Sey (©2017 SAP SE Align rasredZIT onaer-to-casn Processing in SAP ERP About This Topic This lesson introduces the order-to-cash business process. Business Example ‘As a member of the order-to-cash team, you will participate in multiple discussions regarding this process. For this reason, you require the following knowledge’ = An understanding of the order-to-cash business process and how it integrates with other applications within SAP ERP Estimated time to complete this topic: 15 Minutes Objective(s) 1= Describe the steps in the order-to-cash business process (©2017 84° SE Align resrvos2 Transportation processing delivery i Goods issue Availability ‘ ‘check Order-to-cash a ‘ Outbound (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Summary You should now be able to: = Describe the steps in the order-to-cash business process (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP eee About This Topic This lesson introduces the organizational levels used for the order-to-cash business process. Business Example To use the order-to-cash business process in SAP ERP, you need to define organizational levels for Sales and Distribution. For this reason, you require the following knowledge: 1 An understanding of the organizational levels for the order-to-cash business process Estimated time to complete this topic: 40 Minutes Objective(s) «= List the organizational levels required for the order-to-cash business process. '= Explain the relationships between the organizational levels used for the order-to-cash business process (©2017 84° SE Align resrvosOrganizational Levels That Support the Order-to-Cash Process © Company code © Sales area > Sales organization > Distribution channel > Division @ Plant ® Storage location © Shipping point Sarl] (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP on canvaon. | @ Organizational Level - Sale... ‘The sales organization Is an organizational level in logistics. ‘The sales organization groups the enterprise according to its sales and distribution requirements, Each sales organization has a unique company code, but more than one sales organization can Sales organization be assigned to a company code. It you use order to cash, you need at least one sales organization Responsible for: You need to maintain your own © distributing goods and services tnastet “coini for, sales organization. In the sales © negotiating sal ndition: statistics, the sales organization is side eal the highest summation level. All © product liability and rights of recourse deme) 2, Gocienant Fea? during the order-to-cash business process (all tems of an order, an (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP on canvaon. | @ Organizational Level - Sale... enterprise accorcing to ts sales and distribution requirements, Zach sales organization has 2 unique company code, but more than one sales organization can be assigned to a company code. If you use order to cash, you need at least one sales organization. Sales organization You need to maintain your ov master data. fora sales erganization, Inthe sales Responsible for: Statistics, the sales organization s Sibel : the highest summation level All © distributing goods and services items “in @ document rested oe : Gutng the orderto-cash business © negotiating sales conditions process (all tems of an order, an © product liability and rights of recourse Gooanent) bebrg to a eae organization (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Organizational Level - Distr. A distribution channel performs the following tasks: 1 Defines responsibilities 1 Achieves flexible pricing 1 Differentiates sales statistics Sales organization oes it it Distribution channel 1 Distribution channel 2 (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP on canvaon. | @ Organizational Level - Divis... The system uses a division to determine the sales areas assigned to @ material or a senice, For example, a division can represent 2 product _ group. Sales organization Therefore, you can restrict price agreements with a customer to a certain division. You can also conduct statistical analysis by division, Division 1 Division 2 Represents a product line (©2017 84° SE Align resrvosOrganizational Level - Sales Area Sales organization Distribution (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP pet Organizational Levels - Pla... In SD, the plant has the following central functions: 1 Atleast one plant has to be created to be able to use the SD module. = Aplant must be uniquely (Delivering) plant assigned to a company code. = The assignment between sales organizations/distribution channels and plants does not have to be unique, = Aplant is essential for determining the shipping point. (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Organizational Level Shipping Point Shipping point 1 (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Organizational Level Shipping Point Shipping point 1 (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Organizational Levels - Relationships (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Summary You should now be able to: 1 List the organizational levels required for the order-to-cash business process ‘= Explain the relationships between the organizational levels used for the order-to-cash business process (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP ee About This Topic This lesson introduces the customer master record and its functions. Business Example To use the order-to-cash business process in SAP ERP, you need fo maintain customer specific master records. For this reason, you require the following knowledge: = How to create a customer master record '= An understanding of the purpose of a customer information record Estimated time to complete this topic: 40 Minutes Objective(s) = Create a customer master record 1» Explain the purpose of a customer-material info record (©2017 84° SE Align resrvosCustomer Master Records Control Tables Vv Order > Sold-To Party 2300 Ship-To Party 788 Be Item Material Quantity Pw vanier 1 20 1400-200 20 30 1400-410 15 (©2017 84° SE Align resrvosStructure of Customer Master (©2017 84° SE Align resrvos ‘Sales area data Relevant for sales Valid for: ‘Sales organization Distribution channel Division General data Relevant for sales and accounting Valid for all organizational units: Company code data Relevant for accounting Valid for: company codeBI ovaer-tocasn Processing in SAP ERP Partner Functions for the C... The following table lists the purposes of mandatory partner functions: ae al Function | Purpose a ~~ Soo Partner J Shipto Receives goods or pary | services e pany [tor gooes or services agent Payer [Pays the invore Other partner functions, sueh as Contact persons gent, ae not necessary fr sales btder processing pany” [Places the order a functions Bil-to_ Receives the invoice Forwarding contact persons or forwarding (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Customer Material Info Record Customer-material information Customer Sales organization Distribution channel Material Description Customer-specific dat Material description 1400-100 Scheinwerfer Deluxe $3000 Front light 1400-200 Taillight 1700 Back light * @dditional data (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Summary You should now be able to: = Create a customer master record ‘= Explain the purpose of a customer-material info record (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP oa About This Topic This lesson describes the material master record used in the order-to-cash business process. Business Example You need to manage material master records for use In the order-to-cash business process In SAP ERP. For this, reason, you require the following knowledge’ = An understanding of the material master record Estimated time to complete this topic: 25 Minutes Objective(s) ‘= Explain the material master views relevant to the order-to-cash business process (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Material Master Basic data 1 Rolevant for all areas = Valid forall = organizational units —— Purchasing Relevant for materials, ‘management ‘Valid for: plant Further. Relevant for construction, requirements planning, ‘accounting, and so on’ (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP oa me Summary You should now be able to: = Explain the material master views relevant to the order-to-cash business process (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP ee About This Topic This lesson describes the use of conditions in the order-to-cash business process, Business Example You need to provide special pricing or discounts to customers. For this reason, you require the following knowledge: = How to create condition master records Estimated time to complete this topic: 25 Minutes Objective(s) = Create a customer material condition record (©2017 84° SE Align resrvosConditions (©2017 SAP SE Align rasred Prices Materia price Guster spect er apeciic Other Freight Freight incoterms 1 +2 Other omer Male ‘Surcharges/discounts Forthe customer Forte mara orth price group For the material group For the customerimaterial For the customerimat! group For the price group/mat! group GthersBI ovaer-tocasn Processing in SAP ERP Summary You should now be able to: = Create a customer material condition record (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP ee About This Topic This lesson describes how to create a sales order Business Example The first step In the order-to-cash business process could be to perform presales activities. After successfully establishing a relationship, with your customers, the next step is sales order management. Since you are part of the order-to-cash team, you require the following knowledge: = An understanding of presales activities = An understanding of a sales order and its structure = An understanding of the incompletion log = An understanding of document flow in the order-to-cash business process = An understanding of availabilty check Estimated time to complete this topic: 40 Minutes Objective(s) = Explain sales order processing = Create a sales order (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP (©2017 84° SE Align resrvos Sales Order Processing “AL An auclicipis played with this screen. To view the audio text, select Transcript Specific marketing activities, such as direct mailing campaigns, internet campaigns, trade fair sales activities, and telephone campaigns can trigger sales processes. ‘The possible results of a sales campaign could be a nonbinding customer inquiry or a request for a quotation. Inquiries and quotations contain important sales-related data and can be saved as documents. If the customer places an order later on, you can refer to this data, Use this presales Information to plan and evaluate your marketing and sales strategies as 2 basis for establishing long-term business. relationships with your customers. ‘Some of the instances In which you can use presales information are as follows: 1 To track lost sales, or customers 1 To help negotiate large contracts 1 To sell goods and services to large organizations that require documentation of the entire sales process(©2017 SAP SE. Alig sored. ny or ero Cray Daa Cr DeBI ovaer-tocasn Processing in SAP ERP Roles of the Sales Document bm Interface to SAP SCM. y Ses schedulin ry S See eres Petes ei) rr Pees) Cera (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Item 1 Schedule line 1 Schedule line 1 Schedule line 2 (©2017 84° SE Align resrvos ales Document Structure To process the sales documents ‘efficiently, display and process the data by using different views. The Views are grouped into overview, header, and item screens. You can enter anew sales document on an overview screen. The goal of shipment and transportation scheduling is to confirm a delivery date for the material a customer requested, For backward scheduling, the system uses. customer's equested delivery date to calculate the pick/pack time and the transportation lead time ‘The delivery must be created on the earlier of the two dates (election date for outbound dellverv\BI ovaer-tocasn Processing in SAP ERP Incompletion Log Sales order SSoldeto party 2300 Purchase order no. Terms of payment Item | Material | ty | Weight 10 | 1400-100 | 10 - 20 | 1400-200 | 10 | 12KG W: Please enter purchase order number Pon Pe Lear] De ud (©2017 84° SE Align resrvosDocument Flow in Order to Cash Pood ir Po) docum ° “dW Coe GuRIE Comer coment tremens B [nr mmocieneoea (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Availability Control The availability check can be based on: Receipts 1) Receipts and issues Issues 2) The forecast 3) Product allocations (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Summary You should now be able to: = Explain sales order processing = Create a sales order (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Re About This Topic This lesson shows how to perform delivery tasks for sales orders. Business Example After sales orders are created, the next step in the order-to-cash business process Is to create deliveries. For this, reason, you require the following knowledge’ = An understanding of shipping processing = An understanding of the picking and packing processes = How to post a goods Issue Estimated time to complete this tople: 1 Hour 25 Minutes Objective(s) = Create a delivery document ‘= Explain the picking and packing process = Post a goods issue (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Delivery Documents ‘The following list outlines the stages involved in the shipping process in SD. Shipping "= Shipping processing supports: ‘= Creating outbound deliveries «= Picking (by creating transfer orders) = Packing «= Posting the goods Issue Creating a delivery document includes copying information from the sales order, such as the materials and quantities, onto the delivery document. Creating a transfer order (TO) includes copying data from the delivery document to the TO for processing within the warehouse. The TO Is essential for controling the movement of goods within the warehouse. ‘There Is a source location and a destination location for every TO. ‘The posting of the goods Issue can bring about a change of stock based (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Delivery Documents = Creating outbound deliveries «= Picking (by creating transfer orders) = Packing «= Posting the goods issue Creating a delivery document includes copying information from the sales order, such as the materials and quantities, onto the delivery document. Creating a transfer order (TO) includes copying data from the delivery document to the TO for processing within the warehouse. The TO is essential for controling the movement of goods within the warehouse. ‘There is a source location and a destination location for every TO. ‘The posting of the goods issue can bring about a change of stock based on quantity as well as value (price of material). Changes based on quantity are made on the relevant balance sheet accounts and stock change accounts in Financial Accounting (Fl). “0. An aucio ip splayed wih ts sereen. To view the aud text, select Transcript (©2017 84° SE Align resrvosCreation of an Outbound Delivery (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Outbound Delivery Porro ees Pree eee Foro) Moca (©2017 84° SE Align resrvos Monitoring Cn Porat = ryBI ovaer-tocasn Processing in SAP ERP Picking and Packing Process rey ec Org | oe Scr) Ceitrsd Transfer order Outbound delivery. Cana Orr Cn sce ciel BS cx een data entry devices (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Picking in Shipping Processing Shipping point 10 1400-400 20 20 20 1400-200 12 12 Pick quantity 10 1400-100 201 20 1400-200 __ TO Picking list (©2017 84° SE Align resrvosWarehouse Mobile Devices (©2017 84° SE Align resrvos‘a ‘Accounti 4434 ‘foaument JJJ4 ‘M1 12$ = aa { =] Jon 12 s0002ee7| Jon 17 s0002763) (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP ee Quality Management Integration (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Summary You should now be able to: = Create a delivery document ‘= Explain the picking and packing process = Post a goods issue (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP tee About This Topic This lesson shows how to create customer invoices, Business Example In the order-to-cash business process, after the post goods Issue Is entered, the billing process can start In SAP ERP, Because you play a role in this process, you require the following knowledge: = An understanding of the billing process = How to create a billing document Estimated time to complete this topic: 45 Minutes Objective(s) = Create customer invoices (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP ing Process “A. An auto cipis played with this screen. To view the audio text, select Transcript Billing Processes 1 Creating invoices for goods and services 1 Creating credit and debit memos 1 Canceling previously posted billing documents 1 Automatically transferring billing document data to accounting When you create a billing document, data Is copied from the sales order and the delivery document to the billing document. Delivery items as well as order Items (for example, services) can be used as references for the billing document. (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Billing Document Creation SAP can combine _ several deliveries into a biling document, provided these deliveries share some essential —_ billing characteristics. terial The following are examples of ets billing characteristics shared by Ponti deliveries Payment = Payer = Billing date = Destination country SAP can create Invoices elther utp ta online or as @ background job to be executed during off-peak hours, hoy ‘Account Amount The billing document includes data at the following levels: (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Billing Document Creation The billing document includes data at the following levels: «= Billing document header ‘The data for the billing Material document header is valid for Quantity the entire document. The data rosin can be related to the payer and ea billing date. — =llid ® Billing document items Each billing document item in the sales document contains its own data, The data includes details of the material, biling ie quantities, and net values for the items. Each billing document can have several items. hoy ‘Account Amount (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP eee et (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP ating Siu ee worklist en posting arid (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Summary You should now be able to: = Create customer Invoices (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP About This Topic This lesson discusses how to apply @ customer payment against an open invoice Business Example To use order-to-cash functions in SAP ERP, you need to know about the customer payment process. For this reason, YoU require the following knowledge: '= How to enter the customer payment Estimated time to complete this topic: 35 Minutes Objective(s) «= Enter a customer payment (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP (©2017 SAP SE Align rasred Customer Payment ‘The payment process is part of the Fl application module. Payment supports the following tas! Posting payments against invoices Reconciling differences When you post an Incoming payment, the system automatically updates the relevant GL accounts,BI ovaer-tocasn Processing in SAP ERP or meat > Summary Summary You should now be able to: = Enter a customer payment (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP About This Topic This lesson introduces Profit Center Accounting (EC-PCA) Business Example ‘To work in an SAP system, you need to know about EC-PCA. For this reason, you require the following knowledge’ = How to display a profit center = An understanding of profit center assignments = An understanding of how profit centers are a part of integrated planning = An understanding of the flow of data to EC-PCA Estimated time to complete this topic: 35 Minutes Objective(s) = Use Profit Center Accounting (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Profit Center Accounting Organization = Organizational Unit (©2017 84° SE Align resrvos Z Profit Center Line of Business .@ LocationBI ovaer-tocasn Processing in SAP ERP tn ee Profit Center Accounting —... ‘The goal of PCA is to measure the profitability of areas of responsiblity within. the organization. A profit center is a management- oriented organizational level used for internal controlling purposes. (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Contribution of an organizational unit What isthe operating profit of @ proft center? Which fixed asset valve is assigned to a proft cantor? Which areas of responsibilty ‘exceeded thelr plan during the last month? Which goods and services were provided or sold in the enterprise? (©2017 84° SE Align resrvos Typical Questions in Profit ... Dividing your company into proft centers allows you to analyze areas of responsibilty and to delegate responsibilty 10 decentralized units, essentially treating the profit centers as companies within the company. PCA lets you set up your profit centers according to products (product lines or divisions), geographical factors (regions, offices, or production sites) or functions (production or sales).| Profitability Analysis Overhead Cost Product Cost Controlling Controlling + Processes + Cost Centers => ] om Object + Internal Orders Cost and Revenue Element Accounting (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Profit Center Accounting Management Accounts Fi] piste mee cus aes en mts (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Summary You should now be able to: = Use Profit Center Accounting (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP ean About This Topic This lesson introduces Profitability Analysis (CO-PA) in Management Accounting. Business Example To work in the SAP system, you need to know about CO-PA. For this reason, you require the following knowledge = An understanding of the purpose of CO-PA, = An understanding of the flow of data in CO-PA Estimated time to complete this topic: 25 Minutes Objective(s) = Analyze the profitability of external market segments (©2017 84° SE Align resrvosProfitability Analysis (©2017 84° SE Align resrvos Sales Region North Product Prodt Product Group Electronics Customer Cust Cust.Grp Wholesale’ Federal Land Bavaria Sales Rep. Miller Revenues 800 Sales, discounts, and returns 100 Cost of goods sold 650 Food _Bicy. Electr. PRODUCT GRP Ror Rey Brea eeBI ovaer-tocasn Processing in SAP ERP Typical Questions in Profita... The alm of CO-PA Is to provide the board of directors, sales and distribution, marketing, planning, and other groups. in your organization with market-oriented decision support. Who are the largest customers and who has the strongest growth? Has your sales unit reached its contribution margin target? How successful was the last ‘marketing campaign for a certain product line? What effect does a price determination strategy have on a customer group? (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Data Flows in Profitability A... Overview of the Data Flow in Profital Direct assignments can also be made _manualy trom Financial > Accounting to CO-PA. To splay ee Segments all overhead costs in CO-PA, you I alocate the overhead costs that were not allocated to Product Cost Controlling to CO-PA Overhead Cost Controlling Controlling The options to display all Pi C overhead costs in CO-PA are as + Processes —> ost tonne! + Cost Centers | Object ottows * Internal Orders = Allocation of internal activities = Assessment = Order settlement 1 Project settlement Cost Estimate ‘Cost and Revenue Element Accounting (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP ‘Answers tee ars Sales suai - ‘Customer discount Sales commission Direct sales costs ; Cereenrpeg Pena a Fixed production costs Revenue | ‘variances. (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP ean Summary You should now be able to: = Analyze the profitability of external market segments (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP About This Topic This lesson introduces the integration points of the order-to-cash business process. Business Example Your company wants to implement the order-to-cash business process. For this reason, you require the following knowledge: = An understanding of how the order-to-cash business process integrates with other SAP ERP applications Estimated time to complete this topic: 15 Minutes Objective(s) = Define the order-to-cash integration points (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP a Order-to-Cash Integration Points Inventory ‘Management vy Sales Order — Tatton Mant = vcard | | racaiuetng| [Rmnalacouing] _[Peneacnatng ‘Management ‘Management Sas ecuning reuse Met (©2017 84° SE Align resrvosBI ovaer-tocasn Processing in SAP ERP Summary You should now be able to: 1= Define the order-to-cash integration points (©2017 84° SE Align resrvos