Sales Order processed in SAP

Pre Sale Sale Quotation

Sale Order
Activities Entry

Delivery Note
Check Stock
Pack Material & Pick
Availability
Materials

Receipt of
Post Good Invoice
Customer
Issue Customer
Payment

Unique Steps That Ensure Accurate Processing of the Order

 Pre-sales activities
 Sales order processing
 Inventory sourcing
 Delivery
 Billing
 Payment
Pre-sale Activities:
This step is the basic procedure of the sale order process as it includes inquiry or price quotation
through this customer can get info regarding the company products, this step also includes some
marketing activities like generating the mailing list of the customer, maintaining their data, sale
calls, and visits.
Sales order processing:
Sale order processing includes the step to record the sale. The order process start form the
activities of pre-sale (quotation) and the info collect from the customer. After that there are three
main steps that’s in the order process;
 Recording of the purchased items
  Determining their selling price
 Recording the quantity of order
Other then that in SAP ERP system customer have different alternative option available for
pricing. It also checks the customer available credit from the A/C Rec and if the customer has
necessary available credit order process is completed, if not SAP ERP system prompts sales
personnel to take appropriate possible actions.
Inventory sourcing
After the order is placed, SAP ERP system check the availability of requested material, like
whether it available in the company stock or in the manufacturing process and is the order can be
delivered on the customer desire date. It also keeps you update on the expected shipping time. If
the system sees there is an expected shortfall of the material it recommends the Production
Planning Module to increase the planned production.
Delivery
SAP ERP system prepare the necessary document for the warehouse to pick, pack and ship, that
increases the efficiency of order then later transfer the document to Material Management
Module for the inventory update process.
Billing
SAP ERP system created an invoice using the sale order data like order quantity, price, customer
info and generate invoice document that can be mail, fax, or transmit electronically to the
customer for the billing purpose.
Payment
When the payment is proceeded by the customer, SAP ERP system automatically process the
transaction. FICO module automatically debit the cash and reduces the customer account ensures
the timeliness and accuracy of any subsequent credit checks for the customer

Business Process Re-engineering

BPR is one of the process organization uses for improving a business process. Organization uses
the Business Process Re-engineering to take advantage of the new business concept and
modifying their existing business process. BPR analyzes the current situation, fully understand
the goals of the process, comes up with alternative, redesign the process, monitor the process,
and then implement the redesign plan.
Steps Involved in BPR
 Develop Vision and Objectives
 Understanding Existing Process
  Identify Process of Re-design
 Identify Changes
 Implementing New Process
 Make New Process Operational
 Evaluate The New Process
 Ongoing Continuous Improvement
Both BPR and BPM undergo several steps for better productivity of the processes but their core
functionality varies massively. We can say that BPR is a distinguished part or a follow up on
BPM. However, the BPR strategy aims at the efficiency and productivity of a particular
process/step in the workflow. At the same time, BPM is a long-term strategy that concerns the
entire workflow management. Business Process Re-engineering (BPR) and Business Process
Management (BPM) should be in no way called similar or viewed as alternatives to one another.

Supply Chain
Supply chain is a network that start with the raw material and finished on the distribution to the
final buyers. It is a network of chain that start with the supplier and then goes through the
logistics, warehouses, manufacturer, distributors and finalize on the customer.
Supply Chain Management
Supply chain management is the process to organize the entire Supply chain that start with raw
material and ends on finished goods. It is a process to efficiently manage the flow of goods and
services using the best technologies reducing the cost to minimum at every stage of chain and
gaining a competitive advantage in the business.
Steps Of Production Planning in SAP
Fist need to design a production plan using the current inventory levels and sale forecast. By
knowing the Sales and Current Inventory, helps in designing the detail production plan.
For detailed production plan, it has to break down the production plan o weekly and daily basis.
By know the level of production required through the production plan we can determine the
required raw material.
 Planning Independent Requirements
 MPS / MPR Running
 Production Planning
 Received Raw Material
 Production Confirmation
 Production order closed and settled