SAP R/3 Training
Sales to cash overview – from Contract to Invoice
Dilip Sadh
AGENDA
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Targets of the training
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Organizational elements in sales
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Master Data in sales
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The sales sales proces process s - over overview view
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Contracts and sales orders
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Deliveries, picking and goods issue
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Billing
Targets of the training
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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. •
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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.
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Organizational elements in sales –
Sales area Sales organization Distribution channel Division The sales office organization
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Plant
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Shipping point
Organizational elements in sales
Dilip Sadh
Sales area A combination of sales organization, distribution channel and division. •
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 sales Sales organization The sales organization is the selling unit in the legal sense.
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Responsible, e.g. for product liability and other recourse claims made by customers. •
Regional subdividing subdividing of the market can also be carried out by means of sales organizations. •
Each business transaction is processed within w ithin it.
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It is assigned to a company company code where sales revenues revenues are recognized in the chart of account. •
It is required to have at least one sales organization organization per company company code. •
It is the highest highest summation summation level level for sales statistics. statistics.
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Organizational elements in sales Distribution channel Distribution channel
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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 sales The Division Division
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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 sales Overview
Company code S A L E S A R E A S
Sales organization Sales channel Division
01
800
10 1000
2000
3000
20
10
20
10
02
01 10
01
02
03
Organizational elements in sales The sales office organization The sales office structure reflects the organizational hierarchy responsible for sale and comprises of the following entities… •
Sales office
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Sales group
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Sales employee
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The use of the sales office structure in SAP is optional.
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As oppose to the sales organizational structure, the sales office structure does not impact the structure of master data nor the pricing functionality. •
Organizational elements in sales The sales office / The sales group The sales office
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A sales sales office office typi typicall cally y has a physi physical cal addres address s but can can also also be a logic logical al 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 .
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The sales group The sales group is a cross sales office subdivision of the sales office.
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The sales group is assigned to one or more sales offices.
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Sales employees are assigned to a sales group.
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The sales group acts as a selection selection criterion criterion for lists of sales documents. documents.
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Organizational elements in sales The sales employee The sales employee processes business transactions within w ithin the company. •
The sales employee is assigned to a sales organization, a sales office and a sales group. •
The sales employee can be linked to the customer master data and sales documents. •
Organizational elements in sales Plant and Shipping points Plant
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Originally an organizational element out of Materials Management 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
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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.
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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 sales Plant assingnment
Comp Co mpan any y co code de 1 plant 1
plant 2
SO 1
plant 3
SO 2
Comp Co mpan any y Co Code de 2 plant 4
plant 5
SO33 SO
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Master data in sales –
Overview customer and material master data
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Customer master data Customer partner functions Account groups Organizational levels
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Material master data General data Sales data
Master data in sales Overview customer and material master data I
Ship-to party Bill-to party Customer
Sold-to party Payer
Material
Products
Services
Master data in sales Overview customer and material master data II Master data are time-stably data.
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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 sales Customer master data – partner functions I
Sold-to party Ship-to party
Bill-to party
Business partners Payer
Others
Master data in sales Customer master data – partner functions II Have to be created for all business partners. Standard Business partners in sales and distribution are defined as sold to party, ship-to party, payer and bill-to party. •
Sold-to Party:
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For the sold-to party, data on sales sales is necessary. necessary. In many cases, cases, the company which places an order for the delivery of goods or the rendering of services services is at the same same time ship-to party, payer and bill-to party. party. For this reason the function sold-to party includes all these other functions. Ship-to Party:
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For the ship-to party only data required for shipping is necessary (for example, unloading point and goods receiving hours).
Master data in sales Customer master data – partner functions III Payer:
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A payer is a company or o r person who settles the invoices for delivered goods or rendered services. services. For the payer data data on billing schedules schedules and bank data is necessary. Bill-to Party:
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For the bill-to party the address is required as well as data on output and possibly data on electronic communication. Other:
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Other partners can be created e.g. one time customer, sales employee etc.
Master data in sales Customer master data – account groups I
Possible partner functions Others Payer Bill-to party Ship-to party Sold-to party
Account groups Other (000X) Payer (0003) Bill-to party (0004) Ship-to party (0002) Sold-to party (0001)
Master data in sales Customer master data – account groups II The account group ensures that for the different partner functions of a customer only the necessary screens and fields are displayed for input inp ut in maste masterr data. data. •
Therefore different partner functions can have different account groups, e.g. one account group for the sold-to party and one for the ship-to party. •
The account group also controls which partner functions the customer custom er can transfer transfer into a document document.. •
Master data in sales Customer master data – organizational levels I Finance module Client Level
Company Level
General data: - ad addr dres ess s - ma mark rket etin ing g .....
Financial data: - acc accoun ountt mgm mgmtt - pay paymen mentt trans trans .....
Customer Sales Area Level
Credit control Area
Sales and dist. data: - sal sales, es, ship shippin ping g - bil billin ling, g, outpu outputt .....
Credit mgnt: - cre credit dit sta status tus - cre credit dit lim limit it .....
Master data in sales Customer master data – organizational levels II •
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Customer data is important important for for both - accounting department 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.
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Data at client level (general data) –
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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 sales Customer master data – organizational levels III •
Data at sales area level –
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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 sales Customer master data – organizational levels IV •
Company level –
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Company code data data is of interest interest for the accounting accounting department. 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 –
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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 sales Material master data – general data and sales data I
General data Sales spec. data
Data depending on Sales area / organization
Plant specific
Master data in sales Material master data – general data and sales data II Some material data is valid at all organizational levels, while w hile other data is valid only at certain levels. •
In sales especially plant-specific material data and data on sales area and sales organization level is important. •
Data on plant level:
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All data that is valid for a particular plant, as well as for the storage locations. Data on sales organization level:
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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.
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The sales process –
Overview Process sales out of own stock Process sales out of third-party stock
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Sales documents Structure of sales document Views in sales document Sources of data in sales document
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Document flow
The sales process Overview I – own stock
customer md
material md SAP Delivery condition transpotation
Contract
Reschedule delivery date and change sales order
Standard Order creation
Availability check
Rescheduling
Shipment planning
Delivery Creation
Delivery condition pick up
Shipment planning
Goods issue
FI
Invoice CO
The sales process Overview II – third-party stock
customer md
material md
SAP
Contract
FI
Standard Order creation
MM
Billing Release
Purchase Requisition
Billing CO
Invoice Verification
Purchase Order
Invoice
Goods Receipt
The sales process Sales document – structure of sales document
Head Item 1
Data valid for the whole document, e.g. Sales data, conditions Data just valid for the item, e.g. Sales data, conditions
Sche Sc hedu dule le li line ne 1 Item 2 Sche Sc hedu dule le li line ne 1 Sche Sc hedu dule le li line ne 2
Data relevante for shipping and supply (delivery time and delivery quantity)
The sales process Sales document – view of sales document
Overview Head Item Schedule line
Details On header level
On item level
The sales process Sales document – sources of data in sales document
Data out of Master data
Head Item 1
By system determined data
Sced Sc edul ule e line line 1 Item 2
Data out of Former documents
Sced Sc edul ule e lin line e2
The sales process Sales document – document flow I
Contract
Sales order
Delivery
Invoice
Retoure
Delivery
Credit note
Documentflow in sales order Contract . Sales order .. Delivery ... Invoice .. Retoure ... Retoure delivery .... Credit note
The sales process Sales document – document flow II A business process is an order of process steps. In SAP each step is represented in a document. Process chains are described in the document flows. •
Document flows exist on document level and on item level.
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In document flow for each document a status is listed, e.g. for sales orders the delivery status; for deliveries the picking status and invoice status. •
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Contract and sales order entry –
Contract and sales order document types
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The Contract
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The sales order
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Data in contract and sales order Determination of plant Determination of shipping point Availability check
Contract and sales order entry Contract and sales order document types – overview I Several standard SAP document types exist. These document types can be completed by defining special document types. •
Via the document type several functions can be activated, e.g. price calculation, availability availability check, credit limit check, etc. •
Document types have to be linked to sales areas.
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Contract and sales order entry Contract and sales order document types – overview II Mainly two kinds of standard SAP contracts exist.
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Quantity contracts:
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Defined quantity in a defined period of time .
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No special defined order and delivery dates or quantities.
Scheduling assignments:
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Clearly defined order quantity and time.
EXTRA: Special Oil contracts are Spot and Term contracts.
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Spot contract: generally short period of validity (one month)
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Term contract: generally long period of validity (one year)
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In addition to standard contract an oil contract has an quantity schedule. Call-off quantities are checked against quantity schedule lines in contract. •
Contract and sales order entry Contract and sales order document types – overview III Mainly three kinds of standard SAP sales order types exist
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Standard order:
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Typical document with data coming out of master data or former documents.
Rush order:
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Pick up or delivery of material directly.
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Billing later on.
Cash sales
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Sold-to party receives the material directly.
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Material has to be paid when placing the order.
Contract and sales order entry Contract 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.
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Nomination: manually created call-off referring to a term or spot contract.
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Contract and sales order entry The contract I
Contract
Sales Sales order Sales order Sales order order
update
KM standard contract ZKM1 special oil term contract ZKM2 special oil spot contract –
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Sales Sales order Sales order order Delivery
Contract and sales order entry The contract II A contract is a general agreement between vendor and customer valid within a defined period of time. •
In a contract a special price for a defined quantity of a defined material is confirmed. •
No special defined points of time for delivery delivery..
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Call-offs on contract which update it.
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In contracts the same functionalities like in sales order are possible.
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EXTRA: In oil contracts the total quantity is divided into subsets in quantity schedule. •
Contract and sales order entry The Sales order
Creation without reference to contract
Creation with reference to contract
Sales Sales order order
delivery
Contract Sales order 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) –
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delivery
Contract and sales order entry Data in contract and sales order – determination of plant I
Customermaterial information record
Plant defined
Sales order
Not defined Master data Ship-to party
Item 10 Plant defined
Item 30
Not defined Material master data
Item 20
Item 40 Plant defined
Contract and sales order entry Data in contract and sales order – determination of plant II First system checks if a plant is determined in customer-material information 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.
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Contract and sales order entry Data in contract and sales order – determination of shipping point I
Shipping condition
Loading group
Plant
Shipping point (proposed)
possible Shipping point
01
crane
0001
0002
0003 0004
Ship-to party/ sales order
Material
Sales order item
Contract and sales order entry Data in contract and sales order – determination of shipping point II Shipping point is determined pro-item.
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System proposes a shipping point via
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Shipping condition (out of sales order / contract)
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Loading group (out of material maser data)
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Plant (out of sales order)
Therefore in customizing one or more shipping points have to be determined for each combination of these data. •
Shipping point is relevant for delivery. A delivery is always carried out by one shipping point. •
In delivery a shipping point can not be changed anymore.
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Contract and sales order entry Data in contract and sales order – pricing conditions I
Price elements
Prices Discounts and surcharges Fright
Taxes
Displayed in system
-Price list -Material price -Customer specific price
Condition types
PR00 . .
-To customer cust omer -To material materi al -...
KF07 KF04 . .
-Incoterm part 1 -Incoterm part 1+2
KF00
Contract and sales order entry Data in contract and sales order – pricing conditions II Condition types are stored in condition records.
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Condition records records allow you you to store and retrieve retrieve pricing data in the system. •
All condition types you want to use for automatic pricing must be stored in the system as condition records. •
Condition records are defined as a function of a combination of fields. •
Contract and sales order entry Data in contract and sales order – pricing conditions III
value
Condition type PR00
Key Combination Sales Organization Distribution Channel Customer Material
0001
01
1500066 40303384
200 EUR per pc
Contract and sales order entry Data in contract and sales order – availability check I
1 Entry
7
Mat. Availab
Sales or. date
Incoming order
Mat. Availab
Req. del. date
Backward scheduling
Req. Del. date Forward scheduling
100 +
60 +
50 +
100
Issue
No Availability!!
40
delay
20 pc quantity; Complete delivery
Confirmed delivery date
Contract and sales order entry Data in contract and sales order – availability check II Availability check without taken replenishment lead time into account •
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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 entry Data in contract and sales order – availability check III
1 Entry
7
Mat. Availab
Sales or. date
Incoming order
100 +
Backward scheduling
Req. Del. date
Forward scheduling Replenishment lead time 20 + 20 100
Issue
Mat. Availab
Req. del. date
No Availability!!
delay
20 pc quantity; Complete delivery
Confirmed delivery date
Contract and sales order entry Data in contract and sales order – availability check IV Availability check with taken replenishment lead time into account
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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.
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Delivery, picking and goods issue –
Ways of delivery creation
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Document structure Header data / Item data
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Relation between sales order and delivery
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Delivery scheduling Complete delivery / Partial delivery / Order combination
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Picking
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Goods issue
Delivery, picking and goods issue Ways of delivery creation 1
Creation of a delivery with direct reference to a sales order in system
Sales order
2
Delivery
Creation of delivery by means of delivery due list li st Delivery due list
Sales Sales order Sales order Sales Sales order Sales order order Sales order Sales order order
Delivery
Delivery
Delivery, picking and goods issue Document Docum ent structur structure e - Heade Headerr data / Item data Shipping point Data about delivery scheduling and transportation scheduling (e.g. Goods issue date) Weights and volumes of the entire outbound delivery Sold-to party and the ship-to party numbers Route • •
Header Item 1
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Item 2 Material number Delivery quantity Plant and storage location specifications Picking date Weights and volumes of the individual items
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Item 3
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Delivery, picking and goods issue Delivery scheduling I
Date of order
Material availability date
Transportation planning
Loading
Goods issue
Delivery date
Transit Tran sit time tim e Loading time Lead time for transportation planning Pick / pack time
Delivery, picking and goods issue Delivery scheduling II You must start picking and packing activities on the material availability deadline.. This deadline must be selected early enough in advance so that deadline the goods are ready by the given loading deadline. •
The transportation scheduling deadline is the date on which you must start to organize the transportation of the goods. This deadline must be selected early enough to ensure that the means of transport is available by the loading deadline. •
The loading deadline is the date on which the goods must be available for loading and on which all vehicles that are required to ship these goods must 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 the company in order to arrive punctually at the customer location. •
The delivery deadline is the date on which the goods are to arrive at the customer location. The difference between the goods issue deadline and the delivery deadline is calculated from the transit time required for the route between the delivering plant and the customer. •
Delivery, picking and goods issue Relation between sales order and delivery I 1
Complete delivery Sales order 10 pc Del.date 15.09.
2
Delivery 10 pc Del.date 18.09.
Partial deliveries Sales order 10 pc Del.date 15.09.
Delivery 4 pc Del.date 15.09.
Delivery, picking and goods issue Relation between sales order and delivery II
3
Sales order combination Sales order 10 pc Del.date 15.09. Sales order 16 pc Del.date 15.09 .
Delivery 26 pc Del.date 15.09.
Assumption: a) shi ship-t p-to o part party y is mar marked ked in mast master er data data for ord order er coll collect ection ion.. b) Sa Same me sh ship ip-t -to o part party y in sa sale les s orde orderr one one and and two two.. c) Same deliv delivery ery date date and mater material ial avail availabili ability ty date date in sales sales orde orderr one one and and two. two.
Delivery, picking and goods issue Picking I
Stock
Shiping point
Delivery creation Pick list
Pick qua quanti ntity ty Feedback from picking
Delivery Del.quantity : 10 Pick Pi ck qua quant ntit ity y: 10
Delivery, picking and goods issue Picking II The picking process involves taking goods from a storage location and staging the right quantity in a picking area where the goods will be prepared for shipping. •
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Three ways of carrying out picking •
Automatically during outbound delivery creation
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Routinely at certain times
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Manually according to overviews of the day's workload.
Delivery, picking and goods issue Goods issue
Store
Acco Ac coun untt 1
X
Inventory
X
Shipping point
Deliver Deli very y 11 Goods issue
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Billing –
Ways of invoice creation
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Billing document types
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Document structure Header data / Item data Pricing conditions
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Billing methods Individual billing / Invoice split / Collective billing
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Interface to FI / CO
Billing Ways Way s of invoice creation I (basic notes) 1
Sales order-related billing
Sales Sales order order
2
delivery delivery
invoice
delivery delivery
invoice
Delivery-related Delivery-re lated billing billi ng
Sales Sales order order
Billing Ways of invoice creation II 1
Manual billing
Sales order
2
Delivery
Invoice
Creation of delivery by means of billing due list li st Billing due list
Sales Sales order Sales order Sales Sales order Sales order order Sales order order Delivery
Invoice Invoice
Billing Billing document types Sales order
Delivery
Invoice
Credit memo request
Credit memo
Debit memo request
Debit memo
Sales order Delivery
F1/F2
Order / Delivery related invoice
RE/G2
Credit memo/credit memo for returns
L2
Debit memo
Cancellation invoice
S1/S2
Cancellation invoice /credit memo
Pro fo Pro forma rma invoice
F5/F8
Pro forma invoice for sales order and delivery
Billing Document Docum ent structur structure e - Heade Headerr data / Item data Identification number of the payer Billing date Net value of the entire billing bil ling document Document currency Terms of payment and Incoterms Partner numbers, such as the identification number of the sold-to party Pricing elements • • •
Header
• • •
Item 1
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Item 2 Material number 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 •
Item 3
• • • •
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Billing Billing methods I 1. Individual billing Delivery
Invoice
Sales order
3. Collective billing Delivery
Invoice Sales order
Delivery
Delivery
2. Inv Invoic oice e split Invoice Sales order
Delivery Invoice
Sales order
Delivery
Invoice
Billing Billing 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
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the header data appearing in the billing b illing document must agree . the split conditions specified do not apply.
Billing Integration with Fi / Co I Financia Fina nciall accounting accounting (FI) •
• • • •
Invoice
Ballance demands to debtors General ledger Gains Losses Accruals
Account determination
Controlling (CO) • • • • • • •
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Profit center Cost center Extended general ledger Projects Make-to-order sales orders Plant maintenance orders Profitability analysis (COPA) Cost collector
Billing Integration with Fi / Co II – account assignment The system can post entries in the billing documents automatically to the relevant accounts. To do this, it must first carry out account assignment. •
Elements for account assignment:
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Chart of accounts of the company code
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Sales organization
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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 condition technique. •
Thank you for your kind attention!
Dilip Sadh
