Sales Order Processing

Sales & Distribution

Company
LOGO
 Topics

1. Introduction

2. Customer Inquiry

3. Quotation

4. Sales Document structure

5. Data Origin in Sales documents

6. Control in Sales documents

7. Features in Sales order

8. Special Sales orders

 Introduction
 Sales order processing is at the core of Sales &
Distribution module.
 Sales allows execution of various business transactions
which get recorded in system as sales documents.
 There are four basic groups of sales documents

Customer Inquiries and quotations

Sales orders

Agreements like contracts and scheduling agreements.

Complaints like returns and credit & debit memo requests.
 Sales order processing in turn triggers basic functions
like availability check, pricing, credit check etc.
 Other subsequent documents like delivery & billing can
be generated from sales order based on business
requirements.
 Introduction

 In system the sales order is linked with previous and

subsequent documents like a chain and can be viewed in
document flow storing history of events.
 This linkage is evident in the diagram below
Inquiry Sales

Contract Quotation

Order Returns Sched. Agmt.

Delivery Shipping

Debit Memo Billing Doc Credit Memo Billing

 Data flows from one document to another reducing

manual
 Customer Inquiry
 Customer Inquiry is part of pre-sales process, it
represents in system the request of customer for a sales
quotation or information.
 Customer inquiries created in system can be used for
subsequent sales processing, these are also used when
record of complete sales cycle is necessary.
 An inquiry in system contains one or more items
consisting of quantity of material or service as asked by
customer.
 Quantity specified by customer can be split in different
schedule lines and dates. Pricing conditions are
determined as maintained in records.
 Inquiry document gets status as ‘Complete’ once it is
used as reference for quotation.
 Quotation
 Quotation represents an offer which is legally binding to
deliver the product or provide a service in some fixed
conditions. In the specified time period of quotation
company needs to agree to the conditions.
 Quotations can be referenced from Inquiries and also
copied on to sales orders as a reference via Copy control
 These are normally used when companies are dealing
with Government or large organizations.
 In system where quotations are created analysis can be
done to check quotations to sales order conversion ratio
for Sales analysis.
 Like inquiries the order quantities can be split in multiple
schedule lines and pricing data is also available.
 Sales Document Structure

 Sales documents including inquiry and quotation

explained earlier have the same basic structure
 Any sales document is made up of a document header
and any no of items. Items can in turn be divided in
schedule lines.
 General data applicable to entire document is recorded
at header level like Sold to party, Document currency.
 Item data applies to specific items like Material no,
delivering plant etc.
 Schedule line data contains information
needed for delivery.
 Structure of sales document graphically →
 Sales Document Structure

 Sales document in system has a user friendly interface

which facilitates easy navigation and switching between
screens.
 An important feature of interface is the tab page which is
like of box of index cards as shown below

 Important date in a sales document is contained in

following three screens which in turn have several tabs.
 Overview Screen
Overview screen presents user with main Header data of
document and links to other screens to which user can navigate
to. It gives a snapshot of sales document and important fields
where entries are necessary for the creation of document.
 Sales Document Structure


Header Screen
Screen has tab of various important header data which applies
to the entire document. Eg. Of tabs shown below


Item Screen
Item screen displays data on individual items in a sales
document. Item screen also has various tabs containing various
relevant data.

 There are additional screens for Schedule lines etc to

which user can navigate from item screen.
 Data Origin in Sales

 Sales order as explained earlier is a contractual

agreement between a sales organization and a Sold-to
party on delivering product or providing service on
agreed terms.
 The creation of sales document hence requires that all
proper terms are available, to aid this system proposes
much of the data from various sources i.e

Data from Master records

Data determined from system

From preceding documents
 Explanation of each source in detail follows:
 Data Origin in Sales

 Data from Master records

Data from master records is copied when sales
document is not created with reference to preceding
document.
Following data is copied:
 From Customer master

From the customer master data of Sold-to party, system

proposes Sales, Shipping, Billing & partner data. In addition
customer specific data like texts, additional data is also copied.
For Sold-to party having multiple partners system proposes the
Partner for selection and then copies relevant data from such
partners if they are different.
 Data Origin in Sales
 From Material Master
System copies data relevant to Pricing, Tax determination,
Weight/Volume, Availability check, Plant details etc from
individual material master record of that Sales organization.
 From Customer material info record
Customer specific master data for a material is maintained in
Customer material info record and copied on to sales order. The
data like customer specific description, material no, shipping
data etc can be maintained and copied to sales order.
Following graphic explains data origin
from master data.
 Data Origin in Sales

 Data determined by system

Some of the data is determined in system based on
combination of data provided from Customer and
material master. Eg. Routes is proposed from
configuration based on input parameters derived from
Customer.

The data is determined from a combination of

configuration maintained and other sources of data like
Pricing etc. System determines data separately based
on various factors at various times.
 Data Origin in Sales

 Data from preceding documents

SAP provides an easy way of creating sales documents
i.e. with reference to previous document. With this
method system copies nearly all the data from previous
document.
Eg. Sales order when created with ref to a quotation
copies all relevant data of partners, sales, shipping and
billing information. These parameters may be different
from what is stored in master data.
 Control in Sales documents

 Control of sales documents is via customizing and

explained in detail in customizing guide. This is covered
in brief here.
 Sales document processing is controlled at three levels

Sales document type

Item category

Schedule line category
 Sales document header level controls are at Sales
document type, whereas controls of how an item should
behave in the document are controlled at Item category
level. Controls of individual schedule lines of items like
requirements transfer and availability are at schedule line
category level.
 Features in Sales order

 Various features in sales order processing are provided

in system which are common across sales documents.
These are explained here:

Making Fast changes
This function allows changes for several or all items at same
time. Data that can be changed with this function include:
Reason for rejection, Plant, Delivering block, Billing block,
Delivery date, Delivery priority.
 Additional Data
Sales document contains Additional data A and B tabs which
contain fields like Customer group 1-5 and Material group 1-5,
these can be copied from Customer and material master
respectively and can be used for analysis or inputs in pricing etc.
 Features in Sales order
 Displaying Changes
This is an important feature in sales order which helps in
displaying changes made to sales document, which can be very
useful for audit purpose. It displays a list with following points
 Situation before and after change.
 Change date and time
 User name of person making changes.

Derivation of Sales Area
Processing of any sales document is for a sales area and
derivation of sales area is important. If Sales area is not
specified at initial screen this can be derived from Sales area of
Sold-to party or Ship-to party customer master record. For
customer belonging to multiple sales areas system prompts for
user input in a dialog box.
 Features in Sales order
 Item Proposal
To aid the user and reduce time system can propose items in
sales order from two sources, Existing document like quotation
or sales order and an Item proposal

For frequently ordered item by a customer the items can be

entered in a document called ‘Item proposal’. During sales order
creation the no of item proposal can be entered from which all or
some items can be copied on to sales order.
The item proposal no can also be entered in customer master
record from where it can be automatically proposed when
creating a sales order.
 Special Sales Orders

 Cash Sales

Cash Sales is a special sales order where Customer orders,
picks up and pays for the goods immediately. This is also called
as counter sales.
 The cash invoice is immediately printed from Order and delivery
is also immediate. Invoice amount is directly posted to cash
account and so there is no receivables like normal sales.
 Process flow:
 Special Sales Orders

 Cash Sales

Standard system has order type CS (or BV) for cash sales.

On creation of Cash sales order by sales employee system
proposes current date for delivery and billing, on saving of order
system creates delivery of type BV immediately in background
and Invoice output from cash sales order is printed. The output
type for this in standard system is RD03.
 Delivery can be processed manually as it is already picked up.
 Billing index is created and invoice can be created by an
background job.
 The order type can be customized in configuration to suit
specific business process as required.
 Special Sales Orders

 Rush Order

Rush order is a special sales order where Customer picks up the
goods or company delivers the goods on the same day as order
is placed.
 In standard system sales document type RO is used on saving
of which creates delivery of type LF immediately. Goods are
picked and goods issue posted. Invoice is created later and
papers are posted.
 Process flow: