Standard Sales Order Processing in ERP 

Purpose

You can use this business process to create, issue, and monitor different types of sales orders. A sales order is a binding agreement between a sales organization and a sold-to party concerning the delivery of products or provision of services. It includes defined prices, product quantities, and delivery dates.

Process Flow

The following business process runs in SAP R/3 Enterprise:

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       1.      Create standard sales order

When a customer accepts a quotation and places a standard sales order, you can create a sales order:

¡        With reference to an inquiry, a quotation or a contract

¡        Without reference to any other documents

       2.      Create cash sales order

You create the order, and the system creates a delivery in the background and prints a cash sale invoice.

       3.      Create rush sales order

You create the order. The customer picks up the goods or you deliver the goods on the same day. However, you create the invoice at a later time.

       4.      Select inquiry, quotation or contract

The system copies the items from the sales document you select.

       5.      Determine business partners

You manually enter one or more partners in the sales order. The system searches for other partners, determines the ship-to party, bill-to party, and payer, and enters them in the document.

       6.      Create order items

You enter products requested by customers. The following functions support this process step:

¡        You enter the material number of a bill of materials that is relevant for sales order processing. The system displays the material that describes the whole bill of materials as a main item.

¡        You can enter items by specifying the material number used by the customer. You can also enter a customer material number in the order view of the sales order.

¡        The system automatically substitutes materials in sales documents through material determination when you process a sales order.

¡        In many industries, it is common in the sales of certain goods for additional goods to be supplied at no extra charge or to supply partial quantities of the goods free of charge.

¡        The system does not allow you to enter materials that are not included in the material listing in a customer’s sales document.

¡        You can store commonly ordered combinations of materials and delivery quantities as item proposals. You can copy items from the item proposal.

¡        You can specify a packing proposal in a sales order. You can determine how the individual items are to be packaged at delivery time.

       7.      Create returnable packaging items

Returnable packaging consists of materials that are stored at the customer location but remain the property of your company. For example, you can process euro-pallets.

       8.      Determine material batches

The following process chain describes an example of batch management when integrated in standard sales order processing:

¡        You have previously agreed with the customer that the batches of the material supplied must meet certain specifications. Material subject to handling in batches is posted.

¡        You run batch determination, as well as a batch availability and usability check.

¡        The system transfers the requirement to production.

       9.      Check availability, schedule order, and create requirement

The system triggers an availability check. If a product is not available on the date requested by the customer, the system automatically displays a selection of delivery proposals during sales document processing. You can choose an alternative delivery proposal.

During transfer of requirements, material requirements planning is informed of the quantities that sales and distribution requires to be able to deliver orders received.

   10.      Determine prices and conditions

The system determines the prices and the value of individual items. Depending on the pricing policies of your company, you may be able to change prices manually during sales order processing. You may, for example, be able to enter or change certain discounts within a specified price range.

   11.      Determine and maintain texts

You use texts in master records and documents to support the exchange of information. You can change the texts in a sales document.

   12.      Check foreign trade data

Legal control is essentially a material flow check, that is, a physical check of the goods that are to be exported. In addition to product and country-specific checks, you have to carry out a transaction-specific check, dependent on both the type of business transaction and customer. After you have legally controlled an individual order item, you either block or release the item.

   13.      Check credit limit

You can specify automatic credit checks that meet your own credit management needs. You can carry out checks at various times during the sales order cycle, from the time the order is received to delivery of the goods.

   14.      Determine and process message output

The system can automatically propose output for a document. You can change this output in an order.

   15.      Monitor returnable packaging stock

The system provides a stock overview, that is, an overview of the returnable packaging stock of a material at all organizational levels. This distinguishes returnable packaging stock from the plant stock and storage location stock views in the material master.

   16.      Monitor sales order processing

The system lists sales order documents that you created within a certain time period and displays information about a sales document you are working on.

Result

When the material availability date or the transportation scheduling date for a sales order has been reached, the sales order is due for delivery processing.