The Sales Order Process in SAP ERP

Integrating people and technology.

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The Sales Order Process in ERP
….integrating people and technology
Author: Tom Matys

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Why Marketing & Sales (M/S)?
Companies must stay competitive! They
can never claim that they’ve reached
their destination
.
We’re Here!

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Overall Business Functions
Marketing & Sales (M/S): Takes Orders
Supply Chain Management (SCM): Assembles
(Production/Inventory/Warehouse)
Account & Finance (A/F): Invoices

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M/S & SD: Sales Order Process
The Sales & Distribution (SD) Module:
• Pre-sales processes
Create Inquiry (Quotation) (Trigger)
•Sales Order processing.
Create Sales Order
•Shipping
Create Outbound Delivery
Pick/Fulfill the Outbound Delivery
Post Goods Issue (PGI) the shipment/delivery
•Invoicing
Create Invoice
Collect Payment

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But, It’s All About the Integration, Right?
Human ERP Integration: M/S employees are
responsible for triggering the electronic/technical
process in an ERP system. Also, for communicating
with SCM and FI Departments when needed.
Technical ERP Integration: SD is the SAP
module (logic) that executes in the background and
streamlines information with SCM (Supply Chain
Management) and FI (Finance) modules.

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SD Integrates with FI (Finance)

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SD Integrates with MM(Materials Management)

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Sales Orders are Created By Organizations
•Sales Organization
The sales organization represents the selling unit in the legal sense. It is
responsible for example for product liability and other rights of recourse;
customer deliveries; business partner contacts; and direct mailing campaigns. It
also helps you to offset business operations internally.
The highest hierarchy
in the organizational
structure

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Sales Orders are Created By Organizations
•Distribution Channel
Definition: The distribution channel is the channel through
Which products reach the customer.
Use: Each distribution channel is assigned to a sales org.
Is second in the hierarchy of
the organizational
Structure, beneath the sales
org.

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Sales Orders are Created By Organizations
•Sales Division
Definition: You can use divisions to organize materials or
services, for example to form product groups or lines.
Is third in the hierarchy of the
organizational Structure,
beneath the sales org. and
Distribution Channel.

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Other Sales Order Input
Sold To Party: A business partner to whom you sell
a product. To access the business partner master,
on the SAP Easy Access screen, choose Master
Data ® Business Partners ® Display Business
Partners.
•Purchase Order Number: A purchase order
is an official and binding document issued to a
vendor authorizing the expenditure of funds
for goods and services. Transaction ME23N.
•Required Delivery Date: The date that the
customer expects the product.

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Master Data in SD
Master data is information that is key to the
operation of a business. It is the primary focus of
the IT discipline of Master Data
Management(MDM). This key business information
may include data about customers, products,
employees, materials, suppliers, and the like.
Using transaction SE16 you can view the following
Master Data Tables in SAP ERP:
Vendor Master Data: LFA1
Customer Master Data: KNA1
Material Master Data: MARA

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Customer Order Process
Inquiry
Sales
Order
1
2
AvailabilityPricing
Sales and
Distribution

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Customer Order Process
DeliverySales
Order
3
5Pic
k
Materials
Management
Goods Issue
Delivery
4
Delivery

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Customer Order Process
Invoice
6 7
Sales and
Distribution
Accounts
Receivable
Delivery
Receivable
Post
Receivable

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Debugging Tools
Document Flow
Gives Order Process Status
List of Sales Orders (VA05)
Tool to Find Order

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Steps in Sales Process
1
2
3
4
5
6
7

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List of Sales Orders (VA05)
Specify Organizational Data

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Search by Organizational Data
Enter student’s
Sales Organization (##FS)

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Execute List Report
Click enter to
generate list

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Display Orders
Identify order(s) created by
student
Select students order
Select Document flow

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Determine Status
1
2
3
4
5
6
7

23. Process Example
Trigger: Create Sales Inquiry (Quote)
Create Sales Order
Create Delivery
Pick the quantity needed for the delivery
Create Goods Issue for Shipment
Create Customer Invoice
Customer Payment Receipt

24. Sales & Distribution (SD) Module
M/S
Stop Here

25. Remember….
•Wherever you see XX or 00 (Your USER ID)
•A deduction of 10% of the lab grade points
will be deducted from the lab if your user
ID is rejected due to too many log on
attemptsIf you log on once and it does not work, then find
your password that was written down to confirm
it, and look at all of the input fields to make
sure that they are correctly entered….before you
try a second attempt. If your second attempt
fails, call the instructor before trying a third
time.