the sales order creation process
Post on 14-Apr-2018
253 Views
Preview:
TRANSCRIPT
-
7/27/2019 The Sales Order Creation Process
1/12
The Sales Order Creation Process
Page 1 of 12
The Sales Order Creation Process
BY:Shirshendu Mukhopadhyay
Subject Matter Expert SAP SD
Dexler Information Solutions (P) LTD
-
7/27/2019 The Sales Order Creation Process
2/12
The Sales Order Creation Process
Page 2 of 12
INDEX
Abstract - 3
Introduction to Organizational Units in Sales and Distribution - 4
Assignment of Organizational Units in Sales and Distribution - 5
Creation of Sales Area - 5
Master Data in sales and distribution - 7
Sales Order Creation - 10
Structure of sales order - 11
Conclusion - 13
-
7/27/2019 The Sales Order Creation Process
3/12
The Sales Order Creation Process
Page 3 of 12
Abstract
This white paper provides information on the process of sales order creation. It explains the various
organizational units used in Sales and distribution, their assignment, and the creation of sales order. This
paper also gives a brief overview of how to create the required Master data in sales and distribution, once
the sales area is generated, that helps in Sales order creation.
Introduction to Organizational Units in Sales and Distribution
Company code
In simple terms, a company code represents a company. It is a legal entity and an independent accounting
unit. This is defined by the FI module. This is mainly done for statutory purposes. At company code level,
you can create the balance sheet required by law and the profit and loss statement.
Sales Organization
A sales organization is an organizational unit in sales and distribution which groups the enterprise according
to the requirement of sales and distribution. It is responsible for distribution of goods and services,
negotiating sales conditions, product liability, and rights of recourse. In sales and distribution the sales
organization is the highest summation level and all sales and distribution documents, that is, all sales orders,outbound deliveries, and Billing documents are assigned to a sales organization.
Distribution Channel
It is the means through which the sales materials reach the customer. For example, wholesale trade, retail
trade, direct sales and so on.
Division
A division represents a product group. It can also be used to group material and services.
Sales Area
A sales area is a combination of sales organization, distribution channel, and division. It defines the
distribution channel that a sales organization uses to sell products of a certain division. Each sales and
distribution document is assigned to exactly one sales area.
-
7/27/2019 The Sales Order Creation Process
4/12
The Sales Order Creation Process
Page 4 of 12
Plant
Plant is a location where relevant stocks are kept. In sales and distribution, a Plant represents the location
from which materials and services are distributed; it corresponds to a distribution center.
Shipping point
The Shipping point is the highest level of organizational unit of shipping that controls the shipping activities.
Each outbound delivery is processed by exactly one shipping point. The shipping point can be a loading
ramp, a mail depot, a rail depot or a group of employees responsible for organizing very urgent deliveries.
ASSIGNMENT OF ORGANIZATIONAL UNITS IN SALES AND DISTRIBUTION
Company code
Many to one
Many to one
Sales organization Many to oneMany Many to Many
to stribution Channel Sales Area
Many Many to Many Sales organization, Distribution
Division Channel, Division form the sales
Plant area
Many to Many Shipping Point
CREATION OF SALES AREA
The assignment between sales organization and Company Code is unique. The Company code is defined in
the system by FI. After that we define the sales organization and assign it to the company code. We define
the sales organization in customizing by following the menu path:
-
7/27/2019 The Sales Order Creation Process
5/12
The Sales Order Creation Process
Page 5 of 12
SPRO -> Enterprise structure -> Definition -> Sales and Distribution -> Define, Copy, Delete, check sales
organization -> Define sales organization.
To assign the sales organization to Company code, we follow the menu path:
SPRO -> Enterprise structure ->Assignment -> Sales and Distribution ->Assign Sales organization to
Company Code
Many Distribution Channels can be assigned to many sales organizations. The Distribution channel is
defined in Customizing using the menu path:
SPRO -> Enterprise structure -> Definition -> Sales and Distribution -> Define, Copy, Delete, check
Distribution Channel ->Define distribution Channel
The assignment of Distribution channel to sales organization is carried out in customizing by following thegiven menu path:
SPRO -> Enterprise structure -> Assignment -> Sales and Distribution -> Assign Distribution Channel to
Sales Organization.
There is no organizational assignment between Division and Distribution. Division is assigned to Sales
Organization and this is not a unique assignment. Division is also defined in Customizing by following the
menu path:
SPRO -> Enterprise structure -> Definition ->Logistic General -> Define, Copy, Delete, Check Division.
Division is assigned to the Sales organization in customizing by following the menu path:
SPRO -> Enterprise structure ->Assignment -> Sales and Distribution -> Assign Division to Sales
Organization.
Once the Sales organization, Distribution Channel, and Division has been defined and assigned, the sales
area can be set up. The Sales area is set up in customizing by following the menu path:
SPRO -> Enterprise structure ->Assignment -> Sales and Distribution -> Set up Sales Area.
The Plant is defined by materials management and is assigned to the company code. In Sales and
distribution, we assign the Plant to the sales organization in customizing by following the menu path:
SPRO -> Enterprise structure ->Assignment -> Sales and Distribution ->Assign Sales organization >
Distribution Channel > Plant.
-
7/27/2019 The Sales Order Creation Process
6/12
The Sales Order Creation Process
Page 6 of 12
Once the Sales Area is created, we can create the Master Data in sales and distribution.
MASTER DATA IN SALES AND DISTRIBUTION
The commonly used master data in sales and distribution are: 1) Customer master data 2) Material Master
data 3) Condition master data 4) Customer material info record, and 5) Output master data.
Customer Master Data
A customer master data contains all information regarding a customer. The information in a customer masterdata is mainly maintained in three tab pages: General Data, Company code Data, and Sales area Data.
In the Customer create initial screen, if you enter the company code you will be able to maintain the
company code data. Similarly if you enter the sales area information you will be able to maintain the sales
area data. The account group determines the partner function of the customer.
-
7/27/2019 The Sales Order Creation Process
7/12
The Sales Order Creation Process
Page 7 of 12
A customer can be extended to other sales area as well. The customer master can be created in SAP easy
access screen and the path for creating the Customer master record is as follows: Logistics -> Sales and
Distribution -> Master Data -> Business Partner -> Customer -> Create -> Complete/Sales and Distribution.
For creating complete Customer master record the transaction code is XD01 and for sales and distribution it
is VD01.
Material Master Data
A material master data can be created based on different views through which the material master gets
created in different organizational levels. The different organization levels at which the material master can
be created are sales organization, Distribution channel, Plant, storage location and warehouse number.
The material master record is created by using the following menu path in SAP EASY access screen:
Logistics -> Sales and Distribution -> Master Data -> Products -> Materials -> Trading goods -> Create. The
transaction code is MM01.
-
7/27/2019 The Sales Order Creation Process
8/12
The Sales Order Creation Process
Page 8 of 12
Condition master Data
The condition master data includes information about prices, surcharges and discounts, freights and taxes.
The condition master data can be created based on customer and material.
Once the Customer master, Material master, and Condition master records are created, we can create the
sales order.
SALES ORDER CREATION
Based on the customers enquiry, a Quotation is created and sent to the customer. The Customer then
sends us the Purchase order based on which the Sales Order is created. In the system, we can create the
quotation by following the menu path: Logistics -> Sales and Distribution -> Sales -> Quotation create.
-
7/27/2019 The Sales Order Creation Process
9/12
The Sales Order Creation Process
Page 9 of 12
The Sales order can be created with/without reference to a Quotation. When we create a sales order with
reference to a quotation, the Sold-to-party, ship-to-party, requested delivery date and item information get
copied from the quotation to the Sales order. A standard sales order contains information related to
Customer and Material, Price, Delivery dates and Delivery Quantities, Shipping and Billing.
The menu path for creating a standard order is as follows: Logistics -> Sales and Distribution -> Sales ->
Order -> Create or else we can also use the transaction code VA01.
In the Create Sales order: Initial screen, we need to enter the order type. The commonly used order type is
Standard order (OR). In this screen it is not essential to enter the organizational data like Sales
Organization, Distribution Channel, Division, Sales Office and Sales Group. When we enter this data, the
sales area for the sales order is determined from it.
STRUCTURE OF SALES ORDER
A Sales document is divided into three levels: Header, Item, and Schedule line. In the Create Sales Order:
initial screen, once we enter the Order type and press Enter, we reach the Create : Overview
screen.
-
7/27/2019 The Sales Order Creation Process
10/12
The Sales Order Creation Process
Page 10 of 12
When we enter the sold-to-party field, the Ship-to-party and Sales area is determined from the Customer
master.
In this screen, the requested delivery date is determined from the Lead time field in the Sales order type. We
can change this date as per the customers requirements. If we enter the sales area data in the Create
Sales Order: Initial screen, then system determines this date, based on the Factory calendar and the Lead
time in days, from the Order type.
To create a complete sales order, the necessary fields that we need to enter are: Sold-to-party, Purchase
order, Requested Delivery date, Material, and the Order Quantity.
Fields like Item Description, Item Category, Plant, Amount, Currency, Product hierarchy, Division (Item
Division), Storage Location, Shipping point, Net Weight, and Gross Weight are determined from the Material
master record. All these are at the Item level.
In the header level, Field like Net weight is determined from the Material master record.
The Partner functions in the Partner tab page of the header and item level is determined from the customer
master record.
The schedule line is determined based on the customer-requested delivery date. One of the main objectives
of scheduling is to determine the material availability date.
-
7/27/2019 The Sales Order Creation Process
11/12
The Sales Order Creation Process
Page 11 of 12
Once the Sales order is created, we can create the delivery document. The delivery is created based on the
schedule line date. It is created on or after the Confirmed material availability date in the schedule line.
-
7/27/2019 The Sales Order Creation Process
12/12
The Sales Order Creation Process
Page 12 of 12
CONCLUSION
This White Paper described the necessary steps to be followed before creating the sales order.
A sales order can be created only when the organization units in sales and distribution are defined and
assigned appropriately to create the sales area. Once the sales order is created, we need to create the
necessary master data according to the sales area or the sales organizations and then we can create the
sales order.
Once the sales order is created, the delivery process can be initiated.
---------------
top related