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    Chapter 5 - OPER8030

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    srinivas sai
    1) The document describes the key steps and elements in a basic fulfillment process from pre-sales activities like creating quotations to post-sales activities like payment processing and credit management. 2) It outlines the main master and transactional data involved in each step as well as how steps impact downstream processes in areas like materials management, production planning, accounting, and controlling. 3) The fulfillment process integrates with other ERP processes and provides reporting on metrics like document flow, sales performance, and profitability analysis.

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    Chapter 5 - OPER8030

    Uploaded by

    srinivas sai
    27 views54 pages
    1) The document describes the key steps and elements in a basic fulfillment process from pre-sales activities like creating quotations to post-sales activities like payment processing and credit management. 2) It outlines the main master and transactional data involved in each step as well as how steps impact downstream processes in areas like materials management, production planning, accounting, and controlling. 3) The fulfillment process integrates with other ERP processes and provides reporting on metrics like document flow, sales performance, and profitability analysis.

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    1) The document describes the key steps and elements in a basic fulfillment process from pre-sales activities like creating quotations to post-sales activities like payment processing and credit management. 2) It outlines the main master and transactional data involved in each step as well as how steps impact downstream processes in areas like materials management, production planning, accounting, and controlling. 3) The fulfillment process integrates with other ERP processes and provides reporting on metrics like document flow, sales performance, and profitability analysis.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    27 views54 pages

    Chapter 5 - OPER8030

    Uploaded by

    srinivas sai
    1) The document describes the key steps and elements in a basic fulfillment process from pre-sales activities like creating quotations to post-sales activities like payment processing and credit management. 2) It outlines the main master and transactional data involved in each step as well as how steps impact downstream processes in areas like materials management, production planning, accounting, and controlling. 3) The fulfillment process integrates with other ERP processes and provides reporting on metrics like document flow, sales performance, and profitability analysis.

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    You are on page 1of 54

    BUSINESS PROCESS

    INTEGRATION AND
    ENTERPRISE RESOURCE
    PLANNING SYSTEMS
    OPER8030
    CHAPTER 5 – THE FULFILLMENT PROCESS
    A BASIC FULFILLMENT PROCESS

    2
    SALES ORGANIZATION

    • Responsible for
    • Distributing goods and services
    • Negotiating sales conditions
    • Product liability and rights of recourse
    • Used to divide the market based on geographic regions
    • Highest level of aggregation in sales-related reporting
    • A company code must have at least one sales organization

    3
    GBI SALES ORGANIZATIONS

    4
    DISTRIBUTION CHANNEL

    • Responsible for getting materials to customers


    • Used to
    • Differentiate distribution strategies or approaches
    • Different pricing, responsibilities
    • Wholesale sales, retail sales, Internet sales
    • Statistics and reporting at the DC level

    • A sales organization must have at least one distribution channel

    5
    GBI US DISTRIBUTION CHANNELS

    6
    DIVISION
    • Used to consolidate materials with similar characteristics
    • Different sales strategies, pricing agreements
    • Statistics and reporting at the DC level
    • Associated with product lines
    • A sales organization must have at least one division
    • Can be assigned to multiple sales organizations

    7
    GBI US DIVISIONS

    8
    SHIPPING POINT

    • A physical location from which outbound deliveries are sent


    • Loading dock
    • Mail room
    • Rail depot
    • Group of employees (to handle expedited orders)

    • A plant must have at least one shipping point


    • A shipping point can be assigned to many plants

    9
    SHARED SHIPPING POINTS

    10
    MULTIPLE SHIPPING POINTS

    11
    SHIPPING POINT EXAMPLE

    12
    SHIPPING POINT EXAMPLE

    13
    SHIPPING POINT EXAMPLE

    14
    CREDIT CONTROL AREA

    • Responsible for customer credit


    • Centralized
    • One credit control area for all company codes in the enterprise
    • All customers in all company codes are managed by one credit control area
    • Decentralized
    • More than one credit control area in the enterprise
    • Each credit control area manages credit for one or more company codes

    15
    MATERIAL MASTER DATA

    • Basic Data
    • Sales: Sales Organization
    • Includes data specific to a combination of sales organization and distribution channels
    • Examples include: delivering plant, sales units (unit of measure), minimum quantities (order,
    delivery)

    • Sales: General/Plant
    • Includes data specific to a plant
    • Examples include: handling requirements (refrigeration), loading (hand cart, forklift)

    16
    CUSTOMER MASTER DATA

    • General Data
    • Specific to a client
    • Valid across company code and sales area
    • Financial/ Accounting data
    • Specific to a company code
    • Sales Area data
    • Specific to a sales area

    17
    SEGMENTS OF CUSTOMER MASTER
    DATA

    18
    CUSTOMER MASTER DATA

    • General data
    • Account number
    • Address
    • Communication
    • Company code data (FI)
    • Reconciliation account
    • Payment terms

    19
    CUSTOMER MASTER DATA

    • Sales Area data (Sales)


    • Sales related
    • Sales area, pricing, currency
    • Shipping
    • Delivering plant, priorities, methods, tolerances, partial delivery
    • Billing
    • Terms, tax-related,
    • Partner functions: multiple roles
    • Sold-to-party, ship-to-party, bill-to-party, payer

    • A customer can be served by multiple sales areas

    20
    PRICING CONDITIONS

    • Prices
    • Material price
    • Customer specific price
    • Freight
    • InCoTerms
    • Surcharges and discounts
    • For customer, material, or combination
    • Taxes

    21
    OUTPUT CONDITIONS

    • Sent to customers using a variety of media


    • Examples of output
    • Quotation, order confirmation, invoices
    • Media
    • Mail, fax, EDI
    • Master data includes
    • Output type, medium, time (immediate or later), partner function

    22
    FULFILLMENT PROCESS STEPS

    23
    PRE-SALES ACTIVITY

    • CRM light – establishing and maintaining customer relationships


    • Activities include
    • Creating and tracking customer contacts
    • Mailing campaigns
    • Responding to customer inquiries and request for quotation
    • Quotations
    • Outline agreements
    • Contracts
    • Scheduling agreements

    24
    ELEMENTS OF THE PRE-SALES
    ACTIVITY

    25
    DATA IN A QUOTATION

    26
    ELEMENTS OF A SALES ORDER

    27
    DATA IN A SALES ORDER

    28
    BACKWARD SCHEDULING

    29
    INVENTORY SOURCING

    • Transfer of requirements (materials management / materials planning)


    • From stock
    • Materials management
    • Internal procurement
    • In-house production process
    • External procurement
    • Procurement process

    30
    SHIPPING

    • Create outbound deliveries


    • Picking (optional)
    • Packing (optional)
    • Transfer requirement (if WM is enabled)
    • Post goods issue

    31
    ELEMENTS OF THE SHIPPING STEP

    32
    DATA IN A DELIVERY DOCUMENT

    33
    DELIVERIES

    • One order >> multiple deliveries


    • Multiple orders >> one delivery
    • Constraints?
    • Same customer
    • Same shipping point
    • Same delivery date
    • Same ship-to-address

    34
    IMPACT OF POST GOODS ISSUE

    • A material document is created


    • GL accounts - Stock accounts and cost of goods sold account - are updated, and
    an accounting document is created
    • A controlling document is created
    • Fulfillment provides COGS data to profitability analysis in controlling

    • The billing due list is updated


    • Sales documents are updated (status)

    35
    OUTCOMES OF SHIPPING (GOODS
    ISSUE)

    36
    FI IMPACT OF THE SHIPPING STEP

    37
    BILLING

    • Create invoices
    • Create credit and debit memos
    • Many deliveries >> one billing document
    • Same payer, billing date and destination country
    • One delivery >> many billing documents

    38
    ELEMENTS OF THE BILLING STEP

    39
    DATA IN A BILLING DOCUMENT

    40
    IMPACTS OF A BILLING DOCUMENT

    • GL accounts are updated and an FI document is created


    • Customer account > AR reconciliation account
    • Sales revenue account
    • A controlling document is created
    • Fulfillment provides revenue data to the profitability analysis process
    • Sales documents are updated (status)

    41
    OUTCOMES OF THE BILLING STEP

    42
    FI IMPACT OF THE BILLING STEP

    43
    PAYMENT

    • Post incoming payment


    • GL accounts are updated and an FI document is created
    • Cash/Bank account
    • Customer account -> AR reconciliation account

    44
    ELEMENTS OF THE PAYMENT STEP

    45
    DATA IN A PAYMENT DOCUMENT

    46
    FI IMPACT OF THE PAYMENT STEP

    47
    CUSTOMER PAYMENT WITH DISCOUNT

    48
    PROCESSING CUSTOMER PAYMENT

    49
    CREDIT MANAGEMENT PROCESS
    • Used to determine if credit should be granted to a customer (i.e., should
    process continue?)
    • Credit is checked when:
    • Sales order is created or changed
    • Delivery is created or changed
    • Post goods issue
    • Approval based on
    • Credit exposure = sum of open orders, deliveries, open invoices, and current order value
    • Outcomes: warn & continue, error & terminate, block delivery

    50
    CREDIT MANAGEMENT PROCESS

    51
    INTEGRATION WITH OTHER
    PROCESSES

    52
    REPORTING

    • General SAP reporting options


    • Online lists
    • Work lists
    • Analytics
    • Fulfillment specific reporting options
    • Document flow

    53
    EXAMPLE OF STANDARD ANALYSIS

    54

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