer and bill-to party. •Sold-to Party: For the sold-to party, data on sales is necessary. In many cases, the company which places an order for the delivery of goods or the rendering of services is at the same time ship-to party, payer and bill-to party. For this reason the function sold-to party includes all these other functions. •Ship-to Party: For the ship-to party only data required for shipping is necessary (for example, unloading point and goods receiving hours).
Master data in salesCustomer master data – partner functions III •Payer: A payer is a company or person who settles the invoices for delivered goods or rendered services. For the payer data on billing schedules and bank data is necessary. • Bill-to Party: For the bill-to party the address is required as well as data on output and possibly data on electronic communication. •Other: Other partners can be created e.g. one time customer, sales employee etc.
Master data in salesCustomer master data – account groups I Possible partner Account groups functions Others Other (000X) Payer Payer (0003) Bill-to party Bill-to party (0004) Ship-to Ship-to party (0002) party Sold-to Sold-to party (0001) party
Master data in salesCustomer master data – account groups II•The account group ensures that for the different partner functions ofa customer only the necessary screens and fields are displayed forinput in master data.•Therefore different partner functions can have different accountgroups, e.g. one account group for the sold-to party and one for theship-to party.•The account group also controls which partner functions thecustomer can transfer into a document.
Master data in salesCustomer master data – organizational levels I Finance module Client Level Company Level General data: Financial data: - address - account mgmt - marketing - payment trans ..... ..... Customer Sales Area Level Credit control Area Sales and dist. Credit mgnt: data: - credit status - sales, shipping - credit limit - billing, output ..... .....
Master data in salesCustomer master data – organizational levels II•Customer data is important for both - accounting department and sales and distribution department.•To avoid data redundancy, accounting data and sales and distribution data is stored in one master record but at different organizational levels. •Data at client level (general data) – General data, like address and telephone number, etc., is maintained for every customer. – General data are identified only by the customer number, not by company code or sales area.
Master data in salesCustomer master data – organizational levels III• Data at sales area level – Sales and distribution data is of interest for the sales and distribution department, e.g. data on pricing or shipping. – Data only applies to one sales area, and therefore is dependent on the sales structure (sales organization, distribution channel and division). – One customer can be defined for more then one sales structure.
Master data in salesCustomer master data – organizational levels IV• Company level – Company code data is of interest for the accounting department. It includes, for example, information on insurance or account management. – This data applies to only one company code.• Data at credit control area level – Credit management data is maintained in a separate view of the customer master, at the credit control area level. – A credit control area is defined for one or more company codes. Credit management data is important for credit limit checking in sales order processing.
Master data in salesMaterial master data – general data and sales data I General data Sales spec. data Data depending on Sales area / organization Plant specific
Master data in salesMaterial master data – general data and sales data II•Some material data is valid at all organizational levels, while otherdata is valid only at certain levels.•In sales especially plant-specific material data and data on sales areaand sales organization level is important. •Data on plant level: All data that is valid for a particular plant, as well as for the storage locations. •Data on sales organization level: All material data relevant to sales is stored at sales organization level. This includes, for example, grouping terms such as account assignment group and pricing reference material.
• The sales process – Overview - Process sales out of own stock - Process sales out of third-party stock – Sales documents - Structure of sales document - Views in sales document - Sources of data in sales document – Document flow
The sales processOverview I – own stock material md customer md SAP Delivery Shipment Shipment condition planning planning transpotation Standard Delivery Goods FI Contract Order Invoice Creation Delivery issue creation condition CO pick upRe-scheduledeliverydate and Availabilitychange checksalesorder Re- scheduling
The sales processOverview II – third-party stock material md customer md SAP FI Standard Billing Billing Contract Order Release CO creation Invoice Verification Purchase Purchase MM Requisition Order Invoice Goods Receipt
The sales processSales document – structure of sales document Data valid for the whole Head document, e.g. Sales data, conditions Item 1 Data just valid for the item, e.g. Sales data, conditions Schedule line 1 Item 2 Data relevante for shipping Schedule line 1 and supply (delivery time and delivery quantity) Schedule line 2
The sales processSales document – view of sales document Overview Details Head On header On item level level Item Schedule line
The sales processSales document – sources of data in sales document Data out of Master data Head Item 1 By system determined data Scedule line 1 Item 2 Data out of Former documents Scedule line 2
The sales processSales document – document flow I Sales Contract order Delivery Invoice Retoure Delivery Credit note Documentflow in sales order Contract . Sales order .. Delivery ... Invoice .. Retoure ... Retoure delivery .... Credit note
The sales processSales document – document flow II•A business process is an order of process steps. In SAP each step isrepresented in a document. Process chains are described in thedocument flows.•Document flows exist on document level and on item level.•In document flow for each document a status is listed, e.g. for salesorders the delivery status; for deliveries the picking status andinvoice status.
• Contract and sales order entry – Contract and sales order document types – The Contract – The sales order – Data in contract and sales order - Determination of plant - Determination of shipping point - Availability check
Contract and sales order entryContract and sales order document types – overview I•Several standard SAP document types exist. These document typescan be completed by defining special document types.•Via the document type several functions can be activated, e.g. pricecalculation, availability check, credit limit check, etc.•Document types have to be linked to sales areas.
Contract and sales order entryContract and sales order document types – overview II•Mainly two kinds of standard SAP contracts exist. •Quantity contracts: – Defined quantity in a defined period of time. – No special defined order and delivery dates or quantities. •Scheduling assignments: – Clearly defined order quantity and time.•EXTRA: Special Oil contracts are Spot and Term contracts. •Spot contract: generally short period of validity (one month) •Term contract: generally long period of validity (one year)•In addition to standard contract an oil contract has an quantityschedule. Call-off quantities are checked against quantity schedulelines in contract.
Contract and sales order entryContract and sales order document types – overview III•Mainly three kinds of standard SAP sales order types exist • Standard order: – Typical document with data coming out of master data or former documents. • Rush order: – Pick up or delivery of material directly. – Billing later on. •Cash sales • Sold-to party receives the material directly. • Material has to be paid when placing the order.
Contract and sales order entryContract and sales order document types – overview IV•EXTRA: Special oil sales orders are call-offs referring to contracts.These call-offs – as well as oil contracts – has quantity schedules. • Automatic call-off: via interface to stock system automatically created call-off generally referring to term contract. •Nomination: manually created call-off referring to a term or spot contract.
Contract and sales order entryThe contract I Contract Sales Sales Sales order Sales order Sales order Sales order Sales order order order Delivery updateKM – standard contractZKM1 – special oil term contractZKM2 – special oil spot contract
Contract and sales order entryThe contract II•A contract is a general agreement between vendor and customervalid within a defined period of time.•In a contract a special price for a defined quantity of a definedmaterial is confirmed.•No special defined points of time for delivery.•Call-offs on contract which update it.•In contracts the same functionalities like in sales order are possible.•EXTRA: In oil contracts the total quantity is divided into subsets inquantity schedule.
Contract and sales order entry The Sales order Creation without Sales Sales orderreference to contract order delivery Contract Creation with Salesreference to contract order delivery update OR – standard Order ZAB1 – automatic call-off without transportation (oil) ZAB2 – automatic call-off with transportation (oil) ZAB3 – Nomination, i.e. Manual call-off (oil)
Contract and sales order entryData in contract and sales order – determination of plant I Customer- material information Plant defined record Sales order Not defined Item 10 Master data Ship-to party Plant defined Item 20 Item 30 Not defined Item 40 Material master data Plant defined
Contract and sales order entryData in contract and sales order – determination of plant II•First system checks if a plant is determined in customer-materialinformation record. If there is one this plant is proposed in contract /sales order. If not …•System checks if a plant is determined in mater data of ship-to party.If there is one this plant is proposed in contract / sales order. If not …•System proposes the plant which is determined in material mater.
Contract and sales order entryData in contract and sales order – determination of shipping point I Shipping Loading Shipping point possible Plant condition group (proposed) Shipping point 0003 01 crane 0001 0002 0004 Ship-to party/ Sales order Material sales order item
Contract and sales order entryData in contract and sales order – determination of shipping point II•Shipping point is determined pro-item.•System proposes a shipping point via • Shipping condition (out of sales order / contract) • Loading group (out of material maser data) • Plant (out of sales order)•Therefore in customizing one or more shipping points have to bedetermined for each combination of these data.•Shipping point is relevant for delivery. A delivery is always carriedout by one shipping point.•In delivery a shipping point can not be changed anymore.
Contract and sales order entryData in contract and sales order – pricing conditions I Displayed in system Price elements Condition types -Price list Prices -Material price PR00 -Customer specific price . . -To customer KF07 Discounts and KF04 -To material surcharges -... . . -Incoterm part 1 KF00 Fright -Incoterm part 1+2 Taxes
Contract and sales order entryData in contract and sales order – pricing conditions II•Condition types are stored in condition records.•Condition records allow you to store and retrieve pricing data in thesystem.•All condition types you want to use for automatic pricing must bestored in the system as condition records.•Condition records are defined as a function of a combination offields.
Contract and sales order entryData in contract and sales order – pricing conditions III Condition type value 0001 01 1500066 40303384 200 EUR per pc PR00 Key Combination Sales Organization Distribution Channel Customer Material
Contract and sales order entryData in contract and sales order – availability check I 1 7 Sales or. Mat. Req. del. Mat. date Availab date Availab Incoming Entry order Backward scheduling Req. Del. date Forward scheduling 100 + 60 50 + delay + - 20 pc No 40 quantity; Confirmed Availability!! Complete delivery date - delivery 100 Issue
Contract and sales order entryData in contract and sales order – availability check II•Availability check without taken replenishment lead time intoaccount •Incoming order today with a requested delivery date at 7th. •When carrying out a backward scheduling, at systems determined date, no goods are available. •Because the customer wants a complete delivery, a quantity of 20 pc becomes available at stock shortly before requested delivery date, when 60 pc are incoming. •When carrying out forward scheduling the system determines a confirmed delivery date later than requested.
Contract and sales order entryData in contract and sales order – availability check III 1 7 Sales or. Mat. Req. del. Mat. date Availab date Availab Incoming Entry order Backward scheduling Req. Del. date 100 Forward scheduling + Replenishment lead time delay 20 + 20 - 20 pc No quantity; Confirmed Availability!! Complete delivery date - delivery 100 Issue
Contract and sales order entryData in contract and sales order – availability check IV•Availability check with taken replenishment lead time into account •Incoming order today with a requested delivery date at 7th. •When carrying out a backward scheduling, at systems determined date, no goods are available. •So at same time when order comes new goods are ordered. •Because of taking replenishment lead time into account, the 20 pc can be delivered earlier compared to the case when availability is checked without observing replenishment lead time.
• Delivery, picking and goods issue – Ways of delivery creation – Document structure - Header data / Item data – Relation between sales order and delivery – Delivery scheduling - Complete delivery / Partial delivery / Order combination – Picking – Goods issue
Delivery, picking and goods issueWays of delivery creation1 Creation of a delivery with direct reference to a sales order in system Sales order Delivery2 Creation of delivery by means of delivery due list Delivery due list Sales Sales order Sales order Delivery Sales Sales order Sales order order Sales order Sales order order Delivery
Delivery, picking and goods issueDocument structure - Header data / Item data •Shipping point •Data about delivery scheduling and transportation scheduling (e.g. Goods issue Header date) •Weights and volumes of the entire outbound delivery Item 1 •Sold-to party and the ship-to party numbers •Route Item 2 •Material number Item 3 •Delivery quantity •Plant and storage location specifications •Picking date •Weights and volumes of the individual items
Delivery, picking and goods issueDelivery scheduling I Material Transpor- Date of availability tation Loading Goods issue Delivery date order date planning Transit time Loading time Lead time for transportation planning Pick / pack time
Delivery, picking and goods issueDelivery scheduling II• You must start picking and packing activities on the material availabilitydeadline. This deadline must be selected early enough in advance so thatthe goods are ready by the given loading deadline.•The transportation scheduling deadline is the date on which you muststart to organize the transportation of the goods. This deadline must beselected early enough to ensure that the means of transport is available bythe loading deadline.•The loading deadline is the date on which the goods must be availablefor loading and on which all vehicles that are required to ship these goodsmust be ready for loading. After the time required for loading the goods(loading time) has expired, goods issue can be carried out.• The goods issue deadline is the date on which the goods leave thecompany in order to arrive punctually at the customer location.•The delivery deadline is the date on which the goods are to arrive at thecustomer location. The difference between the goods issue deadline andthe delivery deadline is calculated from the transit time required for theroute between the delivering plant and the customer.
Delivery, picking and goods issueRelation between sales order and delivery I1 Complete delivery Sales order Delivery 10 pc 10 pc Del.date 15.09. Del.date 18.09.2 Partial deliveries Sales order Delivery 10 pc 4 pc Del.date 15.09. Del.date 15.09.
Delivery, picking and goods issueRelation between sales order and delivery II3 Sales order combination Sales order 10 pc Del.date 15.09. Delivery 26 pc Del.date 15.09. Sales order 16 pc Del.date 15.09.Assumption:a) ship-to party is marked in master data for order collection.b) Same ship-to party in sales order one and two.c) Same delivery date and material availability date in sales order one and two.
Delivery, picking and goods issuePicking I Stock Shiping point Delivery creation Delivery Pick Del.quantity : 10 list Pick quantity: 10 Pick quantity Feedback from picking
Delivery, picking and goods issuePicking II• The picking process involves taking goods from a storage locationand staging the right quantity in a picking area where the goods willbe prepared for shipping.• Three ways of carrying out picking • Automatically during outbound delivery creation • Routinely at certain times • Manually according to overviews of the days workload.
Delivery, picking and goods issueGoods issue Store Shipping point Account 1 Inventory Delivery 11 X X Goods issue
• Billing – Ways of invoice creation – Billing document types – Document structure - Header data / Item data - Pricing conditions – Billing methods - Individual billing / Invoice split / Collective billing – Interface to FI / CO
BillingWays of invoice creation I (basic notes) 1 Sales order-related billing Sales Sales order order delivery invoice 2 Delivery-related billing Sales Sales order order delivery invoice
BillingWays of invoice creation II1 Manual billing Sales order Delivery Invoice2 Creation of delivery by means of billing due list Billing due list Sales Sales order Sales order Invoice Sales Sales order Sales order order Sales order Invoice order Delivery
BillingBilling document types Sales order Delivery Invoice Order / Delivery F1/F2 related invoice Credit memo Credit memo request RE/G2 Credit memo/credit memo for returns Debit memo Debit memo request L2 Debit memo Cancellation invoice Cancellation S1/S2 invoice /credit memo Sales order Pro forma invoice Pro forma invoice for Delivery F5/F8 sales order and delivery
BillingDocument structure - Header data / Item data •Identification number of the payer •Billing date •Net value of the entire billing document Header •Document currency •Terms of payment and Incoterms •Partner numbers, such as the identification Item 1 number of the sold-to party •Pricing elements Item 2 •Material number Item 3 •Billing quantity •Net value of the individual items •Weight and volume •Number of the reference document for the billing document •Pricing elements relevant for the individual items
BillingBilling methods I 1. Individual billing Delivery Invoice Sales order 3. Collective billing Delivery Invoice Sales order Delivery Delivery Invoice 2. Invoice split Invoice Sales order Delivery Sales order Delivery Invoice
BillingBilling methods II• Assumptions for invoice split • In Customizing for copying control, you can specify requirements for splitting to prevent sales orders or deliveries from being combined into a collective billing document, e.g. Bill-to party.•Assumptions for collective billing • the header data appearing in the billing document must agree . • the split conditions specified do not apply.
BillingIntegration with Fi / Co I Financial accounting (FI) • Ballance demands to debtors • General ledger • Gains • Losses • Accruals Invoice Account determination Controlling (CO) • Profit center • Cost center • Extended general ledger • Projects • Make-to-order sales orders • Plant maintenance orders • Profitability analysis (COPA) • Cost collector
BillingIntegration with Fi / Co II – account assignment• The system can post entries in the billing documents automaticallyto the relevant accounts. To do this, it must first carry out accountassignment.•Elements for account assignment: • Chart of accounts of the company code • Sales organization • Account assignment group of the customer (from the customer master record, Billing screen, Account group field) • Account assignment group of the material (from the material master record, Sales 2 screen, Account assignment group field) • Account key (from the pricing procedure)•The system carries out account assignment using the conditiontechnique.