University of Southern California 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 and Distribution Materials Management Financial Accounting Controlling Production Planning

University of Southern California Organizational Elements in COM The Organizational Elements in Customer Order Management:

University of 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

Master Data: Customer Master CustomerC1 Sales organization1000 Distribution channel12 Division00 General data Address, Control data, Marketing, Payment terms, Unloading points, Foreign trade, Contact person Address, Control data, Marketing, Payment terms, Unloading points, Foreign trade, Contact person Valid for both accounting and sales Valid for both accounting and sales Screen Views Sales area Sales, Shipping, Billing, Output, Partner functions Sales, Shipping, Billing, Output, Partner functions Valid for Sales/Distribution Dependent upon: - Sales organization - Distribution channel - Division Valid for Sales/Distribution Dependent upon: - Sales organization - Distribution channel - Division Screen Views Company code data Account management, Payment transactions, Correspondence, Insurance Account management, Payment transactions, Correspondence, Insurance Valid for accounting Dependent upon: - Company code Valid for accounting Dependent upon: - Company code Screen Views

University of Southern California 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. The material master is used as a source of data for sales order processing throughout the customer order management cycle. Basic data Purchasing data Accounting data Sales data Manufacturing data (etc.)

University of Southern California Material Master Primary Views: COM Basic Data Material Resource Planning Stocks in Inventory Accounting Storage Warehouse Management Purchasing Sales Work Scheduling Quality Management Forecasting Classification

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. Plant Storage Location General data Material number Description Units of measure Engineering data Plant-specific data Planning data Manufacturing data Purchasing data Storage location - specific data Stock quantities 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 Client (Company Wide)

University of Southern California Condition Pricing Records Conditions Price list Material price Customer-specific Other Customer Material Price group Material pricing group Customer pricing group Customer / material Others PricesDiscounts / surcharges 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

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:

University of Southern California Business Process Flow in SAP The main documents and transactions in the Customer Order Management process are: Pre-sales

University of Southern California Pre-Sales Activities Pre-Sales activities may include: Mailing list Phone call records kept on the system Inquiries Quotations

University of Southern California Creating Sales Orders The Sales order contains the information necessary to process the Customer Order Management cycle.

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. Scheduling agreement Scheduling agreement Cash order Rush order Free of charge delivery Return Consignment order Consignment order Credit / debit memo requests Credit / debit memo requests Standard order Sales document types

University of Southern California Functions of Sales Documents The system may perform different functions with each transaction based upon the sales document type chosen. Transfer of Requirements Transfer of Requirements Pricing Sales Info. System Credit Check Output Text Availability check Delivery scheduling Delivery scheduling Sales document

University of 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

University of Southern California Delivery Creation Next time we will pick up with this second transaction in the Customer Order Management process - creating the Delivery document