Contents: Sales Process

Handling Issues in Sales – A/R

Sales - A/R

In this unit, you will: Master the basic steps of the sales process

Understand the consequences of each step on inventory and accounting

Handle issues that arise within delivery and billing

Sales - A/R: Purpose

The company has set customer satisfaction as its top priority and wants to streamline its processes in sales to make sure that its customer’s demands can be met as quickly as possible.

When problems arise for the customer, you can quickly solve the issues by using documents such as Returns and Credit Memos.

Sales - A/R: Business Example

Sales Process: Unit Overview Diagram

Sales - A/R

Topic 1: Sales Process

Topic 2: Handling Issues in Sales

Sales Process

Sales Order Delivery Incoming Payment

A/R Invoice

System Configuration

Purchasing

Warehouse management

Production

Inbound logistics

Outbound logistics

Marketing & Sales

Service

Financial controlling

Master data

Key Data in the Sales Process: Business Partners

Common structure for all business partners used in sales and purchasing

Business partners used in the sales process: Leads Customers

Defaults are set at the company level for business partner details such as: Currency Payment terms Credit Limit Price list

Leads and Customers

Leads Use on pre-sales

documents or sales orders

Not on deliveries or invoices

Customers Use on any sales

document Convert leads to

customers when they buy

Key Data in the Sales Process: Items

Items represent products to be sold Item information is stored in the item master

record You can type item codes directly into a sales

document rows or search for items by description or other item attributes

Using Price Lists in the Sales Process

Price ListPrice List

Customer Master RecordCustomer Master Record

Sales DocumentsSales Documents

Price List Basics: 10 default price lists are provided. Items are linked to every price list. Assign a price list to each customer. The assigned price list defaults into a sales

document automatically.

Sales Order

Our customer orders 5 laptops We enter customer, items, and quantities in the sales order The system determines the price automatically A manual discount for 1% is entered in the order The customer is also eligible for an early payment discount of 2%

Item Availability Check in Sales Orders

Sales Order

A00001A00001Item No. Description

…… Quantity

5050 01 01 WH

Item Availability Check

Select Action:

Continue Change To Available Quantity

Display Quantities in Other Warehouses Display Alternative Items

Delete Row

If Order Quantity>

Quantity Available

Document

Per Document

Administration System Initialization Document Settings

Sales Order

Activate Automatic Availability Check

Document Settings

1.)2.)

3.)

Item No.

Warehouse

Quantity Ordered

Available Quantity

A1000A1000

0101

50 Pair = 100 pcs50 Pair = 100 pcs

10.06.201010.06.2010

Requested Due Date05.06.2010

05.06.2010

28 pieces28 pieces

Earliest Available

Display Available-to-Promise Report

Delivery

We ship 5 laptops to the customer The quantity of 5 laptops is removed

from inventory The inventory account is credited for

item cost The cost of goods sold account is

debited

A/R Invoice

We bill our customer for the 5 laptops The total includes the 1% manual discount The due date is based on the customer’s payment

terms A journal entry is created to record:

a credit to revenue a debit to the customer account

Incoming Payment

The customer pays the invoice on time for the 5 laptops

The total includes the 1% manual discount and the early payment discount of 2%

A journal entry is created to record: debits to our house bank account and

discount accounts a credit to the customer account

Sales to One-Time Customers (A/R Invoice + Payment)

Menu

Administration

Sales

Default Customer for A/R Invoice + Payment

C9999 One-Time Customer

Setup Financials G/L Account Determination

C9999

A00001A00001

Customer

Item No. Item Description

A00002A00002Twin SeaterTwin Seater

Three SeaterThree Seater

......

Michael KramerMichael Kramer

Main 9855Chicago TX 65095

Name

Ship To

Balance Due USD 1303.84AddAdd

A/R Invoice + Payment

Payment Means

Check

Bank Transfer

Credit Card

Cash

USD 1000.00USD 1000.00

USD 303.84USD 303.84

USD 1303.84Balance Due

Postings in Sales Process for Inventory Items

Purchased Item

Fixed Assets

Inventory Item

Sales Item

100100

Stock Acc.Cost Acc.

Sales Order Delivery A/R Invoice

Revenues AccountSales Revenues – EU

Foreign Revenues Acc.Customer

100100

General Ledger(Value)

Warehouse(Quantity)

Document Flow in Sales

1 2 3

Sales Order Delivery A/R Invoice

Sales Documents and Their Properties

Delivery Order

Quotation

OrderQuotation

A/R Reserve InvoiceQuotation

A/R Credit Memo

Returns

(If No Reference to Delivery)

(Goods Issue)

Quantities Postedin InventoryManagement

Sales Documentfor Correction

Values Postedin GeneralLedger

Reference WhenAdded

Change/Reverse

Sales Document must be Created in the System

DeliveryOrderQuotation

1)

2)

3)

4)

5)

6)

Posts committed quantity

A/R Invoice

Stock Changes in Sales

Model Report: Inventory Status

Quotation

Order + -Delivery for order - -Separate delivery (w/oreference to order) - -

A/R Invoice for delivery

Separate A/R Invoice (w/o reference to delivery) - -

Returns + +A/R Credit memo + +

Sal

es /

AR

In Stock - Committed + Ordered = AvailableTransaction

A/R Reserve Invoice for Order

Pick List

A/R Reserve Invoice (w/o reference to order)

Delivery for A/R Reserve Invoice

+ -

- -

+ Indicates increase in quantity- Indicates decrease in quantity

Functions in Sales – A/R

A/R InvoiceDelivery OrderQuotation

Serial Number andBatch Management

Gross Profit andLast Prices Report

Create DocumentDrafts

Activities

Link to TransactionJournal

Credit Limit Check 1.)

2.)

3.)

4.)

5.)

6.)

Document Generation Wizard

Deliveries to a customer

Summarized A/R Invoice

Invoices need to

be produced

Sales Analyses in SAP Business One

Examples What are the sales figures per customer? Which customer is the most profitable?

Which product is most successful? Which is the most profitable? How are the sales figures distributed among the quarters?

Which products does a certain customer prefer?

How successful is our sales staff? How well does a particular sales employee sell one item in comparison to another one? How are the sales figures per employee and item distributed over the entire year?

Sales analyses provide information on sales by: Customers

Items

Sales employees

A combination of the above

Open Items List

Open Items List: Open Sales Quotations

Open Sales Orders

Open Deliveries

Open …

Sales Process: Topic Summary

Key points from the Sales Process topic: The four main steps in the sales process are:

Sales Order

Delivery

A/R Invoice

Incoming Payment

Each sales document has a different effect on inventory and/or accounting.

Key master data used in sales: business partner and items

Key reports in sales process: open items list and sales analysis

Exercises for the Sales Process

Handling Issues in Sales: Unit Overview Diagram

Sales – A/R

Topic 1: Sales Process

Topic 2: Handling Issues in Sales

Returns

Returns

5050

Stock AccountCost Account

Delivery

Warehouse(Quantity)

General Ledger(Value)

50

Cost Account

50

Sales Returns

Credit Memo

5050

Stock Acc.Cost Acc.Sales

RevenuesCustomer

100100

Warehouse(Quantity)

General Ledger(Value)

100

Customer

100

Revenues Acc.

50

Cost Acc. Stock Acc.

50

Negative rows on marketing documents

Make corrections directly in a marketing document without a credit memo

Negative rows can be added to: Delivery A/R Invoice Returns A/R Credit Memo

Example: customers can get a credit for returning packaging while ordering more items.

Troubleshooting Issues in Sales: Topic Summary

Key points from this topic: If no A/R invoice has been created, use a Return document to receive

items from a customer.

When correcting a problem after the A/R invoice has been created, use an A/R credit memo.

Negative rows can be added to marketing documents.

Exercises for Troubleshooting Issues in Sales

Sales – A/R: Unit Summary

You should now be able to: Complete the basic steps of the sales process

Understand the consequences of each step on inventory and accounting

Handle issues that arise with in delivery and billing