 SAP AG 2007 Basic Sales Process Additional Documents and Functionalities of Sales Contents: Sales - A/R

 SAP AG 2007 Model the basic sales process in the system Use additional functionalities of sales Use additional documents of sales At the conclusion of this unit, you will be able to: Sales – A/R: Unit Objectives

 SAP AG 2007 The company has set customer satisfaction as its top priority and wants to streamline its processes in sales to make sure that its customer’s demands can be met as quickly as possible. Sales – A/R: Business Scenario

 SAP AG 2007 Model a basic sales process in SAP Business One Use the different transactions of Sales - A/R At the conclusion of this topic, you will be able to: Basic Sales Process: Topic Objectives

 SAP AG 2007 Document Flow in Sales (1) Order General Ledger (Value) Quotation Delivery Warehouse (Quantity) 1.) 2.) A/R Invoice 3.) >Quotations, orders, and delivery notes are optional, >If you do not refer to a delivery note when you post an A/R invoice, the A/R invoice affects your stock. Under order creation *Available quantity is reduced and *Committed quantity is increased Under delivery creation * In Stock quantity and the Committed quantity is reduced Avail = in-stock + ordered -committed Under invoice creation In Stock quantity is reduced (if you did not create a delivery note beforehand)

 SAP AG 2007 Document Flow in Sales (2) All documents, for which you have not created a follow-on document have open status. Open documents remain open until you have transferred all the items to a follow-on document, or until you manually close or reverse them. You cannot make any changes to base documents that you have already copied completely to a follow-on document.

 SAP AG 2007 Sales Documents and Their Properties (1) Delivery Order Quotation Order Quotation A/R Reserve Invoice Quotation XX A/R Credit Memo Returns X (If No Reference to Delivery) X (Goods Issue) XX X Quantities Posted in Inventory Management Sales Document for Correction Values Posted in General Ledger Reference When Added Change/Reverse Sales Document must be Created in the System A/R Invoice DeliveryOrderQuotation 1.) 2.) 3.) 4.) 5.) 6.) (X)

 SAP AG 2007 Sales Documents and Their Properties (2) 2.) A quotation and an order can be changed or cancelled after they have been created. To disable the possibility to make changes to sales orders: choose Administration  System Initialization  Document Settings, on the Per Document tab page for the Document Sales Order deselect Allow Changes to Existing Orders. You can not change deliveries or A/R invoices after they have been added. 3.) If you need to correct a delivery, you have to do that by creating a return. If you need to correct a A/R invoice, you have to do that by creating a A/R credit memo. 5.) When you create a delivery, the goods issue is posted as well. The In Stock quantity is reduced. When you create an A/R invoice without reference to a delivery, the goods issue is posted. The In Stock quantity is reduced. 6.) Values from both the delivery and the A/R invoice are posted in the general ledger. The goods issue from both deliveries and A/R invoices (with no reference to a delivery) create journal entries which post to the general ledger. An A/R invoice creates entries for sales revenue and the amount the customer owes.

 SAP AG 2007 Postings in Sales Process for Inventory Items Purchased Item Fixed Assets Inventory Item Sales Item 100 Stock Acc.Cost Acc. Sales Order Delivery A/R Invoice Revenues Account Sales Revenues – EU Foreign Revenues Acc. Customer 100 Stock account and cost account are retrieved from the Stock Account field and the Cost Account field on the Inventory tab of the item master record. Revenues account is retrieved from the Inventory tab of the item master record. *If the customer is located in the same country, the account from the Revenues Account field is used. *If the customer is located in a European Union (EU) country, the account from the Sales Revenue - EU field is used. If the customer is located in a non-EU foreign country, the account from the Foreign Revenues Account field is used To create an order, choose Sales – A/R  Sales Order. To create a delivery, choose Sales – A/R  Delivery. To post an A/R invoice, choose Sales – A/R  A/R Invoice.

 SAP AG 2007 Postings in Sales Process for Non-Inventory Items Purchased Item Fixed Assets Inventory Item Sales Item Sales Order Delivery A/R Invoice Revenues Account Sales Revenues – EU Foreign Revenues Acc. Customer 100 When you sell items that you do not manage as inventory items (for example, services that you created as items), the system does not trigger a posting for the delivery. Actually, you can skip the delivery altogether. The A/R invoice is posted the same way as it is posted for inventory items.

 SAP AG 2007 Sales Process with Picking (1) Order Quotation Open Released Picked Deliver Delivery A/R Invoice List of orders to be released or picked. Pick List 2.) 3.) 4.) Pick Pack Manager 1.) 5.)

 SAP AG 2007 Sales Process with Picking (2) Choose Inventory  Pick and Pack  Pick Pack Manager 1.) Status Open: This window displays all the items that are still open. They have not been released, picked or delivered yet. In this window you select the orders and quantities to be released. Quantity To Release = In Stock – Released – Picked 2.) Status Released: This window displays all the pick lists in status released. You can display the data in two views – Detailed and Summary. Quantity Available to Pick = In Stock – Picked 3.) To get the pick list, click in the list of the released orders into the orange arrow link next to the pick no. or choose Inventory  Pick and Pack  Pick List. Enter the picked quantity. 4.) Status Picked: This window displays the items that are already picked but are not delivered yet. 5.) In the list of the picked items choose the Deliver button to create the deliveries. You can create the deliveries also from the open or released list.

 SAP AG 2007 Sales Process with Packing Order Quotation Delivery A/R Invoice Define Packages Pick List Existing Packages Box Available Items A pcs. Package Content A pcs. ><>< 3.) 2.) 1.) In SAP Business One, the delivery or A/R invoice may serve as the pack document. 1.) In the delivery choose Goto  Packaging or right mouse click to get to the Packages - Setup window 2.) Existing Packages: Enter the packages that you want to use for packing the items of the delivery. You can define Package Types in Administration  Setup  Inventory  Package Types. Available Items: Lists items and quantities that you can pack into the packages. 3.) Select the items and enter the quantities that you want to assign to the package selected in the Existing Packages list above. Package Contents: Shows the content of the package that is selected in the Existing Packages list above.

 SAP AG 2007 Describe the additional documents and functions used in the sales process Follow the changes in stock during the sales process Display and evaluate sales analyses Model sales for one-time customers At the conclusion of this topic, you will be able to: Additional Documents and Functionalities of Sales: Topic Objectives

 SAP AG 2007 Document Generation Wizard Deliveries to a customer Summarized A/R Invoice Invoices need to be produced All deliveries can be placed into one invoice per customer. Once the Document Generation Wizard has run the process, it is irreversible. Note that the wizard does not handle customers defined as multi-currency

 SAP AG 2007 Document Generation Wizard Steps Document Generation Options Select Customers Messages and Alerts Save and Execute Options Summary Report Base Documents Target Documents Consolidation Options Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 (which base docs to be consolidated to target doc) (e.g. response to missing data, deviation from credit line) (summary of target docs per customer, error n warning messages)

 SAP AG 2007 Sales to One-Time Customers (A/R Invoice + Payment) – (1) Menu Administration Sales Default Customer for A/R Invoice + Payment C9999One-Time Customer Setup  Financials  G/L Account Determination C9999 A00001 Customer Item No. Item Description A00002 Twin Seater Three Seater... Michael Kramer Main 9855 Chicago TX Name Ship To Balance Due USD Add A/R Invoice + Payment Payment Means Check Bank Transfer Credit Card Cash USD USD USD Balance Due

 SAP AG 2007 Sales to One-Time Customers (A/R Invoice + Payment) – (2) One-time customer Prerequisites  The customer pays the entire amount at once (for example, in a shop).  The customer does not need documents such as an order or delivery note document. Settings in the System  Maintain a representative master record for one-time customers in the system (Administration  Setup  Financials  G/L Account Determination, choose the Sales tab page, then choose Default Customer for A/R Invoice + Payment)  The system automatically calls up this customer when you enter the invoice. You cannot change the customer number in the document. You can, however, change the customer's name and address in the fields provided.

 SAP AG 2007 Functions in Sales – A/R XX XXXX XXXX XXXX X(X) XXX A/R InvoiceDeliveryOrderQuotation Serial Number and Batch Management Display Gross Profit and Last Prices Report Create Document Drafts Create Activities Link to Transaction Journal Do Credit Limit Check (X) 1.) 2.) 3.) 4.) 5.) 6.) (choose File  Save as Draft) (Goto  New Activity or a right mouse click) (a right mouse click) 2.) To display the gross profit in a document choose Goto  Gross Profit or choose right mouse click. To display the Last Prices Report in a document put the cursor in the price field and choose Goto  Last Prices or right mouse-click on the unit price field.

 SAP AG 2007 Alternative Items (1) Sales- or Purchasing Document A00012 Item No. Description … Quantity WH 1.) E4002 Vendor/Customer Alternative Items B04711 Item No. Remarks … Match Factor 100,00 A00012 Item No. F00771… 80,00 B04711 Item No. Available 25 A00012 Item No. F Alternative Items – Selection Criteria Match Factor 100,00 80,00 01 WH 2.)

 SAP AG 2007 Alternative Items (2) 1.) Define alternative items by choosing Inventory  Item Management  Alternative Items. Match Factor: Higher value represents higher match. In our example, item A00012 has two alternative items – B04711 and F The matching factor defined for item B04711 is 100 and for item F00771 – 80. If there is no item A00012 in the warehouse, item B04711 can replace it because it has the highest matching factor. Reverse Link 反向鏈接 : Create a reverse relationship between the alternative item and the original item. This means that both items are defined as alternative items for each other. 2.) To select alternative items while you create documents in sales or purchasing, choose: Goto  Alternative Item or Do a right mouse click in the item line.

 SAP AG 2007 Item Availability Check in Sales Orders Sales Order A00001 Item No. Description … Quantity Document Per Document WH A1000 Administration  System Initialization  Document Settings Sales Order Activate Automatic Availability Check Document Settings Item No. Warehouse Item Availability Check 01 Quantity Ordered 50 Pair = 100 pieces Quantity Available 28 pieces Select Action: Continue Change To Available Quantity Display Quantities in Other Warehouses Display Alternative Items Delete Row If Order Quantity > Quantity Available 1.) 2.) 3.) If automatic availability check for sales orders is not activated, get to the Item Availability Check window by choosing Goto  Item Availability Check or with a right mouse click in the item line.

 SAP AG 2007 Returns Order Delivery Returns Quotation 50 Stock AccountCost Account 50 Cost Account 50 Sales Returns General Ledger (Value) Warehouse (Quantity) For legal reasons, you cannot change or delete deliveries and customer invoices that have already been entered in the system. Manage the inventory of the damaged goods separately from the undamaged goods, define a special warehouse for the damaged goods and enter this warehouse in the return document Sales returns account and the cost account are retrieved from the Sales Returns field and the Cost Account field on the Inventory tab of the item master record

 SAP AG Stock Acc.Cost Acc. Credit Memo Sales Order General Ledger (Value) Warehouse (Quantity) Delivery Quotation A/R Credit Memo A/R Invoice Sales Revenues Customer 100 Customer 100 Revenues Acc. 50 Cost Acc. Stock Acc. 50 IF customer returns items that do not refer to a specific delivery, post this quantity directly to the warehouse without referencing a preceding document. A/R credit memo with reference to the returns delivery ensures that system credits the values to the customer

 SAP AG 2007 A/R Reserve Invoice (do not change the warehouse stock) Order Accounting (Value) Quotation A/R Reserve Invoice Warehouse (Quantity) 1.) Delivery 2.) 3.) The Available quantity is reduced by the sales order quantity The Available quantity is reduced if you did not create a sales order beforehand If with reference to the A/R reserve invoice. This reduces the In Stock quantity A/R reserve invoices create value-based postings.

 SAP AG 2007 Stock Changes in Sales Quotation Order +- Delivery for order -- Separate delivery (w/o reference to order) -- A/R Invoice for delivery Separate A/R Invoice (w/o reference to delivery) - - Returns ++ A/R Credit memo ++ Sales / AR Model Report: Inventory Status In Stock-Committed+Ordered=Available Transaction A/R Reserve Invoice for Order Pick List A/R Reserve Invoice (w/o reference to order) Delivery for A/R Reserve Invoice Choose Inventory  Inventory Reports  Inventory Status Available = In Stock” - “Committed” + “Ordered”

 SAP AG 2007 Link Sales Order to Purchase Order (1) Contents Accounting Purchase Orders Logistics Sales Order Add/Update Purchase Order Confirmation >>> >> Item No. A00001 BP Code WH QtyPrice A00002 Item A00001 Card Code WH QtyPrice A00003 S1000 S S A Data from Sales Order Data for Purchase Order Move All Items Move Only Selected Items

 SAP AG 2007 Link Sales Order to Purchase Order (2) Select the checkbox of the Purchase Orders field on the Logistics tap of the sales order to automatically create purchase orders for the items of the sales order For purchase order that contains more than one warehouse, the system will prompt you to create child purchase orders. SAP Business One creates separate child purchase orders for each warehouse. Initial Setting: Administration -> System Initialization ->Document Settings, Per Document tab page. Choose Purchase Order and select Split PO.

 SAP AG 2007 Drop Ship (1) Sales Order A00001 Item No. Description … Quantity 2002 Add Menu Setup Batches Inventory Warehouses Drop Ship General 02 WH Purchase Order Confirmation A00001… 20 Administration

 SAP AG 2007 Drop Ship (2) In the drop ship process the stock does not arrive and exit from the company. The company serves only as an agent and receives a commission on the process. Choose Administration  Setup  Inventory  Warehouses. Select the checkbox of the field Drop Ship to define the warehouse as a drop ship warehouse. When adding a sales order you can choose the drop ship warehouse in the item line. After adding the sales order the Purchase Order Confirmation window will open only for the lines where the drop ship warehouse was chosen.

 SAP AG 2007 Sales Analyses in SAP Business One Examples What are the sales figures per customer? Which customer is the most profitable? Which product is most successful? Which is the most profitable? How are the sales figures distributed among the quarters? Which products does a certain customer prefer? How successful is our sales staff? How well does a particular sales employee sell one item in comparison to another one? How are the sales figures per employee and item distributed over the entire year? Customers Items Sales employees A combination of the above Sales analyses provide information on sales according to the following criteria: To quickly identify weak points in your sales and product portfolio

 SAP AG 2007 Open Items List Open Sales Quotations Open Sales Orders Open Deliveries Open … Open Items List: Sales - A/R  Sales Reports  Open Items List

 SAP AG 2007 Model the basic sales process in the system Use additional functionalities of sales Use additional documents of sales You are now able to: Sales/AR: Unit Summary