Transcript Customer Order Management Enterprise Wide Information Systems (Continued) Instructor: Richard W. Vawter

Enterprise Wide Information Systems
Customer Order Management
(Continued)
Instructor: Richard W. Vawter
University of
Southern California
Topics
 Organizational and Master Data
 Business Process for Customer Order Management
 Reporting and Analysis
University of
Southern California
Delivery Creation
Order
Delivery
Invoice
Payments
Inventory Sourcing
University of
Southern California
Delivery Overview
Within the delivery process the following steps are
executed either automatically or manually.
Completed
Completed
Sales
Sales Order
Order
Availability
Availability
Check
Check
Delivery
Delivery
Document
Document
Pick
Pick (through
(through aa transfer
transfer
order)
order) &
& Pack
Pack
Post
Post Goods
Goods Issue
Issue
Update
Update Inventory
Inventory
Warehouse
Shipping
Shipping
University of
Southern California
Deliveries and Shipments
FI
WM
MM
Sold to party: C100
Item Material Qty
10
6301
10
20
6412
10
30
1507
25
Packing
List
Order
 Upon the creation of the delivery, the customer request
starts to be processed in the warehouse.
 A cost of goods sold and inventory valuation posting is
made in financial accounting when goods issue are
processed integrating SD with MM and FI.
Issuing Invoices
Order
Delivery
Invoice
Payments
Inventory Sourcing
University of
Southern California
Billing
 Billing Supports:

Creating invoices for deliveries and services

Creating credit and debit memos on the basis of requests

Transferring posting data to financial accounting
 Invoicing usually occurs after the product has been
shipped to the customer.
 All the information entered for the
sales and delivery documents are
transferred to the invoice.
Invoices
Staffel Motorcycle Company
One order of 16 motorcycles
for the Sante Fe store,
Price per bike $15,000
times 16 equals $240,000
price is equal to our
discussion about the new
Feldwebel Bike with 1600cc
of horsepower.
University of
Southern California
Invoicing and Profitability
Delivery
Delivery
Delivery
XXXX MC Co.
Please accept our
delivery of our new
1600cc Motorbike,
any questions
please contact us
at (800) 555-XXXX
XXXX MC Co.
Please accept our
delivery of our new
1600cc Motorbike,
any questions
please contact us
at (800) 555-XXXX
XXXX MC Co.
Please accept our
delivery of our new
1600cc Motorbike,
any questions
please contact us
at (800) 555-XXXX
12/1…. 6 bikes
12/5…. 5 bikes
12/21…. 7 bikes
Individual
Invoice
Financial
Accounting
Collective
Invoice
A/R
Profitability
Analysis
G/L
Periodic
Invoice
Business
Segment
Controlling - Profitability Analysis (CO-PA)
 Once transferred to profitability analysis, there are
many ways in which the revenues are analyzed
depending on the requirements of the organization.
 The CO-PA tool allows you to look at the profitability of
a company’s customers using real-time information.
 You can determine which elements of the market are
more favorable or more costly, and allow the
organization to focus its effort in a specific direction.
University of
Southern California
Customer Payment
Order
Delivery
Invoice
Payments
Inventory Sourcing
University of
Southern California
Customer Payment
 The final step of the Customer Order Management cycle.
 The Customer Payment step includes:

Posting payments against invoices

Reconciling differences, if necessary
 The processing of the customer payment is done in
accounts receivable against open items.
University of
Southern California
Summary of the Business Process Flow
 Document represent transactions in the R/3 system.
 The transactions form a chain of related documents.
 The entire chain of documents creates a document flow.
 The system copies data from one document into another to
reduce data entry and make problem resolution easier.
Order
Delivery
Invoice
Payments
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
Topics
 Organizational and Master Data
 Business Process for Customer Order Management
 Reporting and Analysis
University of
Southern California
Reporting and Analysis
 Standard Reporting

‘List documents’ and master data.

Provides analysis through sorting and totals.

Displays details by drilling down to the original documents.
 Sales Information System

Extracts and stores performance measurements.

Allows you to summarize and drill down by selected
characteristics.

Provides basis for analysis and support for management
decisions.

Allows you to export data into Excel or other PC files.
University of
Southern California
Sources of Information in Sales & Distribution
The Logistics Information Library allows you to integrate
standard and flexible analyses as well as your own reports.
Info library
Standard
analyses
SIS
Flexible
analyses
ABAP
queries
Info structure
The Sales Information System
(SIS) summarizes transactional
data (e.g. sales history for the last
month).
Master and
document data
SD lists
& reports
SAP provides
standard list
functionality to
create worklists
in sales, delivery,
billing, and
customer
payment.
University of
Southern California
Lists
 The R/3 System provides
lists to support the entire
COM cycle.
 They are simply views of
data generated during the
cycle.
 You can drill down on the
data to view the original
documents
Sold-to
Sold-to party:
party: C1
C1
Sold-to
Sold-to party:
party: C1
C1
Sales
Sales order:
order:
Sales
Sales order:
order:
Sales
order:
Sales order:
Functions:
Functions:
-- Sort
Sort
-- Find
Find
-- Sum
Sum up
up
1241
1241
1549
1549
1600
1600
-- Additional
Additional fields
fields
-- Change
document
Change document
-- Document
Document status
status
University of
Southern California
Logistics Information System (LIS)
 The LIS exists for the entire logistics system in R/3
 The LIS contains several information systems such as:

Sales Information System

Inventory Controlling

Purchasing Information System

Shop Floor Info System
 The LIS extracts data from the operative applications;
offering it in many different views, the depth of which
is determined by the user.
Logistics
Information
Systems
Logistics Information Library
Sales
Information
System
Purchasing
Information
System
Inventory
Controlling
Shop Floor
Information
System
Maintenance
Information
System
Quality Mgmt
Information
System
R/3
Sales and
Distribution
(SD)
Materials
Management
(MM)
Production
Planning
(PP)
Plant
Maintenance
(PM)
Quality
Management
(QM)
Logistics
Processing
Systems
Sales Information System (SIS)
 The purpose of the SIS is to
provide management level
reporting and analysis.
 The SIS tool is organized
into a variety of drill down
lists, allowing you to
display the level of detail
that meets your reporting
requirements.
Functions
•
•
•
•
•
Additional
Information
• Material master
• Customer master
• Documents
ABC Analysis
Classification
Dual Classification
Planned-Actual comparison
Correlations
Customer analyses
Drilling
down by
customer
Sales
Org.
1000
Order value
100,000
Sales Org.: 1000
Customer PO Value
Drilling
down by
period
Smith Inc. 60,000
Brown Inc. 40,000
Sales Org.: 1000
Customer: Smith Inc.
Month
PO Value
Feb. 1998
Mar. 1998
25,000
35,000
Invoice
Amount
90,000
Invoice
Amount
50,000
40,000
Invoice
Amount
20,000
30,000
University of
Southern California
Summary of Customer Order Management
 The basic COM process includes the following:

order

delivery

invoice

payments.
 Some Sales and Distribution integration points are with FI,
MM, and PP include:

credit limit check

inventory sourcing (availability check)

cash forecast

updating inventory balances

updating G/L accounts

creating demand requirements

transferring posting data to financial accounting,

transferring information to profitability analysis
 The two reporting tools used in the COM environment are:

Standard Reporting - Lists

Logistics Information System - Sales Information System
University of
Southern California