sap business overview

8/20/2019 SAP Business Overview

1/75

SAP Order to Cash Business Process

Introduction


2/75

Agenda

- Integrated view of SAP

- High Level Business Process Break up

- Overview of O2C Process

- Organiational Structure in O2C

- Appendi!


3/75

Integrated overview of SAP

"arious #odules availa$le in SAP %&' to #ap a enterprise $usiness process


4/75

High Level Business Process Break up

We can break up various business functions which any

organization employs ideally into 4 major components

Production Planning (P2P) Production planning is the planning ofproduction and manufacturing processes in a company or industry! "t utilizes the

resource allocation of activities of employees# materials and production capacity# in

order to serve different customers

$aterial $anagement ($$) $aterials $anagement can be definedas an integrated approach to manage the entire need# flow and cost related to

materials by any firm

%rder to &ash (%2&) ' $echanisms to eecute the business processesused in the selling# shipping and billing of products and services

inance (") " deals in managing financial transactions within enterprises!


5/75

Overview of O2C Process


6/75

*ales %rder

+ntry

"nvoice

&ustomer

Payment

Presales

,ctivities

*hipping

High Level view of Order to Cash Processing


7/75

O2C Process ( Pre-Sales Activities

Presales documents need to be managed within the presales activities-In)uiries and *uotations! .hese documents help identify possible salesrelated activity and determine sales probability!

,n in/uiry is a customer0s re/uest to a company for information or /uotation in

respect to their products or services without obligation to purchase!

How #uch will it cost

+aterial&Service availa$ilit,

+a, contain specific )uantities and dates

.he in/uiry is maintained in the system and a /uotation is created to address

/uestions for the potential customer

.he /uotation presents the customer with a legally binding offer to deliver

specific products or a selection of a certain amount of products in a specified

timeframe at a predefined price!


8/75

O2C Process Sales Order .ntr,

, *ales %rder is a record of your customer0s re/uest for 1oods *ervices

.he sales order contains all of the information needed to process your

customers re/uest# the following information is determined for each sales

order-3 $aster ata ' &ustomer and $aterial

3 elivering *chedule

3 *hipping point and route determination3 ,vailability &heck

3 .ransfer of re/uirements to $5P

3 Pricing

3 &redit limit check

6arious types of *ales %rder are3 5ush %rder

3 &ash *ales

3 &onsignment *ales

3 5eturns

3 ebit and &redit memo


9/75&opyright 7 2899 eloitte evelopment ::&! ,ll rights reserved!/

O2C Process (Shipping

.he shipping process begins when we create the deliver, docu#ent for the sales order!

elivery ocument checks order and materials to determine if a delivery is possible ;

delivery block (hold)# completeness

.his document controls# supports# and monitors numerous subprocesses for shipping

processing-

3 Picking

3 Packing

3 Post 1oods "ssue

"ntegrated with the $aterial $anagement ($$) and inance (") modules

3


10/75&opyright 7 2899 eloitte evelopment ::&! ,ll rights reserved!01

O2C Process ( Billing

.he billing process is used to generate the customer invoice!

.he billing document is created by coping data from the sales order andor

delivery document!

3 %rderbased billing

3 eliverybased billing

.he billing document will automatically create a debit posting to the customer

subledger account and credit company revenue account

"t is at this point that the sales process is passed over to inancial ,ccounting

to await payment!



O2C Process( Pa,#ent

Payment is the final step in the sales order process# thisstep is managed by the inancial ,ccounting

department!

inal payment includes-

3 Posting payments against invoices!3 5econciling differences between payment and invoice!

Payment will create a posting clearing the liability in the

,5 account and decreasing your bank account!



SAP A3A


13/75&opyright 7 2899 eloitte evelopment ::&! ,ll rights reserved!0'

3ransactional ata



Organiational Structure

%rg *tructure +nterprise structure in *,P is a structure of *,P organizational units

that reflects the structure of the business in the real world!

.here are various *,P organizational units that can be mapped to business

structure based on the real world business re/uirements such as- &lient# &ompany

&ode# Plant# *torage :ocation# *ales %rganization# istribution &hannel# ivision#

*ales %ffice# *ales 1roup# *ales Person# *hipping Point# :oading Point# etc!

%rganizational units may be assigned to a single module (such as a sales

organization assigned to *ales and istribution (*) module# or to several modules

(such as a plant assigned to $aterials $anagement ($$) and Production Planning

(PP) module)!

+nterprise structure design is a fundamental process in a *,P implementationproject! .he design is mainly determined by the business scenarios performed in an

enterprise! %nce the design is determined# it will affect many things such as how to

perform a transaction and generate reports on *,P system



Org Structure in SAP O2C



&lient

&ompany &ode

*ales ,rea

' *ales %rganization ' istribution &hannel

' ivision

Plant

*hipping Point

:oading Point

"nternal *ales *tructure3 *ales %ffices

3 *ales 1roups

3 *alesperson

O2C( Organiational Structures



Organiation Structure ( efinitions

Client - "n the *,P landscape# a client is an entity with independent information and data! &lient

specific data includes user master data (including authorizations and user groups)# data

customization and applicationbusiness data!

Co#pan, - , company is an organizational unit in ,ccounting (") which represents a business

organization for which individual financial statements can be drawn according to the relevant

commercial law!

Sales Organiation -

*ells and distributes products# negotiates terms of sales and is responsible for thesebusiness transactions

&ritical organization element to the definition of business markets

*ales %rganization is liable for sold products# responsible for the customers right of recourse

= negotiating sales condition!

*ales %rganization can be assigned to one or more plant! .his assignment is not uni/ue# so

several *ales %rganizations can also be assigned to one plant! +ach *ales %rganization has its own master data# for eg customer = material master data#

as well as conditions# pricing = output type!

, *ales %rganization is the highest level (after the &lient) to which sales figure are summed

for * with statistics currency!

*ales %rganization is also used to take regional# national# international subdivision of the

market into account!



Organiation Structure ( efinitions9Contd

istri$ution Channel -

"dentifies how products and services reach the customer

, istribution &hannel represents the strategies to distribute goods and or services to the

customers! +g- wholesale# retail# institutional# etc!

istribution &hannel can be assigned to one or more *ales %rganization!

*ame customer can be served through one or more istribution &hannel# within a *ales

%rganization!

istribution &hannel can be set as per company>s marketing strategies or internalorganization!

$aster data can vary (&ustomer = material $aster data# Prices# discounts surcharge#

output type# etc) for each *ales %rganization = istribution &hannel# i!e# within istribution

&hannel master data can be defined separately!

istribution &hannel can be used as selection criteria for creating lists!

ivision -


19/75

&opyright 7 2899 eloitte evelopment ::&! ,ll rights reserved!0/

Organiation Structure ( efinitions9Contd

Sales Area - %rganizational element comprised of- ' *ales %rganization # istribution &hannel =

ivision 3


20/75

&opyright 7 2899 eloitte evelopment ::&! ,ll rights reserved!21

Structure for O2C Processing

&lient 498

&ompany &ode&988

Plant P988 Plant P989

Sales Area

*ales %rg*988

istribution

&hannel (5+)

ivision

(89)


21/75



22/75



23/75

&opyright 7 2899 eloitte evelopment ::&! ,ll rights reserved!2'

Internal Sales Structure


24/75


Structure for istri$ution

&lient 498

&ompany &ode

&988

Plant P988 Plant P989

*hipping Point

+press ock

:oading Point

:P89

*hipping Point

reight ock

*hipping Point

5ail ock

:oading Point

:P82

:oading Point

:P8A


25/75


+aster ata


26/75


+AS3.% A3A $aster data is very important for all *,P modules!

.heses are fleible data records that support the business environment andremains in the database for a long period of time! it also has an organizational

aspect as it is assigned to organizational units! *o# if there is something wrong

with master data it will have big impact on the process! we can find the most

important master data for * Processes in *,P as below-

&ustomer $aster

$aterial $aster &ondition $aster ata for Pricing

&ustomer ' $aterial "nfo 5ecord

%utput $aster ata

$aster data is created centrally and can be used in all applications! or

eample# a customer is master data that can be used in customer re/uests#orders# deliveries# invoices# and payments!

+ven there are different methods to create them in *,P system# like manually

created (if number data are limited) or through :*$W (where volume data to

created is on higher)!


27/75


O2C( +aster ata

Custo#er +aster ata

+aterial +aster ata

Cust&+at Info %ecord

Output +aster ata

Condition +aster ata


28/75


Custo#er +aster ata

&ustomer $aster 3 &ontains all of the informationnecessary for processing orders#

deliveries# invoices and customer

payment3 +very customer $


29/75


Custo#er +aster ata

• .he customer masterinformation is divided

into A areas- – 1eneral ata

– &ompany &ode ata

– *ales ,rea ata


30/75

&opyright 7 2899 eloitte evelopment ::&! ,ll rights reserved!'1

Custo#er +aster

Co#pan, Code 012

&ompany &ode 989&ompany &ode 988

&lient 498

*ales %rg! 989

*ales %rg! 988

:eneral Infor#ation relevant for the entire organization- @ame

,ddress

&ommunication

Co#pan, Code specific infor#ation-

,cc! $gmt

Payment

Gank

Sales Area specific infor#ation-

*ales %ffice

&urrency


31/75


+aterial +aster ata

$aterial $aster 3 &ontains all the information a

company needs to manage about a

material

3 "t is used by most components within

the *,P system

' *ales and istribution

' $aterials $anagement

' Production

' Plant $aintenance

' ,ccounting&ontrolling

' Huality $anagement

3 $aterial master data is stored in

functional segments called 6iews


32/75


+aterial +aster "iews

$aterial $aster

Gasic ata

*ales ata

&ontrolling ata

orecasting ata

Purchasing ata

$at! Plan! ata

,ccounting ata

*torage ata

Huality ata


33/75

&opyright 7 2899 eloitte evelopment ::&! ,ll rights reserved!''

+aterial +aster

Plant 012

Plant 989Plant 988

&lient 498

*torage :ocation 28

*torage :ocation 98

:eneral Infor#ation relevant for the entire organization- @ame

Weight


34/75


Condition +aster


35/75


Custo#er-+aterial Infor#ation %ecord

ata on a material defined for aspecific customer is stored in a

&ustomer material info record!

"nfo 5ecords contain-

3 customerspecific material number

3 customerspecific material description3 customerspecific data on deliveries and

delivery tolerances

Iou can also maintain default tet to

appear on sales orders for thatcustomer


36/75


Output

%utput is information that issent to the customer usingvarious media# such as-3 +mail

3 $ail

3 +"3 a

3 J$:

%utput eamples-3 Huotation

3 &onfirmation

3 "nvoice


37/75


3ransactional ata


38/75


3ransactional ata

ata is created in *,P as a result of a business user completing abusiness transaction such as creating *ales %rder

.hese are the business documents that you create using the master

data!

.ransactional ata can change very often and are not constant! ,nd thisdata is createdmodified out of an application transaction!

3he %ush#ore :roup> LLC '8


39/75

&opyright 7 2899 eloitte evelopment ::&! ,ll rights reserved!'/

Pre Sales Activities

"n/uiry

3he %ush#ore :roup> LLC '/


40/75


Structure of Sales ocu#ent

3he %ush#ore :roup> LLC 41


41/75



42/75


Cross +odule Interaction "iew O3C

?inancials@arehouse

+anage#entSales ; istri$ution

*uotation

docu#ent

Business Document

Sales Order

docu#ent

Business Document

Account

Balancing

eliver,

docu#ent

Business Document

B i l l i n g

* u o t a t i o n

S a l e s O r d e r $ a s e d o n ) u o t a t i o n r e f

A v a i l a $ i l i t , c h e c k a n d p r o d u c t a l l o c a t i o n

n $ l o c k s a l e s o r d e r

C r e d i t L i # i t C h e c k

2 e l i v e r ,

P i c k i n g a n d c o n f i r # a t i o n

P a c k i n g

P o s t g o o d s i s s u e

I n c o # i n g p a , # e n t

Sales Order

docu#ent

Business Document

Sales Order

docu#ent

Business Document

Sales Order

docu#ent

Business Document

eliver,

docu#ent

Business Document

eliver,

docu#ent

Business Document

Co#pleted

eliver, doc

Business Document


43/75


Overview of 3a$le Structure in O2C


44/75




45/75



46/75



47/75



48/75



49/75



50/75


O d t C h ?l ith SAP 3 C d d 3 $l


51/75


Order to Cash ?low with SAP 3 Codes and 3a$les


52/75




53/75


Appendi!


54/75




55/75




56/75




57/75




58/75

O2C ( SAP 3a$les and ?ields


59/75

&opyright 7 2899 eloitte evelopment ::&! ,ll rights reserved!5/5/


60/75

&opyright 7 2899 eloitte evelopment ::&! ,ll rights reserved!61C8 61

Order to Cash Processing ?low iagra#


61/75



62/75


63/75


64/75

Pre-Sales Activities - In)uir,

,n in/uiry is a customer0s re/uest to a company for

information or /uotation in respect to their products

or services without obligation to purchase!3 ?ow much will it cost

3 $aterial*ervice availability

3 $ay contain specific /uantities and dates

.he in/uiry is maintained in the system and a

/uotation is created to address /uestions for the

potential customer!


65/75

Pre-Sales Activities - *uotation

.he /uotation presents

the customer with a

legally binding offer to

deliver specific

products or a selectionof a certain amount of

products in a specified

timeframe at a pre

defined price!


66/75

O2C ( Sales Order .ntr,


67/75

Sales Process Sales Order .ntr,

.he sales order contains all of the information neededto process your customers re/uest# the following

information is determined for each sales order-

3 elivering *chedule

3 *hipping point and route determination3 ,vailability &heck

3 .ransfer of re/uirements to $5P

3 Pricing

3 &redit limit check

S O S


68/75


Sales Order( eliver, Scheduling

When an order is created the you must entera re/uested delivery date for the order or

each line item!

.he system will then determine a deliverytimeline# this will be used when determining

our material availability# or ,.P (,vailablity to

Promise) date!

.he system will determine this date using

forward and backward scheduling rules you

have defined!

S l O d Shi i ; % t t i ti


69/75


Sales Order( Shipping ; %oute eter#ination

uring the creation of the sales order the systemmust determine the shipping point from which the

material will be shipped and the route the material

will take to get from your warehouse to your

customers location!

, shipping point is determined for each line item

within the order!

.he route determination will is used to define thetransit time of the material that we used in

scheduling!

Sales Order( Availa$ilit, Check


70/75


Sales Order( Availa$ilit, Check

,vailability &heck3 etermines the materialavailability date

3 &onsiders all inward and outwardinventory movements

Proposes A methods ofdelivery3 %netime delivery

3 &omplete delivery

3 elayed proposal

5ules are created by I%<

S l O d 3 f t Pl i


71/75


Sales Order( 3ransfer to Planning

.he order is transferred to $aterial 5e/uirements Planning asan (&"5) &ustomer "ndependent 5e/uirement! "f a deficit is

found the system will propose a Purchase 5e/! or %rder to fulfill

the shortage!

S l O d P i i


72/75


Sales Order( Pricing

.he system displays pricing information for all salesdocuments on the pricing screens at both the header and the

line item level!

3 ?eader pricing is valid for the whole order it is the cumulitive of all line

items within the order

3 :ine item pricing is for each specific material!

.he system will automatically search for price# discounts#

surcharges# calculate taes and freight! Iou have the ability

to manually manipulate the pricing at both the header and

line item level within the sales order by entering a condition

type and amount!

3 .aes and freight can be setup so we can0t manually enter!

S l O d C dit Ch k


73/75


Sales Order( Credit Check

,llows your company to manage its credit eposure and risk for each

customer by specifying credit limits!

uring the sales order process the system will alert the sales rep about the

customers credit situation that arises# if necessary the system can be

configured to block orders and deliveries!


74/75

O2C ( eliver,

eliver,( Shipping ; 3ransportation


75/75

eliver,( Shipping ; 3ransportation

.he shipping process begins when you create the deliver, docu#ent for the

sales order! .his document controls# supports# and monitors numerous subprocesses for shipping processing-

3 Picking

3 Packing

3 Post 1oods "ssue

"ntegrated with the $aterial $anagement ($$) and inance (") modules

sap business overview

Documents