Transcript Enterprise Engineering with R/3 4.0B

Enterprise Wide Information Systems
Customer Order Management
Instructor: Richard W. Vawter
University of
Southern California
Objectives
 After studying the Customer Order Management
Process, you should be able to:

Describe the “best business process” of customer order
management using an ERP system.

Discuss the integration points with financial accounting,
materials management, and production planning.

Discuss the reporting and analysis tools of R/3 used in the
customer order management cycle.

Execute the sales order processing cycle in the R/3 system.
University of
Southern California
Topics
 Organizational Elements and Master Data
 Business Process for Customer Order Management
 Reporting and Analysis
University of
Southern California
Customer Order Management Process
The SAP R/3 application
modules that support
most of Customer Order
Management processes
are:


Sales &
Distribution
Materials
Mgmt.

Financial Accounting

Controlling

Production Planning
Controlling
Production
Planning
Fixed Assets
Mgmt.
R/3
Client / Server
ABAP/4
Sales and Distribution
Materials Management
Financial
Accounting
Quality
Mgmt.
Plant
Maintenance
Human
Resources
Project
System
Workflow
Industry
Solutions
University of
Southern California
Organizational Elements in COM
 The Organizational Elements in Customer Order
Management:
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Southern California
Sales Area
University of
Southern California
Master Data
The following master data is used in the Customer Order
Management cycle:

Customer master

Material master

Condition Pricing Records
University of
Southern California
Master Data: Customer Master
Customer
Sales organization
Distribution channel
Division
C1
1000
12
00
General data
Screen
Views
Screen
Views
Address, Control data, Marketing,
Payment terms, Unloading points,
Foreign trade, Contact person
Sales area
Sales, Shipping, Billing, Output,
Partner functions
Valid for both
accounting and sales
Valid for Sales/Distribution
Dependent upon:
- Sales organization
- Distribution channel
- Division
Company code data
Screen
Views
Account management, Payment
transactions, Correspondence,
Insurance
Valid for accounting
Dependent upon:
- Company code
Material Master: Material Master
 The material master contains
all data required to define and
manage material.
 It integrates data from
engineering, manufacturing,
sales and distribution, purchasing,
accounting and other departments.
Basic data
Purchasing data
Accounting data
Sales data
Manufacturing data
(etc.)
 The material master is used as a source of data for
sales order processing throughout the customer order
management cycle.
University of
Southern California
Material Master Primary Views: COM
 Basic Data
 Purchasing
 Material Resource Planning
 Sales
 Stocks in Inventory
 Work Scheduling
 Accounting
 Quality Management
 Storage
 Forecasting
 Warehouse Management
 Classification
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Southern California
Material Master Organizational Levels
 The material master structure is hierarchical. This
allows the material to be defined differently depending
on where it is produced or who sells it.
General data
Client
(Company Wide)
Material number
Description
Units of measure
Engineering data
Plant-specific data
Plant
Planning data
Manufacturing data
Purchasing data
Storage location specific data
Stock quantities
Storage Location
Represents legally
and organizationally
independent users of
the system
Represents operating
units or places of
business of a
company
Represents the places
where materials are
stored in that facility
Condition Pricing Records
Conditions
 Pricing is carried out
automatically in R/3
based on predefined
prices, discounts,
surcharges, freight
and taxes.
 These records are
called condition
records and are stored
as SD master data
Prices
•
•
•
•
Price list
Material price
Customer-specific
Other
Discounts / surcharges
•
•
•
•
•
•
•
Customer
Material
Price group
Material pricing group
Customer pricing group
Customer / material
Others
University of
Southern California
Topics
 Organizational and Master Data
 Business Process for Customer Order Management
 Reporting and Analysis
University of
Southern California
Business Processes in COM Cycle
 The Customer Order Management Cycle (COM)
consists of six processes:
1. Pre-Sales Activities
2. Sales Order
Processing
3. Inventory
Sourcing
4. Delivery
6. Payment
5. Billing
University of
Southern California
Business Process Flow in SAP
 The main documents and transactions in the Customer
Order Management process are:
Order
Delivery
Invoice
Payments
Pre-sales
Document
Document flow
flow of
of aa sales
sales doc.
doc.
........ Order
Order
........ Delivery
Delivery--Picking
Pickingrequest,
request,Goods
Goods
request,
request,Delivery
Delivery
........ Invoice
Invoice
........ Accounting
Accounting
University of
Southern California
Creating Sales Orders
The Sales order contains the information necessary to
process the Customer Order Management cycle.
Order
Delivery
Invoice
Payments
Inventory Sourcing
University of
Southern California
Sales Order Processing
 Customers place orders with a customer service
representative.
 Standard orders normally contain:

Customer and item information

Pricing for each item

Delivery schedules and information

Billing information
University of
Southern California
Types of Sales Documents
 Each type of sales document represents a different
type of sales transaction.
 Different types of sales transactions have different
business requirements.
Credit / debit
memo requests
Consignment
order
Standard
order
Sales
document
types
Return
Scheduling
agreement
Cash order
Rush order
Free of charge
delivery
University of
Southern California
Functions of Sales Documents
 The system may perform different functions with each
transaction based upon the sales document type chosen.
Delivery
scheduling
Transfer of
Requirements
Availability
check
Sales
document
Text
Pricing
Sales Info.
System
Output
Credit Check
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Southern California
Inventory Sourcing
 Inventory sourcing occurs when the order is created or
changed (and again when the delivery process begins).
 Inventory sourcing determines:

If the product is available (availability checking)

The date the product is confirmed for delivery

How the product will be supplied
University of
Southern California
Sales Order Integration
FI
MM
FI
PP
SD
Credit Limit Checking
Sold to party: C100
Item Material Qty
10
6301
10
20
6412
10
30
1507
25
Dynamic Availability Check
Cash Forecast
Planning Strategies
Std. Order
Sold to party: C100
Item
10
20
30
Material Qty
6301
10
6412
10
1507
25r
Orde
University of
Southern California
Delivery Creation
Order
Delivery
Invoice
Payments
Next time we will pick up with this second
transaction in the Customer Order Management
process - creating the Delivery document
Inventory Sourcing
University of
Southern California