OTC Process SAP

1. OTC Process

2. Section 1
Training Overview

3. Unit Objectives
 Upon completion of the training you will be able to
Conceptual
 Sales Organizational Level
 Sales Process
 Tables Information related to OTC process

4.  Order-To-Cash (OTC) End-to-End Process:
 Contract
 Sales Order
 Delivery
 Post Goods Issue
 Billing
 Incoming Payment process

5. Organizational Level
Section 2

6. Organization level in Sales Process
 A variety of organizational units are available for modeling sales business
transactions. In the sales area, the following organizational structures can
be defined and used to model and structure the sales structures
 Sales Organization
 Distribution Channel
 Division
 Sales Area
 Sales Group

7. Organization level in Sales Process
 Sales Organization
 A sales organization represents the organizational structures in
sales and distribution. Each sales organization represents a
selling unit as a legal entity. It is, for example, responsible for
product liability and other customer rights of recourse.
 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, for example, its
own customer and material master data as well as condition
records.

8. Organization level in Sales Process
 Distribution Channel
 Distribution channels are used in Sales and Distribution to provide
the market with the best possible service. Distribution channels
provide a general structure for distributing goods.
 Wholesale trade, sales to industrial customers or direct sales from
a plant are typical examples of distribution channels.
 Distribution channels can be set up according to the company's
market strategy or internal organization.
 Customers can be served through one or more distribution
channels within a sales organization.

9. Organization level in Sales Process
 Division
 A broad product range can be divided into divisions. In the SAP
system, you can also define a division-specific sales structure.
 You can make customer-specific agreements for each division, for
example regarding partial deliveries or pricing. Within a division, you
can carry out statistical analyses or devise your own marketing
strategies.

10. Organization level in Sales Process
 Sales Area
– A sales area is a combination of sales organization,
distribution channel and division. Sales documents, delivery
documents, and billing documents are always assigned to a
sales area.
– Every sales process always takes in a specific sales area.
– The relevant master data can usually be maintained explicitly
for each sales area, for example :
– Sales-relevant customer master data
– Sales-relevant material master data (the division is a general
field of the material master; as a result, a material can only be
assigned to one division.)
– Conditions (prices, discounts/surcharges)

11. Organization level in Sales Process
 Sales Group
A group of sales people who are responsible for
processing sales of certain products or services.

12. Sales Process

13. Sales Process
 Effective sales order processing connects all activity to customer
demand in a series of integrated processes. The SAP System
application component Sales and Distribution makes this sales order
processing possible.
 Posting the customer incoming payments is part of the SAP System
application component Financial Accounting. As part of handling
payments, open items and post incoming payments are checked.
 The Customer Order Management cycle can begin with Pre-Sales
Activities. For example, in response to a customer inquiry , a quotation is
sent.
 As part of sales order processing, a sales document is created.
 As part of shipping processing, delivery of goods is performed.
 In the billing process, invoice is created and all necessary data is
transferred into Accounting document.

14. OTC Process Flow
 OTC End-To-End Process Flow
Order-To-Cash (OTC) Transaction Process Flow
SO Delivery PGI Billing IP
Contract

15. OTC Process Flow
 OTC End-To-End Process Flow
Order-To-Cash (OTC) Transaction Process Flow
SO Delivery PGI Billing IP
Contract

16. Contract
 Contract
A Contract is an outline agreement between you and your customer.
 Quantity Contract
– This is a contract valid for a certain time period. The contract does not contain any
schedule lines, delivery quantities, or delivery dates. The same functions are
available in contracts as in orders.
– Release orders are created with reference to a contract. This generates a
document flow record that allows you to update released quantities and values in
the contract.
 Value Contract
– This is a contract which defines that your customer agrees to purchase a fixed
dollar value (target amount) of goods and services during the defined period.
– The value contract can contain other agreements between you and your customer
that are checked in the release orders:
– Special price agreements
– Customer restrictions
– Material restrictions
– You can change the target values in the contract later.

17. Create Contract – VA41
 Create Contract
 Transaction code to create Contract: VA41

18. Create Contract – VA41
 Required SAP First Screen Fields:
 Contract Type : ZQ (Quantity Contract)
 Sales Area : 4700, 10, 10
 Sold-To-Party : 106
 Ship-To-Party : 106
 PO Number : Test PO 1234
 Valid From : 01/16/2007
 Valid To : 01/16/2008
 Material : 1000557
 Quantity : 10
 Plant : 4702
Click Save Button. A message appears saying
“Quantity Contract # has been saved” in the status bar

19. Create Contract Screen – VA41

20. OTC Process Flow
 OTC End-To-End Process Flow
Order-To-Cash (OTC) Transaction Process Flow
SO Delivery PGI Billing IP
Contract

21. Sales Order
 A sales document is created in a sales area.
 A sales order can refer to a business transaction that already exists in
the system. For example, one or more inquiries and quotations can be
reference documents. In this case, the SAP System copies the relevant
data to the sales order.
 A quotation can also result in several sales orders. This allows you to
group all the quotations for one customer.

22. Create Sales Order (SO) – VA01
 Create Sales Order (SO) Process:
 SO Creation without reference to Contract
 SO Creation with reference to Contract
 Transaction Code to Create PO: VA01

23. SALES ORDER WITHOUT REFERENCE TO CONTRACT

24. Create Sales Order (SO) without reference to Contract:–
VA01
 Required SAP First Screen Fields:
 Order Type : ZOR (Standard Order)
 Sales Area : 4700, 10, 10
 Sold-To-Party : 106
 Ship-To-Party : 106
 PO Number : Test PO 1234
 Req. deliv.date : 03/16/2007
 Material : 1000557
 Quantity : 10
 Plant : 4702
Click Save Button.
A Message saying “ZStandard Order # has been saved”
will be displayed in the Status bar of the SAP Screen

25. Create Sales Order (SO) without reference to Contract:–
VA01

26. SO creation screen without reference to contract – VA01
ZStandard Order 10001554 has been saved

27. SALES ORDER WITH REFERENCE TO CONTRACT

28. Create Sales Order (SO) with reference to Contract:–
VA01
 Enter the Order Type
 Click Create with Reference button and select the Contract tab.

29. Create Sales Order (SO) with reference to Contract:–
VA01
 Enter the Contract number.
 Click Copy button.
 Save the Sales Order screen.

30. Sales Order Creation – VA01
 Tables
 VBAK – Sales Document Header Data
 VBAP – Sales Document Item Data
 VBPA – Sales Document: Partner
 VBKD – Sales Document: Business Data
 VBEP – Sales Document: Schedule Line Data

31. OTC Process Flow
 OTC End-To-End Process Flow
Order-To-Cash (OTC) Transaction Process Flow
SO Delivery PGI Billing IP
Contract

32. Create Delivery Document
 Create Delivery Document Process:
 Picking
 Packing
 Shipping (Each Del. Doc. Could have a different shipping point)
 Partial Delivery
 Release Delivery:
 Customer Specific Function
 Credit Management
 Unless Release Delivery is done (Control Function), no Delivery
or Billing can take place
 Transaction Code to Create Delivery Document: VL01N

33. Create Outbound Delivery Document: (Cont.)
 Required SAP First Screen Fields:
 Enter the Sales Order number
 Shipping Point: Example: 0001
 Required SAP Second Screen Fields:
– Pick Quantity: Example: 30
– Storage Location: Example: 1000
Click Save Button
A Message saying “Outbound Delivery # has been
saved” will be displayed in the Status bar of the SAP
Screen

34. Create Delivery Document: TCode: VL01N

35. Create Delivery Document: TCode: VL01N
 Select the material and click Pick tab.
 Enter the Pick Quantity and Save
ATLas OutB. Delivery 80000814 has been saved

36.  Tables
 LIKP – SD Document Delivery Header Data
 LIPS – SD Document Delivery Item Data

37. OTC Process Flow
 OTC End-To-End Process Flow: Post Goods Issue
Order-To-Cash (OTC) Transaction Process Flow
SO Delivery PGI Billing IP
Contract

38. Post Goods Issue (PGI)
 Post Goods Issue (PGI) Process
 Transaction Code to Create Delivery Document: VL02N

39. Post Goods Issue: (PGI): (Cont.)
 Required SAP First Screen Fields:
 Outbound Delivery Document Number: 80000807
 Required SAP Second Screen Fields:
 Verify Fields:
 Click on POST goods Issue button
Click Save Button
A Message saying “Outbound Delivery # has been
saved” will be displayed in the Status bar of the SAP
Screen

40. Post Goods Issued: TCode: VL02N

41. Post Goods Issued: TCode: VL02N
 Select the material and click Post Goods Issue button

42. Post Goods Issued: TCode: VL02N
ATLas OutB. Delivery 80000814 has been saved

43. Post Goods Issued: TCode: VL02N
 Tables
 LIKP – SD Document Delivery Header Data
 LIPS – SD Document Delivery Item Data

44. OTC Process Flow
 OTC End-To-End Process Flow: Billing
Order-To-Cash (OTC) Transaction Process Flow
SO Delivery PGI Billing IP
Contract

45. Billing and Invoicing
 Create Billing and Invoicing Documents Process:
 Customer Billing:
 Delivery Based
 Sales Order Based
 Inter-Company Billing (Not Obligatory)
 Debit/Credit Memo
 Billing based on Delivery
 Sold-To and Paying Party Should be the same customer:
 Go to Customer Master Data
 Verify Pay-To Party
 Execute Process
 Auto-Batch Management Process
 Dunning Process
 Pricing Condition needs to be understood and considered:
 Example: ZPRO Customer/Material
 ZPR1 Customer/End User/Material
 ZPR2 Customer/Indirect/End User/Material
The System will Pull the appropriate pricing for each Material

46. Billing and Invoicing (Cont.)
 Rebates:
 Could be handled as part of billing or separately
 Rebate Release will have to be issued:
As pert of Master Data
Approved
 Rebate Conditions:
Customer
Material
Employee Sales
 Once Rebate is Issued:
Debit/Credit Memo (2-step Process)
FI – Direct Rebate Processing (1-step Process)

47. Billing and Invoicing (Cont.)
 Returns:
 Linked to SO:
 Warranty:
• Subsidized Price
• Free of Cost
 No-Warranty
 In-House – We are the supplier
 Procured from different vendor
 Re-Work to resell order process:
 Obsolescence
 Scrap Sale
 Re-work and re-furbish and resell
 Return to Supplier
 Sales Deals:
 Fix Property
 Seasonal Item
 Transaction Code to Create Billing Document: VF01

48. Billing and Invoicing: (Cont.)
 Required SAP First Screen Fields:
 Document Number: 80000807
Click on the Save Button
A message appears saying “ Document # has been
saved”

49. Billing and Invoicing: TCode: VF01

50. Billing and Invoicing: TCode: VF01
Document 7100001024 has been saved

51. Billing and Invoicing: TCode: VF01
 Tables
 VBRK – Billing Document Header
 VBRP – Billing Document Item
 BSIS – Accounting: Secondary Index for G/L Accounts
 BSID – Accounting: Secondary Index for Customers
 BKPF – Accounting Document Header
 BSEG – Accounting Document Segment

52. OTC Process Flow
 OTC End-To-End Process Flow: Incoming Payment
Order-To-Cash (OTC) Transaction Process Flow
SO Delivery PGI Billing IP
Contract

53. Incoming Payment – F-28
 Incoming Payment Process:
 Create Payment Document
 Receive payment From Customer
 Payment Forms:
Bank Check
Bank Draft
Others
 Transaction Code to Create Billing Document: F-28

54. Incoming Payment: (Cont.) – F-28
 Required SAP First Screen Fields:
– Document Date: Example: 07/07/05
– Company Code: Example: 7001
– Currency Rate: Example: USD
– Bank data: Account: Example: 113002
– Bank data: Amount: Example: 570.00
– Open item selection: Account: Example:10000
– Additional Selections: Select Document Number Icon
– Click Save button
 Required SAP Second Screen Fields:
– Document Number: From: Example: 7100000012
– Click Process Open Items button
Click on the Save Button and the Document Will be saved and Document
Number will be displayed at the bottom of the SAP Screen
Document 1400000011 was posted on company code 7001

55. Incoming Payment: TCode: F-28

56. Incoming Payment: TCode: F-28

57. Incoming Payment: TCode: F-28
Document 1400000316 was posted in company code 4700

58. Incoming Payment: TCode: F-28
 Tables
 BSAS – Accounting: Secondary Index for G/L Accounts (Cleared
Items)
 BSAD – Accounting: Secondary Index for Customers (Cleared
Items)
 BKPF – Accounting Document Header
 BSEG – Accounting Document Segment

59.  BOM materials are updated in MAST table