rl_sales order overview_do - 7-22-2014 (2)

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Sales Order Overview: Detailed Outline

Document OverviewThis Detailed Outline expands on the High-Level Content Outline by providing a detailed description of the functionality and content of each screen in the course without moving into full scripting. The Detailed Outline serves as the final outline before the script is drafted.

The next writing deliverable is the Script, which will provide a word-for-word depiction of what will be said in the course.

Course ObjectivesBy the end of this course, learners will be able to:

Describe the key components that are required for the New Customer Account Setup process

Describe each of the high level steps in the sales order process

Define the mandatory data required to complete a sales order

Explain the high-level steps in the allocation process

Know when to use primary and secondary order reasons in sales orders

Describe how pricing and condition records work in SAP

Differentiate between sales contracts and sales orders

Describe the customer invoicing process


Screen Types Presentation: A presentation screen is the simplest screen type. It commonly features audio, text, and an image to present a single

concept or topic. They are used most frequently for introduction, transition, and conclusion purposes. Another common use for them is to introduce and conclude complex activities.

Explore: Explores are interactive screens that allow learners to review individual elements of a larger concept in an organized, logical order or layout. When learners click items, or nodes, related text or images appear on the screen. Standard explore functionality requires learners to click each available node before advancing to the next screen.

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Graphical Explore: Graphical explores are customized variations of the standard explore format. While a standard explore features text and/or image nodes in a uniform, templated format, a graphical explore uses a larger graphic with integrated hotspot as the clickable node areas. This visual format is useful for studying diagrams, illustrated workflows, or concept maps.

Multiple Choice: A multiple-choice screen presents a question to learners, who then select the best response. Responses are paired with feedback to shape learners’ understanding of the concept. Learners must try again until the one correct answer is selected.

Montage: A montage arranges audio, text, and images into a fluid sequence. They are typically used to illustrate sequential concepts or a progression of steps, or as a technique for advancing a narrative.

Skill Drill: A skill drill is an expanded explore screen that links to other screens or overlays, functioning as a “hub” for more complex interactions. When learners click on the explore nodes, another screen type appears with related content, typically an explore or presentation screen. After reviewing this other screen, learners click to close it and return to the hub. This screen type is used primarily to group larger concepts together and present them in a meaningful order for closer analysis and comparison.

Drag and Drop: The drag and drop screen is a complex screen type that allows the player to sort or match information. It commonly features a “corral” which contains a number of draggable objects, which can be moved around the screen and placed on different targets. Draggers can be either short phrases or icons. Drop items may either snap back when incorrect, or require the player to place them all first and click Submit. Drag and drop screens assess player performance by presenting feedback.

Detailed OutlineModule A: Introduction

Screen /Type Content Image Description and/or Storyboard

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Animation

IntroductionThis screen will introduce learners to the Sales Order Overview curriculum and outline the course objectives.

Order to Cash, or OTC, generally refers to the business process for receiving and processing customer sales. At Ralph Lauren, the high-level steps in the order-to-cash sales order process include:

Sales order entry and maintenance

This high-impact animation will feature stylized graphics, text, and sample screens. The animation will present core concepts using a design aesthetic similar to that of the Master Data course.

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Sales processing

Allocation run

Delivery creation and integration with the

warehouse management system PkKMS

Customer invoicing or billing

Accounts receivable and collections

By the end of this course, learners will be able to:


Describe the each of the high level steps in the sales order process

Define the mandatory data required to complete a sales order

Explain the high-level steps in the allocation process

Know when to use primary and secondary order reasons in sales orders

Describe how pricing and condition records work in SAP

Differentiate between sales contracts and sales orders

Describe the customer invoicing process


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Module B: Sales Order Process Creation and Maintenance


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Skill Drill

Sales Order Process Creation and MaintenanceThis screen will introduce the high level steps in the sales order processcreation and maintenance:

Enter details into the sales order

Set up rules for listing or excluding products

Check sales order for errors and incompleteness

Validate/set the delivery block

Select DC or warehouse

Determine the sales price

Set credit limit or credit block

Check for incompleteness

Store Enter internal/external comments

Generate order number

This screen will feature a workflow-style diagram of the sales order process. Each step in the workflow will serve as a clickable node, so that learners can explore in-depth information about the steps in the process. Nodes will appear as presentation and explore screens.

Include the items that’s crossed out in the audio. These items are done systemically.

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Explore

Enter Details into the Sales OrderTo enter details into the sales order, users must:

Create a sales order with the customer’s specification of the customer information and the customer PO number

Enter the style numbers as provided in the PO

Enter the SKU or size-level quantities at the level below the item level (schedule line-level data)

Key customer account information includes:

Learners must select each node to learn more about key customer account information. Selecting a node will reveal in-depth information about each topic.

Nodes include: Customer, PO Number, Material, Dates, Item Category, SKU Level Entry, and AFS Category

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Customer

PO Number

Material

Dates

Item Category

SKU Level Entry Size level quantity

AFS Category

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Presentation

Set Up Rules for Listing or Excluding ProductsPeriodically, a customer may sell Ralph Lauren materials exclusively. In SAP, a list of materials can be created for the customer. Materials on this list will be sold exclusively to the customer referenced on the list. Customers that are not part of the list cannot purchase the same material.

Set up rules graphic and text; may include Ralph Lauren stylized graphic

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Explore

Check Sales Order for Errors and IncompletenessThis step checks for any errors such as blocked orders and for incompleteness.

Any incomplete orders will be systematically blocked for maintenance. However, the majority of incomplete orders will be allocated.

Account Analysts must run the blocked orders report daily to resolve sales orders with blocks.

The system will automatically place a block on a sales order if:

The sales document is incomplete

There is reference to a sales contract when the

Learners must select each node to learn more about why a sales order might be blocked. Selecting a node will reveal in-depth information about each topic.

The screen will start with empty nodes; content will be revealed upon node selection.

Nodes include the bulleted reasons listed to the left.

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sales order is transmitted via EDI

The item category (TAS, TAB, and TAN) is missing from the item category field

The item category is invalid

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Presentation

Validate/Set the Delivery BlockIn SAP, there is an option to manually apply or remove an order block to make edits. If errors are found in the sales order , or if further approvals or maintenance are required, a block can be manually applied to the order. After the order is reviewed and updated, the block should be removed.

Validation graphic and text; may include Ralph Lauren stylized graphic

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Presentation

Select DC or WarehouseThe system will determine the default plan from the material master for standard pick-pack orders. For Direct and Drop Ship processes, the plant is determined based on the business process.

DC or warehouse graphic and text; may include Ralph Lauren stylized graphic

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Presentation

Determine the Sales PriceThe pricing management function in SAP is used to determine pricing on sales orders and sales contracts. The process is a calculation of sales price on the sales order or sales contract using the condition records created and available in SAP.

The sales price on an order for each material is based on various criteria, such as material attributes, customer, and pricing/discount agreements between Ralph Lauren Sales and the customer.

Specific rules can be defined in the pricing table to create a pricing condition, such as applying discounts, freight,

Sales price graphic and text; may include Ralph Lauren stylized graphic

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and tax.

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Explore

Set Credit Limit or Credit BlockAll sales orders will be credit checked systematically and blocked if they exceed the credit limit. The credit limit is defined for each account in the FSCM module. Orders having a credit block will allocate but not release for delivery.

Node 1: Credit Management ProcessThe Credit Management process deals with credit checks that are executed throughout Demand and Supply Chain Management processes, specifically prior to allocation and pick. The process also checks the credit limit of a customer and tracks the past due balance along with one-day credit exposure.

The key Credit Management processes include customer evaluation, automated credit release, and risk calculation.

Node 2: Pre-PaymentInternal and external customers of Ralph Lauren may be required to pay for all or part of their order prior to shipping.

For external customers, determination is based on data gathered by the RL Credit team. The order is automatically blocked until payment is received. After payment is received from the account, the credit block will be removed by the RL Credit team.

For internal customers, orders must be paid for prior to receiving or shipping. The accounts used to process employee orders will be configured for automatic credit block. Once payment is received, the RL Credit team will remove the block.

Learners must select each node to learn more about credit limits and credit blocks. Selecting a node will reveal in-depth information about each topic.

Nodes include: Credit Management Process and Pre-Payment

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Presentation

Check for IncompletenessIncomplete orders will be systematically blocked for maintenance. However, the majority of incomplete orders will be allocated.

The Account Analyst must run the blocked orders report daily to resolve sales orders with blocks. The Analyst will see the results displayed, and will then take action on these blocked orders.

Incomplete graphic and text; may include Ralph Lauren stylized graphic

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Explore

Store Enter Internal/External CommentsFree text can be manually added to sales orders The Account Services team can manually add free text in the sales order . You can enter when it is necessary to maintain additional order-specific information or special instructions in the internal or external comments fields.

Node 1: Internal CommentsInternal comments can be entered on sales orders, which will be visible on the sales order and delivery document. Any comments or instructions in this field The instructions will not be printed on sales documents sent to customers.

Node 2: External CommentsExternal comments can be entered on a sales order and can be physically printed on sales documents to be sent to other departments within Ralph Lauren or to third-party customers.

Additionally, files can be stored and saved in the order itself for future reference.

Learners must select each node to learn more about internal and external comments. Selecting a node will reveal in-depth information about each topic.

Nodes include: Internal Comments and External Comments

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Presentation

Generate Order NumberWhen a sales order is created, a specific document number is generated to identify the order. All US

Order number graphic and text; may include Ralph Lauren stylized graphic

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company codes and sales organizations will share the same order number range.

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Montage

Sales Order Process Flows[Note to RL: Please provide example process flows for each of the bullets below. Any additional content would be helpful, as well.]

This screen will provide examples of process flows for the sales order process, including:

Sales order process for Global Drop Ship (GDS) with RL ownership

Sales order process for GDS without RL ownership

Sales order process for Direct Ship–Purchase to Order

Sales order process flow graphics and text

Learners must use an arrow to toggle between multiple graphics. Each graphic will represent a sales order process flow, and will have its own on-screen text and audio.

Montage graphics include the bulleted processes listed to the left.

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Multiple Choice

Knowledge CheckThis screen will feature a multiple-choice question that tests and reinforces learners’ understanding of the sales order process.

Knowledge check graphics and text

Module C: Types of Sales Orders


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Presentation

Standard Sales OrderStandard sales orders (ZOR) are used for standard pick-pack, drop ship, and direct ship sales orders.

[Note to RL: Please provide an example sales order. Are there any fields in the sales order you would like to

Standard sales order graphic and text; may include screenshot

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specifically call out?]

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Standard Sales Order Example with AFS Item Overview highlighted:

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Sample/No-Charge OrderSample/No-charge sales orders (ZOS) are used for merchandise requests from on-hand stock to internal and external customers, such as Design, Sales, Production, Retail Development, Public Relations, and Merchandising.

Divisional advertising, customer requests, PR and editorial samples, marketing events, fit and wear tests,

Sample/No-charge order graphic and text; may include screenshot. Comment: remove references to “sample” – use “No-Charge”.

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quality checks, stock sales, and charitable donations are some reasons for a No-charge order.

These orders require a Cost Center and Order Reason. Order reason is mapped to a general ledger number.

Sample/No-charge orders will not create a customer invoice.

[Note to RL: Please provide an example sales order. Are there any fields in the sales order you would like to specifically call out?]

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Employee Sales OrderEmployee sales orders (ZOE) are used for sales orders placed by Ralph Lauren employees.

[Note to RL: Please provide an example sales order. Are there any fields in the sales order you would like to specifically call out?]

Employee sales order graphic and text; may include screenshot

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Multiple Choice

Knowledge CheckThis screen will feature a multiple-choice question that tests and reinforces learners’ understanding of the types of sales orders.


Module F: Sales Order Allocation and Release Overview


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Explore

Sales Order AllocationRalph Lauren allocates available stock in the Distribution Center (DC) or Third Party Location (3PL) to sales contracts and sales orders, based on business and/or customer-specific rules and priorities.

Allocation rules are flexible to meet Customer, Door, Brand and Merchandise Division requirements. A-Run allocates using FPFO (First Priority First Out) based on customer priorities and all orders and contracts within a

Learners must select each node to learn more about sales order allocation. Selecting a node will reveal in-depth information about each topic.

Nodes include: Requirements/Stock Selection, Requirements Checking, Requirements Grouping, Sorting/Prioritization, Allocation Execution, Release, and Optimizer/De-allocations

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selection window (e.g. start ship date). FIFO (First In First Out) is considered for BSR customers placing BSR products via EDI.

The allocation process includes the following steps:

Node 1: Requirements/Stock SelectionSelect sales documents to be allocated based on predefined criteria found in SAP Selection Sets..

The Requirements selection includes sales contracts and sales orders, and all documents with a requested delivery date within the defined Allocation Date Window. [Fiscal Month End]

The Stock selection includes on-hand inventory, inbound deliveries, and factory orders.

Node 2: Requirements CheckingPerform additional checks on the sales documents. Incomplete sales documents will allocate unless mandatory fields are missing.

Node 3: Requirements GroupingGroup customer orders based on predefined criteria to apply release rules that group as a whole. The predefined criteria/grouping is by customer and customer PO.

Node 4: Sorting/PrioritizationSort and prioritize sales documents based on predefined criteria within each Merchandise Organization. For example, sort documents by customer groups, such as VIP, Intercompany, Golf, Lux, Specialty, Ecom, Department stores, and/or Discount customer.

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Sorting is the tool for optimal distribution of insufficient stock quantity among sales documents. Sorting rules for Fashion orders include Order Reason, Delivery Priority, Cancel Date, and Start Date. BSR orders are sorted by Order Number.

Node 5: Allocation ExecutionDistribute available stocks to sales documents in the sequence they are sorted.

Allocation distributes on-hand inventory according to First Priority First Out (FPFO) for fashion orders, and First In First Out (FIFO) for replenishment orders.

Node 6:Node 7: ReleaseRelease customer orders eligible for pick-ticket creation based on a set of release rules. Manual release can override rules, as well.

Allocation is carried out during an overnight batch job that comprises all of the above steps. All sales documents with open units are included in the overnight allocation, if their requested dates lie within the selected date window. Sales orders will be released to pick if they meet the release parameters.

Node 7:- Node 6: Optimizer/De-allocationsDe-allocate undesired allocation results and change MRP status, or view, change, and manage post-A-RUN results. There is also an option to allocate new orders that have not run through the allocation process.

The A-RUN Optimizer allows for the adjustment and fine-tuning of batch allocation results. Sales documents can be allocated, de-allocated, released, or un-released. Allocations can also be transferred between sales documents.

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Explore

Factors that Impact DeliveryFactors that impact delivery include:

Node 1: Allocation rules Release RulesAllocation rules are flexible to meet Customer, Door, Brand, and Merchandise Division requirements. A-Run allocates using FPFO, based on customer priorities and all orders and contracts within a selection window (e.g. start ship date). FIFO is considered for BSR customers placing BSR products via EDI.

Node 2: Outbound delivery rules (Release to Pick)Outbound delivery rules are based on Sales and Merchandise Organization, Customer Group, Customer Number, and Brand. The majority of Merchandise Organizations auto release-to-pick within the fiscal month, with the exception of Golf.

Node 3: A-Run OptimizerA-Run Optimizer is a tool that can be used to de-allocate, re-allocate, and manually release to pick. Manual allocation will bypass all allocation and release rules defined in SAP, so it should be used in limited circumstances. In some cases, manual release may need to be approved prior to execution.

Node 4: Past Cancel[Note to RL: Please provide information on how Past Cancel may affect delivery.] Deliveries will not create on past cancel orders.

Node 5: Incomplete Order[Note to RL: Please provide information on how an incomplete order may affect delivery.] Incomplete orders will not go to a delivered status. The orders will continue

Learners must select each node to learn more about factors that impact delivery. Selecting a node will reveal in-depth information about each topic.

Nodes include: Allocation rules Release rules, Outbound delivery rules, A-Run Optimizer, Past Cancel, Incomplete Order, Shipping/Delivery, Billing or Credit Block, and Material Status in PKMSPkMS

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to allocate (reserve). There are incomplete statuses that will keep an order from allocating (i.e. missing plant).

Node 6: Shipping/Delivery, Billing, or Credit Block[Note to RL: Please provide information on how shipping, billing, or a credit block may affect delivery.] Orders with shipping/delivery or credit block will not deliver. They will continue to allocate (reserve); however these orders will not drop to delivery.

Node 7: Material Status in PKMSPkMS[Note to RL: Please provide information on how material status in PKMS may affect delivery.] If the material is not in PkMS or not allocatable, the order will not allocate to reserved or fixed status. If the order does not allocate to a fixed status, a delivery cannot be created.

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Explore

Order Statuses and AllocationOrders within the Allocation window move through a series of statuses in SAP as the inventory is allocated and released to pick in the WM system, PKMS. Orders are checked, grouped, and released based on delivery priority and release rules.

In general, Order statuses within the Allocation window include:

Node 1: Blocked (B)Blocked means that the sales document has not yet participated in allocation and that the document is not covered by future stock. Blocked and Temporary are virtually the same in the allocation process, but Blocked indicates that a material has been oversold.

Blocked status is not viewed in the Optimizer, but could be useful in other reports, such as a supply and demand

Learners must select each node to learn more about order statuses and allocation. Selecting a node will reveal in-depth information about each topic.

Nodes include: Blocked, Temporary, Reserved, Fixed, and Delivery

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analysis.

Node 2: Temporary (T)Temporary means that the sales document has not yet participated in allocation, but the document is covered by future stock.

Node 3: Reserved (R)Reserved means that the sales document has participated in allocation, but did not pass the release check. For example, the sales document might not meet or it might exceed the release percentage.

Sales contracts can only ever reach Reserved status.

Node 4: Fixed (F)Fixed means the sales order has participated in allocation and passed the release check.

Node 5: Delivery (D)Delivery means that a delivery exists for the order. Deliveries are sent to the WM system, where corresponding pick tickets are created.

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Multiple Choice

Knowledge CheckThis screen will feature a multiple-choice question that tests and reinforces learners’ understanding of sales order allocation.


Module D: Primary vs. Secondary Order Reasons


ea010 Primary vs. Secondary Order Reasons Learners must select each node to learn more about primary

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Explore

Order types and order reasons drive order fulfillment processes and reporting. Line, Material, and Order Reason fields, when populated, determine the kind of order and how an order will be processed and/or reported on.

Examples include:

Line: Embroidery

Material: Pre-packs

Order Reason: BSR

Two types of order reasons can be used: Primary and Secondary.

Node 1: Primary Order ReasonPrimary Order reasons may effect customer allocation priority, release rules, and DC turn time.

Node 2: Secondary Order ReasonSecondary Order reasons are for reporting and analysis within the Golf Sales area, but could be used for any Sales area.

and secondary order reasons. Selecting a node will reveal in-depth information about each topic.

Nodes include: Primary Order and Secondary Order

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Explore

Primary Order Reasons[Note to RL: Please provide more information about these order reasons. What do learners need to know about each of these?] Order reasons are used to flag an order as a special order. The order reasons are used to show a new store opening or special event. Golf is the main division using these reason orders to track orders. Order reasons can also be used in reporting.

Standard primary order reasons used in a sales order

Learners must select each node to learn more about primary order reasons. Selecting a node will reveal in-depth information about each topic.

Nodes include: BSR, AD/Catalog, Rush Order, New Store Opening, Special Store Event, and VIP Personal Order.

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include:

BSR (ZBR)

AD/Catalog (ZAC)

Rush Order (ZRU)

New Store Opening (ZNS)

Special Store Event (ZSE)

VIP Personal Order (ZVP)

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Primary Order Reasons (Golf)Golf orders also have primary order reasons that are specific to Golf and VRLink. These reasons include:

Prebook (p*****)

In Season (I)

Tournament (T)

Hot = 5 Days < DC Turn Time (H)

Prebook Tournament (PT)

Hot Prebook (HP)

Hot In Season (HI)

Hot Tournament (HT)

Hot Prebook Tournament (HPT)

Prebook Golf Drop (PE)

In Season Golf Drop (IE)

Tournament Golf Drop (TE)

Prebook Tournament Golf Drop (PTE)

Primary order reasons (Golf) graphic and text; may include grid-style graphic that reflects order reasons

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Prebook Tournament Multi Drop (PTF)

Tournament Multi Drop (TF)

Hot Prebook Drop (HPE)

Hot Prebook Multi Drop (HPF)

Hot Tournament Multi Drop (HTF)

Hot Tournament Drop (HF)

* The primary order reasons in italics are not available in VRLink.

[Note to RL: NL will be sure to highlight these reasons in the accompanying graphic and note (in OST and audio) that they are not available in VRLink.]

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Secondary Order Reasons[Note to RL: Please provide more information about these order reasons. What do learners need to know about each of these?] Golf analysts will use these order reasons to mark special orders for golf tournaments, AJGA, USGA, USTA, etc… Order reasons can be tracked with reporting.

Secondary order reasons used in a sales order for the Golf division include:

Staff Uniform Program

Golf Drop Ship (DS)

Golf Tournament Drop (Multiple Address)

Pink Pony

Premier Classics

Secondary order reasons graphic and text; may include grid-style graphic that reflects order reasons

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Knit Program

Member Guest (T1)

Charity (T2)

Pro Am (T3)

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Graphical Explore

VRLinkVRLink is a remote entry tool used to place orders. For Specialty and Golf. The application is interfaced with SAP, and enables users to generate orders, look up product availability, keep track of customers, and produce a wide variety of reports.

Users can select Order Types and Order Reasons using VRLink.

Key VRLink fields that map into SAP to build customer orders include:

Sales Organization

Order Type

Order Reasons

Drop Ship – Address Change

Go to Size Run

Embroidery Information

[Note to RL: Are there any other key VRLink fields you would like to include?]

Node 1: Sales Organization Sales Org 1000 = US

Sales Org 1017 = Canadian customer shipping out of Canadian DC

VRLink screen graphic and text

Learners must select highlighted nodes on the screen to reveal information.

Nodes include: Sales Organization, Order Type, Order Reasons, Drop Ship, and Go to Size Run

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Node 2: Order TypeOrder Type allows a drop-down for limited discounts.

Node 3: Order ReasonsOrder Reasons auto-defaults to Specialty for a Regular Order.

Node 4: Drop ShipDrop Ship allows the user to change the shipping address for an order.

Node 5: Go to Size Run[Note to RL: Please provide more information about Go to Size Run.]

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Multiple Choice

Knowledge CheckThis screen will feature a multiple-choice question that tests and reinforces learners’ understanding of the types of sales order reasons.


Module B.B Subset: Relationship Between Sales Contract and Sales Order (move this into the end of “Sales Order Creation and Maintenance” module


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Sales Contracts and Sales OrdersNode 1: Sales ContractsSales contracts are un-shippable orders that reflect account assortment plans and are valid only for a specific period.

Node 2: Sales Orders

Learners must select each node to learn more about sales contracts and sales orders. Selecting a node will reveal in-depth information about each topic.

Nodes include: Sales Contracts and Sales Orders

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Sales orders are shippable orders that exist at the size level by customer door. When a sales contract exists, sales orders “call off” or reduce the sales contract, where applicable.

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Sales ContractsSales contracts exist at the following levels:

Customer, material, and size

Customer, material, size, and door

Material and size

Graphic 1: AdvantagesSales contracts provide visibility in SAP for ownership, analysis, and financial planning. It also provides an accurate account of on-hand and future inventory in host and remote order entry tools, such as VRLink. Sales contracts also protect Ralph Lauren from the loss of materials during the allocation process.

Graphic 2: CharacteristicsContracts in SAP are downloaded at the customer, material, and size level (no doors). As customer sales orders are received from EDI, VRLink, Winshuttle upload, or manual entry, sales contract quantities will be reduced.

In the event the sales order includes material not included on the contract, the order will still build in SAP and will be filled based on availability. The ECC EDI ZOTC_COM report reflects discrepancies between the contract and the Customer PO/Confirmation issued.

Graphic 3: Mandatory FieldsSales contracts contain the following mandatory fields:

Sales contract graphics and text

Learners must use an arrow to toggle between multiple graphics. Each graphic will represent a sales contract topic, and will have its own on-screen text and audio.

Montage graphics include: Advantages, Characteristics, and Mandatory Fields

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Sold-to and Sales Area

Merchandise Organization and Merchandise Division

Season, Collection, and Theme

Validity period, including valid-from and valid-to dates

Requested delivery date, representing the start-ship date of a Season, Collection, or Theme

Materials with quantities at the size level

Door numbers if the contract is created for an EDI 855 customer

Your Reference field for Dillard’s regional attributes

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Multiple Choice

Knowledge CheckThis screen will feature a multiple-choice question that tests and reinforces learners’ understanding of sales contracts.


Module G Module H: New Customer Setup Process Move this module to the end. It should be the last module.


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New Customer AccountsThe Customer Master Team (CMT) manages customer account records, which means they are responsible for:

New customer setup

Changing and editing customer account records

New customer account graphic and text; may include Ralph Lauren stylized graphic

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Blocking and unblocking customer accounts

A customer must be set up in SAP Customer Master Data before any sales orders for that customer are entered into SAP.

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Montage

New Customer Setup FormsThe creation of a new customer begins when the Account Executive identifies the requirement for a new customer. The Account Executive must submit the New Customer Form and supporting documentation to the Sales Management Team for approval.

Requests without approvals or with missing information will not be processed. The requestor will be informed by email of any account creation delay and will be asked to provide missing approval or omitted information.

To request a new account setup, the following forms must be completed:

Customer Account Profile (CAP) form

[Note to RL: Please provide a brief description of the CAP form and its role in the new customer setup process. Are there any key fields you would like to highlight?] CAP form is a new form used by Customer Master Data Team and Sales to set up new customer accounts. Account Executives have the account fill out this form with shipping and credit information. Once completed, the form is forwarded to their contacts in Greensboro (GSO) and to credit for a decision on the new account. Once credit approves, the GSO contact will set up the new account using the details provided on the form.

Credit Application

[Note to RL: Please provide a brief description of the

New customer setup form graphics and text

Learners must use an arrow to toggle between multiple graphics. Each graphic will represent a new customer setup form, and will have its own on-screen text and audio.

Montage graphics include the bulleted forms listed to the left.

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credit application and its role in the new customer setup process. Are there any key fields you would like to highlight?] Credit applications / CAP forms are used for credit to vewi the account’s financial information prior to setting up the new account. Once the credit is checked and approved, the new account is set up by the Customer Master Data Team.

GXS Contact Sign Up Form

[Note to RL: Please provide a brief description of the GXS Contact Sign Up form and its role in the new customer setup process. Are there any key fields you would like to highlight?] Accounts are set up to use GXS, if applicable. Smaller accounts may not have access to web to receive email / invoices.

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New Customer Account ProcessThe process steps for creating a new customer are as follows:

Account Executive determines need

Account Executive completes and submits request

Sales Management reviews and approves

Account Executive notifies Customer Master Team and Customer Compliance Team

Customer Master Team confirms and begins activation process

Credit Management completes risk assessment and provides credit approval (Account Executive will receive email notification after credit approval)

Learners must select each node to learn more about the new customer account process. Selecting a node will reveal in-depth information about each topic.


Nodes include the bulleted steps listed to the left.

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Supply chain and EDI preparation

System entry and SAP Table updates

Customer is activated and orders can begin (Account Executive will receive email notification upon customer activation)

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Drag and Drop

Knowledge CheckThis screen will test and reinforce learners’ understanding of the new customer setup process by asking them to match the process steps for creating a new customer with the corresponding locations in the process workflow.

Learners must drag process steps to their corresponding locations in the workflow. Once learners have dragged all of the steps, they must press a Submit button. If incorrect, learners will receive feedback and must try again. They cannot advance to the next screen until they have correctly placed all nine steps.

Module H: Module E: Pricing Basics (Move this module to go after the “Sales Order Creation and Maintenance” module.


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PricingPricing is used to describe the calculation of the sales price on the sales orders and sales contracts maintained in master data. This master data is stored in SAP in the form of condition records.

The system determines the pricing procedure according to information defined in the sales document type and the customer master record.

The pricing procedure defined the condition types and the sequence in which they appear in the sales order.

Each condition type can have an access sequence assigned to it. Each access specifies a particular

Pricing graphic and text; may include Ralph Lauren stylized graphic

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condition table, which provides the key with which the system searches for records. If the access is unsuccessful, the system moves on to the next access and finds a valid record.

The system determines the price according to information stored in the condition record. If a pricing scale exists, the system calculates the appropriate price.

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Explore

Pricing ProcedureA Pricing Procedure governs the execution of condition types in a desired sequence in order to arrive at the right value for the product during the creation of a sales document and invoice.

The steps in this process are:

Node 1: Step 1The pricing process is triggered when a sales contract or sales order is created or re-priced.

Node 2: Step 2The base price is retrieved from the Conditions Record table.

Node 3: Step 3Discounts or surcharges are deducted from, or added to, the base price.

Node 4: Step 4Outbound freight, if any, is captured for use on the invoice.

Node 5: Step 5Tax, if any, is added to the tax-relevant subtotal.

Learners must select each node to learn more about the pricing process. Selecting a node will reveal in-depth information about each topic.


Nodes include the bulleted steps listed to the left.

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Node 6: Step 6The final sales price is calculated and sent to the customer.

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Skill Drill

Sales Pricing ElementsSales Price is comprised of the base price, discounts and surcharges, freight, and tax. The following screens will provide detailed information on each element.

Base Price + Discounts/Surcharges + Freight + Tax = Sales Price

This screen will feature a formula- or equation-style graphic that reflects how sales price is comprised. Each element in the equation will serve as a clickable node, so that learners can explore in-depth information about how sales price is configured. Nodes will appear as presentation and explore screens.

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Explore

Base PriceThe base price is the first element of the sales price calculation determined by the SAP pricing procedure.

There are two types of base prices:

Node 1: Standard CostStandard cost is the cost to produce and transport a specific style from the vendor to Ralph Lauren. The Finance and Production teams determine the standard cost and use it for certain customer accounts. Standard cost is maintained within SAP in the Material Master.

Node 2: Wholesale PriceWholesale price is the base price used on all sales orders and contracts for non-intercompany related transactions third party wholesale customers. This is the price sent to the majority of Ralph Lauren wholesale customers. Wholesale is interfaced in to SAP from GFE+ and is maintained stored in pricing condition tables.

Learners must select each node to learn more about base price. Selecting a node will reveal in-depth information about each topic.

Nodes include: Standard Cost and Wholesale Price

ha030-2 Discounts/Surcharges Learners must select each node to learn more about discounts and surcharges. Selecting a node will reveal in-depth

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Explore There are five types of discounts (less) and one surcharge (more):

Node 1: Manual Discount at Header Level (ZOPI)This is a discount that can manually applied to the header level of the order by taking a value or percentage off the sales price of each style for situations such as a late shipment.

Node 2: Manual Discount at Line Level (ZOPI)This is a discount that can manually applied for a specific style on the sales order.

Node 3: Trade Customer Agreement Discount (ZTDC)This is a discount that can be applied by taking a percentage off the base price for certain customers when selling materials with specific characteristics. These are applied automatically. Trade discounts can be configured with the following characteristics that determine their application:

Customer and Material

Customer and Merchandise Division

Merchandise Division

Merchandise Organization and Customer Pricing Group

Node 4: Value Discount (ZVAL)This is a discount that can be applied by taking a $ value off the base price for certain customers and materials (typically footwear). This is applied automatically.

Node 5: Embroidery Waive Discount (ZEDC)This is a discount that can be applied at to the sales

information about each topic.

Nodes include: Manual Discount at Header Level, Manual Discount at Line Level, Trade Discount, Value Discount, Embroidery Waive Discount, and Embroidery Surcharge

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order when embroidery charges are waived at the item level.

Node 6: Embroidery Surcharge (ZEMB)Charges are applied when materials require embroidery. An embroidery surcharge is used when embroidery is added to materials.

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Presentation

FreightFreight refers to the outbound cost of shipping for materials that leave Ralph Lauren Distribution Centers. Freight will not be captured on the sales order, and will only be stored on the invoice as PKMS will send the freight cost to SAP on the invoice.

Regarding the frequency of freight movement, keep these notes in mind:

The majority of department store customers send their own freight carriers to pick up materials from an RL DC, and no freight cost is charged to the customer.

In a minority of instances, usually for Specialty and Golf customers, RL pre-pays freight costs, but then adds a freight line item to the customer invoice.

In some exception cases, RL chooses a carrier and pays the freight cost.

Freight graphic and text; may include Ralph Lauren stylized graphic

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Presentation

TaxTax requirements are for the Canadian business to be able to apply Provincial Tax (PST/QST), as well as Goods and Sales Tax (GST/HST) for items shipping to Canadian destinations.

Tax graphic and text; may include Ralph Lauren stylized graphic

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Vertex, a third party taxation tool, is used to calculate the sales tax for transactions.

Tax is not applied for personal sales.

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Montage

Base Prices and Validity DatesBase prices are interfaced with SSN, Collection, and/or Theme. They start as valid from the date created and are valid to 12/31/9999.

Graphic 1: Scenario 1A wholesale price of $100 includes a valid from of 10/25/2014.

Result:

Any order with a start date after this date will pickup $100. However, if the order has a start date prior to 10/25, it will not pickup the wholesale price and the order will be incomplete.

Resolution:

Maintain the pricing date on the order to 10/25 or greater and update the pricing on the order.

Graphic 2: Scenario 2Sometimes GFE will set up an entry for a price/date and then revise to an earlier date and/or price. For example, $100 on 10/25/2014 becomes $110 on 9/25/2014.

Result:

The first record is received and activated. When the second record is received, it creates a new condition and invalidates the first one, since it would fall within the 9/25/2014 to 12/31/9999 date span of the new record. Therefore, the current price in the system would be $110

Base price and validity dates graphics and text

Learners must use an arrow to toggle between multiple graphics. Each graphic will represent a base price and validity date scenario, and will have its own on-screen text and audio.

Montage graphics include: Scenario 1, Scenario 2, and Scenario 3

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as of 9/25/2014.

Graphic 3: Scenario 3Sometimes GFE will reverse the above scenario and move a revision to a subsequent date. For example, $100 on 9/25/2014 becomes $110 on 10/25/2014.

Result:

Two potentially contradictory records will exist in SAP—one for $100 from 9/25/2014 to 10/24/2014 and then a new record for $110 beginning on 10/25/2014, assuming this later price is the final desired price.

Resolution:

If the orders are after 10/25/2014, then there is no issue. If orders have a start date before 10/25/2014, they will price at $100. Update the pricing date to a later date and update the pricing on the order to repair this.

This may seem like an error, but it is also what allows carryover pricing to be updated for later validity periods.

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Multiple Choice

Knowledge CheckThis screen will feature a multiple-choice question that tests and reinforces learners’ understanding of pricing basics.


Module I Module G: Customer Invoicing and Billing


ia010 Types of Invoices Learners must select each node to learn more about the types of invoices. Selecting a node will reveal in-depth information about

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Explore Ralph Lauren utilizes six types of invoices in SAP with different methods of delivery.

Node 1: Customer Invoice/Final InvoiceThe customer invoice is generated for each shipment. A final invoice or billing document indicates the amount the customer must pay to Ralph Lauren as per mutually agreed upon payment terms.

Node 2: Proforma InvoiceA proforma invoice is a document used to confirm or acknowledge a customer’s order. It can be created at various stages of the order process and reflects confirmation of the complete customer purchase order (PO), allocated portion only, and/or warehouse processing (pick ticket) portions only.

Customers generally require this document to apply for their import license, to tender pre-paid funds, or to serve as an acknowledgement of their customer PO. This invoice can be used by domestic and non-domestic customers.

Node 3: Commercial InvoiceA commercial invoice is a document used for customs authorization. It reflects the customer’s net unit price, terms of sale, payment terms, Harmonized Tariff Schedule (HTS) codes, and other details pertaining to the legal transfer of goods across international borders.

Node 4: Freight InvoiceA freight invoice is used when a customer is responsible for freight charges on a shipment and would like them to be on a separate invoice, or when Ralph Lauren and the customer agree to split freight charges.

each topic.

Nodes include: Customer Invoice/Final Invoice, Proforma Invoice, Commercial Invoice, Freight Invoice, Credit Memo Invoice, and Debit Memo Invoice

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Node 5: Credit Memo InvoiceA credit memo invoice is generated to show the decrease in Ralph Lauren receivables. This invoice is used to credit customers for any order discrepancies.

Node 6: Debit Memo InvoiceA debit memo invoice is generated to debit customers. This invoice indicates an increase in Ralph Lauren receivables.

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Methods for Sending InvoicesThere are three methods for sending invoices, including:

Electronic Data Interchange (EDI) Invoice (EDI 810)

GXS WEB Invoice

PDF/E-mail or Hard Copy

Node 1: Electronic Data Interchange (EDI810)An EDI invoice is electronically sent to customers. The EDI invoice is used for department stores and off-price customers.

Node 2: GXS WEB InvoiceA GXS WEB invoice includes the final billing invoice and the ASN. It is sent to non-EDI customers via the web.

Node 3: PDF/E-mail or Hard CopyWhen invoices need to be sent to customers who do not receive EDI or do not participate in GXS WEB, a proforma invoice is sent in PDF form via e-mail, or placed in the carton prior to shipping.

Learners must select each node to learn more about the methods for sending invoices. Selecting a node will reveal in-depth information about each topic.

Nodes include: Electronic Data Interchange Invoice, GXS WEB Invoice, and PDF/E-mail or Hard Copy

ia030 Types of Invoice Processing Invoice processing workflow graphics and text

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Montage

All invoices are created automatically with some exceptions, in which case invoices are created manually.

SAP consolidates and splits invoices based on customer requirements and specific conditions. During consolidated billing or invoicing, SAP groups as many orders or deliveries as possible into each invoice. Each invoice can contain items from different deliveries or orders. SAP standard criteria and RL-specific criteria are used to consolidate these invoices. The invoice grouping criteria is maintained in the Customer Master.

Graphic 1: Individual Invoice ProcessingIndividual invoice processing describes the steps involved in creating and posting a single invoice for a sales order.

Graphic 2: Consolidated Invoices for Multiple DeliveriesThe system simultaneously processes numerous billing documents, each of which can contain items from multiple deliveries.

Graphic 3: Consolidated Invoices for Multiple Sales OrdersThe system creates a consolidate invoice for multiple sales orders addressed to the same Payer and PO.

Graphic 4: Invoice SplitInvoices can be split for different reasons:

Freight: Based on a customer request, the customer is set up to receive a freight invoice in the Customer Master with the following indicators: “Freight Allowed” and “Separate Freight Invoice.”

Learners must use an arrow to toggle between multiple graphics. Each graphic will represent a type of invoice processing, and will have its own on-screen text and audio.

Montage graphics include: Individual Processing, Consolidated Invoices for Multiple Deliveries, Consolidated Invoices for Multiple Sales Orders, and Invoice Split.

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CITIES: For international customers, invoices can be split for CITIES items. The indicator in the Material Master is “CITIES—Y/N.”

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Exceptions: Manual Creation of InvoiceIn some cases, invoices must be created manually. Typically for Port of Entry.

Node 1: Proforma InvoiceManual creation is required for copy of order for domestic and non-domestic customers. This is required only when proforma is required on the document. Account Services creates this invoice.

Node 2: Commercial InvoiceManual creation is required for samples sales using the House Account to ship overseas. The pick/pack from GSO and the commercial invoice are printed manually. Account Services creates this invoice.

Node 3: Freight InvoiceManual creation is required when RL determines that the customer should have been charged freight and was not. The freight invoice will be generated manually subsequent to the ship and bill. Transportation creates this invoice.

Learners must select each node to learn more about the manual creation of invoices. Selecting a node will reveal in-depth information about each topic.

Nodes include: Proforma Invoice, Commercial Invoice, and Freight Invoice

Module J: Assessment


ja010 AssessmentOnce learners complete all of the modules in this course,

Assessment graphics and text

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Assessment they must take a final assessment. This assessment will consist of a series of multiple-choice questions to test comprehension. Content will be pulled from all previous modules. Learners are required to pass the assessment with a score of 80% or higher to receive credit for completing the course. Learners will have an unlimited number of opportunities to pass the assessment.

Module K: Summary


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Presentation

SummaryAfter completing the course, learners will review a brief conclusion that reviews the course’s objectives and summarizes key points.

Summary graphics and text

Appendix: Glossary o Accounts Receivable – refers to all sales transactions that generate an invoice, net of any credits as a result of returns, credit

memos or cash on account.

o Advanced Shipment Notice (ASN) – an electronic version of a packing list. It provides visibility to what the supplier has shipped.

o Allocation – the process by which Ralph Lauren allocates available stock within the warehouse management system to sales contracts and sales orders, based on business- and/or customer-specific rules and priorities.

o Allocation Date Window – date range defined in the selection set to determine when orders begin to allocate. Range is editable based on business needs. Only sales documents with requested deliver dates within the range participate in the nightly batch allocation.

o A-RUN (Allocation Run) – an automatic allocation tool in SAP.

o A-RUN Optimizer – a tool used to manage allocations exceptions, de-allocation, release to pick and order status changes.

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o Available to Promise (ATP) – refers to available inventory that can be delivered to customers at once (on hand) or in the future from vendor purchase orders that have not yet been received.

o Base price – refers to the amount of money normally paid for goods or services.

o Chargebacks – chargebacks represent the fees that a customer deducts from the payment of a Ralph Lauren customer invoice, when a customer believes Ralph Lauren has not met or complied with the customer’s requirements.

o Commercial invoice – a document used for custom’s authorization. It reflects customer’s net unit price, terms of sale, payment terms, harmonized tariff schedule (HTS) codes and other details pertaining to the legal transfer of goods across international borders.

o Consolidated invoice – a collective invoice containing items from multiple deliveries addressed to the same payer.

o Credit memo – a billing document that is created on the basis of either a discrepancy in the order or returns. Credit memos reduce receivables in financial accounting.

o De-Allocate – removing allocated inventory from a contract or sales order. De-allocation is used to reverse undesired allocation results.

o Debit memo invoice – is generated to debit customers. This invoice indicates an increase in Ralph Lauren receivables.

o Discount – refers to contractual or rate regulation concerning a reduction in the amount charged to a customer.

o Domestic Drop Ship (DDS) –

In the DDS process, customer orders are fulfilled from the vendor to a RL managed 3PL or can be “staged” at the DC or 3PL; however, it is not processed in WMS. Shipments are handed over fully intact to the customer (ASNs and cartons are not broken).

RL owns the cargo from port of origin until the customer receives/pick ups the order in the destination country. Ralph Lauren is responsible for transportation costs from vendor to US.

In DDS scenario sales orders are linked to the vendor PO and consumed by it.

o Doors – a customer’s final destination where product will ship. Door number and name are indicated on shipping cartons. The term “doors” is used by buyers of department stores or accounts with multiple locations.

o Electronic data interchange (EDI) – EDI is a process by which customers transmit orders to Ralph Lauren via SAP electronically or vice versa.

o Freight - refers to the charges for transporting goods.

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o Freight invoice – is used when a customer is responsible for freight charges on a shipment and would like them to be on a separate invoice or when Ralph Lauren and the customer agree to split freight charges.

o Future receipts – refers to vendor POs not yet received.

o Global Drop Ship (GDS)

There are two types of GDS processes – GDS with RL ownership and GDS without RL ownership.

GDS is a variant of the Drop ship process in which the vendor hands goods directly to an international customer’s forwarder i.e. GDS without ownership OR,

Handover to the Customer is managed by an RL 3PL and so this process is called GDS with ownership.

In GDS scenarios customer orders are linked to vendor POs, and the order consumes the vendor PO.

o Global Drop Ship (GDS) with RL Ownership

Handover to Customer is managed by an RL 3PL and so it is called GDS with RL ownership.

Example – Snatt picks up the goods from the Vendors in Italy.

In this case the Vendor PO terms will determine ownership or no ownership once the invoice from the factory is received/posted.

o Global Drop Ship (GDS) without RL ownership

Vendor hands goods directly to an international customer’s forwarder and so its called GDS without RL ownership

Customers for this model typically are off shore international accounts.

o Item Category - Item categories in SAP drive each sales order process and are editable at the header and line level detail of the sales order. There are three item categories that will be applied to RL sales orders. The item category will be automatically entered on the sales order based on information in the custom table.

ZTAN Item Category

Supports the Standard Pick/Pack process managed out of an RL-managed WMS and the PTC Drop Ship processes.

ZTAS Item Category

Supports the Drop Ship process

ZTAB Item Category

Supports the Direct Ship process

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o MSRP – Manufacturer’s suggested retail price

o Net sales price = base price + discounts (less) or surcharges (more) + freight + tax

o Outbound delivery (pick ticket) – business process in order to support all shipping activities like picking, packing, transport and goods issues. All information regarding shipping planning is stored in outbound delivery, the status of shipping activities is monitored and data gathered during the course of shipping processing is recorded. By creating outbound delivery, shipping activities are started and data is transferred that is generated during shipping processing.

o Pick Ticket Management System (PKMS) – the warehouse management system used by Ralph Lauren in the U.S.

o Plant – is an organizational unit serving to subdivide an enterprise according to production, procurement, maintenance and materials planning aspects. It is a place where either materials are produced or goods and services provided.

o Port of Entry (POE)

POE is a variant of the Domestic Drop ship in which full containers of goods are turned over to the Customer at the Port of Entry or other agreed upon handover location.

In this scenario the sales order is linked to the vendor PO and is consumed by it.

o Proforma invoice – a document used to confirm or acknowledge a customer’s order. It can be created at various stages of the order process and reflects confirmation of complete customer purchase order, allocated portion only, and/or warehouse processing (pick ticket) portions only. Customer generally requires this document to apply for their import license, tender pre-paid funds or to serve as an acknowledgement of their customer PO.

o Purchase to Contract (PTC) – a SAP functionality that supports Ralph Lauren Canada Drop Ship process. It also supports the pre-pack stock requirement contracts for the Kohl’s Ecom /Flow units

o Purchase to Stock (PTS) – a SAP functionality that supports the standard pick pack process

o Release rules – customer orders are eligible for pick ticket creation based on a set of release rules. Release rules may be created at the merchandise organization, brand or merchandise division level and are based on the percentage of product allocated against the customer PO. This is housed in a custom table. When percentages are met, the order may automatically release to PKMS for pick ticket.

o Sales contract –is an agreement between Ralph Lauren and an account. The agreement contains special conditions negotiated with the account to supply goods at agreed prices. The contract could also serve as a projection at either the customer or the projection division level. A contract is the reserved booking that needs final customer confirmation and draw down.

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o Sales order – is a customer request to Ralph Lauren for delivery of goods or services within a specific shipping window, generally considered the final customer order or in a confirmed state. The sales orders are shippable orders that exist at the size level by customer door. When a sales contract exists, sales orders “call of” or reduce the sales contact, where applicable.

o Standard pick pack - Orders fulfilled through RL DC/3PL specifically RL managed WMS.

o Surcharge – refers to the amount established in the contract or rate that is included in the customer’s bill amount.

o Tax – any federal, state or local sales, VAT, GST, foreign withholding use, property, excise, service or similar taxes now or hereafter levied, all of which shall be for Licensees account.

o Third Party Logistics (3PL) - A 3PL is a company or firm that provides service to its customers for outsourced (or "third party") logistics services for part, or all of their supply chain management functions.

o Third Party Order (TPO) – a SAP functionality that supports DDS, POE Drop Ship and GDS with and without RL ownership processes.

o Vertex – third party software system filly integrated with SAP to automate tax calculation procedures.

o Wholesale price – the price that will apply to the majority of the customers when buying through the wholesale channel from Ralph Lauren.

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rl_sales order overview_do - 7-22-2014 (2)

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