1. 1 Right Solution, Right Time, Right Price Sales Order Processing

2. 2 Agenda I.General Information for Sales Order Processing II.Sales Inquiry III.Quotations IV.Sales Orders V.Inventory/Availability Reporting VI.Consignment Orders VII.Reports/Lists VIII.Complaints Processing IX.Pro-Forma Invoice Creation X.Questions / Review

3. 3 I. General Information for Sales Order Processing

4. 4 Organizational Elements Quick Review Semiconductor Group (YSG) (04) Drives (01) General Motion (02) Machine Tool (03) Service House Accounts (05) Columbus (06) Switch (07) DISTRIBUTION CHANNEL DIVISION PARTS SALES SERVICE ORDER REPAIR ORDER SALES ORGANIZATION Sales Area PARTS SALES SERVICE ORDER REPAIR ORDER PARTS SALES SERVICE ORDER REPAIR ORDER PARTS SALES SERVICE ORDER REPAIR ORDER PARTS SALES SERVICE ORDER REPAIR ORDER PARTS SALES SERVICE ORDER REPAIR ORDER PARTS SALES SERVICE ORDER REPAIR ORDER SPECIAL REPORT TOTAL PARTS SALES TOTAL SERVICE ORDERS TOTAL REPAIR ORDERS Sales Organization (0010 – Americas) Distributor Distribution Channel (02) Direct Distribution Channel (01)

5. 5 Business Processes Cycle Quotation Pre-Sales Activities Sales Order Processing Inventory Sourcing Inventory Sourcing Delivery Billing Payment Invoice I. General Information for Sales Order Processing

6. 6 During sales order processing, the system carries out basic functions, such as: Determines Pricing Decides Delivery Requirements Decides Requirements for creating invoices Updates Document Flow Updates Sales reporting Carries out availability check I. General Information for Sales Order Processing Basic Functions Within Sales Order Processing

7. 7 Sales Documents I. General Information for Sales Order Processing

8. 8 There are four distinct groups of sales documents: Pre-Sales Activity: Inquiries, and Quotations Sales orders Complaints, encompassing Subsequent Delivery Free of Charge order, Credit /Debit memo requests and Return Orders. Sales Documents I. General Information for Sales Order Processing

9. 9 There are three distinct control elements within a sales documents: Order type controls:Number range for the order Incompletion procedure at the header Output determination procedure Item number increment Document pricing procedure Item category controls:Should pricing be carried out Is item to be invoiced Which fields appear on the incompletion log Partner determination Schedule item category controls: The correct A/R account cost will hit Especially important in internal order processing Sales Documents I. General Information for Sales Order Processing

10. 10 From the sales document, you can create and process deliveries and billing documents. In addition, some sales documents, such as rush orders, automatically trigger the creation of delivery documents. Sales Documents I. General Information for Sales Order Processing

11. 11 All sales documents have basically the same structure. They are made up of: Header Line Item Schedule Line How Sales Documents are Structured How Sales Documents are Structured Sales Document Header Item 1 Schedule line 1 Item 2 Schedule line 1 I. General Information for Sales Order Processing

12. 12 Header data The general data that is valid for the entire document is recorded in the document header. For example, Number of the sold-to, ship-to party Purchase Order Sales Area Data Payment Terms Pricing elements for the entire document Order Status Industry (add. data A–customer group 1) Application (add. data A–customer group 2) Sales Document Header Item 1 Schedule line 1 Item 2 Schedule line 1 Sold-to party: 1000006 Req. Delivery Date: 7/28/00 Ship-to party: 1000006 Currency: USD I. General Information for Sales Order Processing

13. 13 Item data Whereas data in the document header applies to all items in the document, some data applies only to specific items or can be overridden by the item. This data is stored at item level and includes the following: Material number and data First delivery date Reason for rejection Partner determination (an alternative ship-to party or forwarding agent (carrier) can be defined for a particular item) Item level text Item level status Plant and storage location specifications Pricing conditions for the individual items Item Category Sales Document Header Item 1 Item 2 I. General Information for Sales Order Processing

14. 14 Schedule line data The schedule line contains all the data that is needed for a delivery. For example, a customer orders 20 units of a particular material which you enter as one item in the sales order. However, you can only deliver 10 pieces now and the remaining 10 pieces next month so you will confirm two delivery dates. The data for these deliveries (dates, confirmed quantities) are stored in two separate schedule lines. (Automatic line splits) In sales documents where delivery data is not relevant, for example, contracts, credit and debit memo requests, the system does not create any schedule lines. Data recorded in the schedule lines includes the: Schedule line quantity Delivery date Confirmed quantity Sales Document Header Item 1 Schedule line 1 Item 2 Schedule line 1 I. General Information for Sales Order Processing

15. 15 Data From Master Records When you create a sales document without referring to a preceding document, the system copies the following data from the master records: I. General Information for Sales Order Processing Data about the sold-to party and other partners from the customer master records Item data from the material master record Data from any relevant customer- material information records (customer specific part numbers)

16. 16 Data from Preceding Documents If you create a sales document with reference to a preceding document, the system copies nearly all the data from the preceding document, depending on copy control setup for document combinations being referenced. The data in the preceding document originally comes from the customer and material master records. Because the data is copied from the preceding documents into the sales document, any changes that have been made to the master data records since the preceding document was created are not included in the sales document. If, when you create with reference, you add another item to the document that was not in the preceding document, the system determines the data for the new item from the master records, such as the material master or info record. I. General Information for Sales Order Processing

17. 17 I. General Information for Sales Order Processing What is the difference between an Inquiry and a Quotation? Inquiry – Non-Binding Agreement For example, a customer inquires whether we have a certain product in our warehouse, how much it will cost, or whether the product will be available for a certain date. The inquiry will not be sent to the customer. Quotation – Binding Agreement from A quotation presents the customer with a legally binding offer for product or service within certain fixed conditions.

18. 18 Reporting and Analysis in SAP R/3 Standard Reporting –Lists documents and master data –Provides analysis through sorting and totals –Displays details List Processing –Lists selected documents –Allows you to branch to documents and return to list –Helps organize work I. General Information for Sales Order Processing

19. 19 Sales Document Icons Sales and Distribution These Icons appear on most Sales Documents General Icons Status Overview Display Sales Summary Display Sold-to Party Header Output View Reject Document List Sales Orders Display Item Detail Create Item Delete Item Item to top Display Document Flow Check Item Availability Page Down New Session View Availability Item Conditions

20. 20 Sales Order Processing What 3 organizational elements make up the Sales Area? Name the 2 distribution channels? Name the 7 different division? Name 2 things order type controls?

21. 21 II. Sales Inquiries

22. 22 Inquiry II. Sales Inquiries Used to store pre-sales data. There are a wide range of functions defined for managing and monitoring these documents. Information gained from these documents can be used to gauge different market, sales, inventory trends. Each document has a validity date.

23. 23 Creating a Sales Inquiry Menu Path Logistics >> Sales and Distribution >> Sales >> Inquiry >> VA11 - Create Transaction Code: VA11

24. 24 Step 1 – Initial Screen a.Enter IN for Inquiry Type Step 1 – Initial Screen a.Enter IN for Inquiry Type a.

25. 25 Step 1 – Initial Screen a.Enter IN for Inquiry Type b.Click on the Enter button. Step 1 – Initial Screen a.Enter IN for Inquiry Type b.Click on the Enter button. b.

26. 26 Step 2 – Completing the Inquiry a.Enter the Customer Code for the Sold-to party. You can also use the Matchcode button to search from a list. Step 2 – Completing the Inquiry a.Enter the Customer Code for the Sold-to party. You can also use the Matchcode button to search from a list. a.

27. 27 Step 2 – Completing the Inquiry a.Enter Sold-to Party b.Ship-to Party will default in from the customer master. If there are multiple ship to partners attached to a sold to you will get a selection box. Step 2 – Completing the Inquiry a.Enter Sold-to Party b.Ship-to Party will default in from the customer master. If there are multiple ship to partners attached to a sold to you will get a selection box. b.

28. 28 Step 2 – Completing the Inquiry a.Enter Sold-to party. b.Enter the Ship-to Party c.Enter the Requested Delivery Date and the validity dates. Step 2 – Completing the Inquiry a.Enter Sold-to party. b.Enter the Ship-to Party c.Enter the Requested Delivery Date and the validity dates. c.

29. 29 Step 2 – Completing the Inquiry a.Enter Sold-to party. b.Enter the Ship-to Party c.Enter the Requested Delivery Date and the validity dates. d.Enter Material Numbers or select from a list by using a matchcode search. Enter the requested order quantity. Step 2 – Completing the Inquiry a.Enter Sold-to party. b.Enter the Ship-to Party c.Enter the Requested Delivery Date and the validity dates. d.Enter Material Numbers or select from a list by using a matchcode search. Enter the requested order quantity. d.

30. 30

31. 31

32. 32

33. 33 Schedule Lines w/inventory Full quantity is available for customers request date. Schedule Lines w/inventory Full quantity is available for customers request date.

34. 34 Schedule Lines w/partial availability: 75 in stock 75 coming in 8/16 100 coming in 8/23 Schedule Lines w/partial availability: 75 in stock 75 coming in 8/16 100 coming in 8/23

35. 35 III. Sales Quotations

36. 36 Quotation II. Sales Inquiries Used to store pre-sales data. There are a wide range of functions defined for managing and monitoring these documents. Information gained from these documents can be used to gauge different market, sales, inventory trends. Each document has a validity date. A Textual description can be used instead of the material #. A quote is a legally binding declaration to the customer containing material specifications, prices and terms of delivery/sales.

37. 37

38. 38 Step 1 – Initial Screen a.Enter Quotation Type QT = Sales Quotation AS = Service Quotation Step 1 – Initial Screen a.Enter Quotation Type QT = Sales Quotation AS = Service Quotation

39. 39

40. 40 Override Application or Industry: a.Menu Path: Go-to – Header To change the industry or application for special projects that deviate from the customer master default. Override Application or Industry: a.Menu Path: Go-to – Header To change the industry or application for special projects that deviate from the customer master default.

41. 41

42. 42 Facilitator Demonstration/Review 1.Creating an Inquiry 2.Creating a Quotation a.With Reference to Inquiry b.Without Reference to Inquiry Inquiries and Quotations

43. 43 IV. Sales Orders

44. 44

45. 45

46. 46 Sales Order Types Sales and Distribution CodeOrder TypeCodeOrder Type

47. 47

48. 48 Override Freight Forwarder (Carrier) by line item: a.Menu Path: Go-to – Item - Partners Select the match code on the forwarding agent partner no. field. Use Account group Z015 (shipping/freight). Override Freight Forwarder (Carrier) by line item: a.Menu Path: Go-to – Item - Partners Select the match code on the forwarding agent partner no. field. Use Account group Z015 (shipping/freight).

49. 49

50. 50 Sales Order Processing Name the 2 distribution channels? Name the 7 different division? Name 2 things order type controls? Where do you change the freight carrier? Where does the application and industry default from and how do you change? What is the SAP term for Item Master?

51. 51 Sales Order Processing What 3 organizational elements make up the Sales Area? What is the condition type for Material Price? What is the condition type to override Material Price? Name 2 things order type controls? Where do you change the freight carrier? What is the search criteria you will use to find the forwarding agent (freight carrier)? Where does the application and industry default from and how do you change?

52. 52 V. Inventory and Availability Reporting

53. 53 Inventory and Availability Availability Check Inward movement of goods Outward movement of goods Stock Purchase Order Production Order Firm Planned Order Delivery Sales Order Reservation Other factors to take into account: Safety stock Stock transport orders Replenishment lead time

54. 54 Inventory and Availability Stock on Hand Stock on Hand Delivery Open Purchase Orders Open Purchase Orders Stock in Transit Stock in Transit Firm Planned Orders Firm Planned Orders Sales Orders Sales Orders Reserved Invent. Reserved Invent. Inward Movements Outward Movements Time Fence / Lead-time Replenishment SD Available to Promise Capabilities Open Production Orders Open Production Orders

55. 55 Stock Overview Stock Requirements List Availability Overview Warehouse Stock Stock Overview Stock Requirements List Availability Overview Warehouse Stock

56. 56 Availability Overview: Displays the availability situation for a particular material and plant combination. Transaction Code – CO09 or Icon from within sales order - Enter Plant 1W Enter Checking rule A Check the W/Reqmts Quants Box Availability Overview: Displays the availability situation for a particular material and plant combination. Transaction Code – CO09 or Icon from within sales order - Enter Plant 1W Enter Checking rule A Check the W/Reqmts Quants Box

57. 57

58. 58 Stock Overview : Transaction Code - MMBE Displays all stock (&stock types) of a material over all organizational levels. Stock Overview : Transaction Code - MMBE Displays all stock (&stock types) of a material over all organizational levels.

59. 59 Stock Requirements List: Transaction Code – MD04 Displays open incoming orders ( planned orders, production orders, purchase orders ) and outgoing requirements ( sales orders, deliveries, reservations, purchase orders ) Forecast VSF is consumed by sales documents. ATP does not consider VSF. Stock Requirements List: Transaction Code – MD04 Displays open incoming orders ( planned orders, production orders, purchase orders ) and outgoing requirements ( sales orders, deliveries, reservations, purchase orders ) Forecast VSF is consumed by sales documents. ATP does not consider VSF.

60. 60 Warehouse Stock: Transaction Code – MB52 Warehouse Stock: Transaction Code – MB52

61. 61 Business Process Flow in SAP Invoice Delivery Order Document flow of any sales document Order 900. Delivery 80000459.. Picking request 17951109.. GD goods issue: delvy 49001828.. Invoice 90000333... Accounting document 100000276 Document flow of any sales document Order 900. Delivery 80000459.. Picking request 17951109.. GD goods issue: delvy 49001828.. Invoice 90000333... Accounting document 100000276 Payment Sales documents represent transactions in the system. They form a chain of related documents. The entire chain of documents creates the document flow. The system copies data from one document into another to reduce data entry and make problem resolution easier.

62. 62 If you enter an order for the same customer/material combination you will get a notification.

63. 63 Select “List”

64. 64 Sales Order Processing What 3 organizational elements make up the Sales Area? Where do you change the freight carrier? What is the search criteria you will use to find the forwarding agent (freight carrier)? What is Document Flow?

65. 65 VI. Consignment Orders

66. 66 Consignment Orders Consignment goods are goods which are stored at the customer location but which are owned by. The customer is not obliged to pay for these goods until they remove them from consignment stock. In inventory management, the consignment stock is managed as special stock in your inventory and is assigned to specific customers. Availability check is not carried out on consignment inventory Consignment Orders

67. 67 Consignment Orders Consignment Fill Up – Order Type KB Consignment fill up is used to supplement or create the customer’s consignment stock. When you ship consignment stock to the customer, you process the transaction by creating a consignment fill-up order. The relevant quantity is removed from regular inventory in your plant and is added to special stock for the customer. The transaction is not relevant for pricing since the consignment stock remains the property of. Consignment Fill-Up Delivery Goods Issue (Increased Stk) Sales WM Customer Consignment Stock Created

68. 68 Create Consignment Fill-up Order Type KB Create Consignment Fill-up Order Type KB

69. 69 Go to your Stock Overview report to view the inventory movements. Transaction Code: MMBE Go to your Stock Overview report to view the inventory movements. Transaction Code: MMBE

70. 70 After Product is shipped, the inventory will be moved to Customer Consignment Stock.

71. 71 Consignment Orders Consignment Issue – Order Type KE Consignment issue enables the customer to take the consignment goods from the special stock for their use or to sell. When the customer removes consignment stock to use or sell, you record the transaction in the system by creating a consignment issue order. When the goods issue is posted by Sales, the relevant quantity is deducted from both the customer’s special stock and your own total valuated stock. The transaction is now relevant for pricing since the goods now become the property of the customer. Consignment Issue W/ref to fill-up Delivery Goods Issue (Decreases Stk) Billing Document Sales

72. 72 Consignment Orders Consignment Returns – Order Type KR Consignment Return is used only if you need to reverse a consignment issue. The relevant quantity is returned to consignment inventory. The transaction is relevant for pricing since the customer was already billed for this. A credit memo will be created. Consignment Returns W/ref to Issue Delivery Goods Issue (Increase Stk) Credit Memo Sales

73. 73 Consignment Orders Consignment Pick-Up – Order Type KA Any consignment goods stored at the customer’s warehouse that haven’t been used can be returned to ’s warehouse with a consignment pick-up. If the customer returns consignment stock to you, you record the transaction in SAP by creating a consignment pick-up order, similar to a return order. When the goods issue is posted, the relevant quantity is deducted from the customer’s special stock and is added back into your regular stock. Your total valuated stock remains the same since the returned stock was regarded as inventory while it was at the customer’s premises. The transaction is not relevant for billing. Consignment Pick-Up Delivery Goods Issue (Decreases Stk) Sales WM Customer Consignment Stock depleted

74. 74 Document Flow: Menu Path – Environment – Display Document Flow Icon – Document Flow: Menu Path – Environment – Display Document Flow Icon –

75. 75 Sales Order Processing What does a consignment issue order type do? Is a consignment fill-up order relevant for billing? Is a consignment return relevant for billing? What is the search criteria you will use to find the forwarding agent (freight carrier)? What is Document Flow? What 3 organizational elements make up the Sales Area? TIP: Ctrl C and Ctrl Y

76. 76 Sales Order Processing What does a consignment issue order type do? Is a consignment fill-up order relevant for billing? Is a consignment return relevant for billing? What is the search criteria you will use to find the forwarding agent (freight carrier)? What is Document Flow?

77. 77 VII. Order Reporting

78. 78 Reporting and Analysis in SAP R/3 Standard Reporting –Lists documents and master data –Provides analysis through sorting and totals –Displays details List Processing –Lists selected documents –Allows you to branch to documents and return to list –Helps organize work I. General Information for Sales Order Processing

79. 79 ZVCSO – customer or sales report can be run by: Sales Group Sales Employee Distribution Channel Material Sold-to Many others

80. 80 The report can also be dumped into Excel to sort and modify to give to customers or the outside sales force To do so select: List – Save – File…

81. 81 Select Spreadsheet as the format to be saved

82. 82 Name the file and note the file name path

83. 83 Open Excell and find your file You may have to search for all files

84. 84 A Clip of ZVSCO in Excell

85. 85 ZVISO – Is an Internal Order report similar to ZVCSO that contains additional information and is run the same way

86. 86 VA05 Report run in SAP by: Sold-to Material PO # Open orders Both open and closed orders Your Orders

87. 87 VA05 lists sales orders per your selection criteria Additional fields can also be utilized

88. 88 Hidden fields can be selected Brought over to displayed fields And copied into the report

89. 89 Documents can be referenced just by double clicking the SD doc #

90. 90 This takes you into the document itself to update or view

91. 91 VIII. Complaints Processing

92. 92 Complaints Processing Return Order RE– Product being return from customer Credit Memo Request CR– Credit being issued without product being returned. Debit Memo Request DR– Debit being given to customer. The request is automatically placed on billing block pending verification. If the credit is justified the billing block is removed by sales supervisor and a credit or debit memo is created. Order Reason is required to help with the justification process. Additional details can be entered in the header comments text. Subsequent Delivery Free of Charge SD – Short shipment

93. 93 Credit and Debit Memos Credit memo Debit memo Credit memo request Debit memo request Credit Memos Debit Memos Billing block Sales Order Invoice Sales Order Invoice

94. 94 Complaints Processing Credit/Debit memo request – Order Type CR/DR Billing Block (release request) Billing Due List (Credit/Debit Memo creation)

95. 95 Credit Memo Request with Reference to Invoice: a.Enter Billing Doc b.Click Selection List to select item and quantity. Credit Memo Request with Reference to Invoice: a.Enter Billing Doc b.Click Selection List to select item and quantity.

96. 96 Credit Memo Request with Reference to Invoice: c.Select the items and quantity d.Hit copy button Credit Memo Request with Reference to Invoice: c.Select the items and quantity d.Hit copy button

97. 97 Credit Memo Request with Reference to Invoice: e.Order reason f.Billing block will default Credit Memo Request with Reference to Invoice: e.Order reason f.Billing block will default

98. 98 Credit Memo Request with Reference to Invoice: g.PN00 (price override) the amount of the credit you want to issue. Credit Memo Request with Reference to Invoice: g.PN00 (price override) the amount of the credit you want to issue.

99. 99

100. 100 How Are Returns Processed? Returns delivery Credit memoReturn request (authorization) Accept returned goods (Post goods issue) Accept returned goods (Post goods issue) Place in restricted stock Place in restricted stock Credit memo created after removing the billing block. Credit memo created after removing the billing block. Invoice Sales Order Billing block Order reason required to create Return Order Order reason required to create Return Order

101. 101 Complaints Processing Return Order Request – Order Type RE Return Delivery (accept return) Billing Block (release return request) Billing Due List (Credit Memo creation) Note: Return Order Freight – Creating a return order and want credit freight back to the customer – the freight needs to be added at order entry. When you create an return order with reference to a prior invoice, freight that was charged on the original invoice will be copied into the return order and go all the way through billing. Or, when you create a return order without reference to a prior invoice, you are able to enter freight as a line item on the order and process all the way through billing.

102. 102 IX. Pro-Forma Invoice Creation

103. 103 Creating a Billing Document – Pro-Forma Invoice Invoices will typically be created using the Billing Due List which creates invoices in bulk that are due for billing. However, an individual billing document can be created in VF01 following the menu path: Logistics, Sales and Distribution, Billing, Billing Document, Create.

104. 104 Proforma Invoices A proforma invoice is an invoice that is generated before the shipment is made. Often the proforma invoice is used by our customers to obtain importation license when shipping overseas. There are two methods by which a proforma invoice is generated: For an entire sales document—issued for the entire open order. For an outbound delivery—issued for just the material on a specific delivery. Note: Data from Proforma invoices is not transferred to Accounting.

105. 105 Creating a Proforma Invoice from a Sales Document From the drop down menu, choose the billing type ‘Proforma for Order’. Enter the sales order document number. Hit enter.

106. 106 Creating a Proforma Invoice from a Sales Document The material on the order will be listed. To finish processing your proforma invoice, click on the Save icon. Once the invoice has been generated, the document number will appear at the bottom of the screen. The document will automatically print to the user’s designated printer.

107. 107 Sales Order Processing Sales and Distribution Lists PR00 Material Pricing Availability checking within Inquiry Delivery Due List Delivery Groups/Ship Complete – Shipping tab

108. 108 Sales Order Processing Free Delivery FD – ( Sample, Shows, Warranty) Schedule item category Proforma Invoice Creation Errors – Information, Warning, Error Order Reason – Non G/L Sales Consignment

109. 109 Sales Order Processing Is a consignment fill-up order relevant for billing? Is a consignment return relevant for billing? What is the search criteria you will use to find the forwarding agent (freight carrier)? What information is required when entering a return order request? What process needs to take place for a Credit Memo to be generated from a Credit Memo Request? What does a rush order (SO)do different then a standard order (OR)?

110. 110 Sales Orders Hands-On Order Processing Exercise