After completing this lesson, you will be able to:
During business processes, the transactions entered in the system initiate several automatic data-determination functions in the background. The outcomes of these background processes depends on values from master data and configuration settings that act as inputs to the different functions. Examples of these functions are shown in the figure, Sales Processing Functions.
When you create an order, you need information about the available quantity of the ordered materials. Without this information, you cannot confirm a sales order with certainty.
You can influence the scope of the availability check within the material master data. You may do this because you have different availability check requirements for different materials. On the material master record on the Sales: General/Plant Data tab, select the Availability check field to determine whether and how the availability check is carried out for a material during order processing.
There are also various settings in customizing control tables that influence the nature of the availability check. The material availability check can be executed using different strategies (for example, using product allocations). The most important strategy is Available To Promise (ATP).
Using delivery and transportation scheduling, and calculating backwards from the customer's required delivery date, the system calculates several dates for each item in the sales order. The relevant date for the availability check is the material availability date. On this date, enough material must be available in stock to meet the confirmed customer delivery date.
The material availability check in sales orders is performed at the plant level for the corresponding item. The plant can be determined automatically or maintained manually. During automatic determination, the system looks for a valid default value for the plant in the relevant master data. If you enter the delivering plant manually during order processing, your entry overwrites the default value.
You can influence the scope of the availability check with entries in certain customizing control tables. Among other things, you can configure the information that is included in the availability check.
You define the following information that is taken into account:
When a customer orders material and you create the appropriate sales order, the supply of the corresponding material quantities must be ensured. To achieve this goal, the material requirements arising from the material quantities of the sales order items are automatically transferred and made available for Material Requirements Planning (MRP).
Based on this information, the responsible employee can decide, depending on master data settings, how to obtain the material; either externally through purchase orders, or internally through production orders.
Some customers may always want you to make one complete delivery, that is, the complete quantities of all order items must be delivered together. Others may allow partial deliveries, for example, if a single item cannot be confirmed for the requested delivery date. You can maintain the corresponding parameter for each sales area in the business partner master data.
If partial deliveries are allowed by the customer, you can also determine whether a partial delivery of a single item is possible.
To do so, maintain the corresponding parameters in the customer-material information record and/or in the business partner master data.
The main options for partial deliveries at the item level are:
As shown by the figure, Partial Delivery Agreement, the customer-material information record has the higher priority when the system determines the value to be used in a sales order.
When you enter a sales order, you can change the parameters manually. This can be necessary if a customer usually prefers complete deliveries (maintained in the business partner master data) but allows a partial delivery for one particular order.
The plant plays a central role in sales and distribution processes. As a result, it is already relevant during the creation of sales orders. Among other things, the plant is relevant for the following functions:
Because the delivering plant is of vital importance to the whole process, when sales orders are created, the system automatically attempts to determine the right plant (at the item level) from the master data.
The figure, Plant Determination, shows the possible sources that can be used to automatically determine the plant from master data and the corresponding access sequence. You can change the value of the automatically-determined plant manually.
If no valid plant can be found in the master data records (because, for example, the field is not maintained there), no delivering plant is set in the sales document item. This means that the specific functions mentioned above (for example, tax determination) cannot be performed, and the document is incomplete.
The shipping point is the organizational unit that is responsible for shipping processing. If you sell physical products that must be delivered to the customer, when sales orders are created, the appropriate shipping point is, like the delivering plant, already relevant for the corresponding items. As evidence of the importance of the shipping point, the following functions are dependent on it:
From an organizational point of view, shipping points are assigned to delivering plants. The figure, Shipping Point Determination, shows the criteria that are used to determine the appropriate shipping point for each sales document item.
The loading group can be found on the Sales: General/Plant Data tab in the material master record. The shipping condition is copied from the business partner master record of the sold-to party (the Shipping tab) into the sales document header. The plant is determined in the sales order from master data entries as previously indicated.
If no corresponding delivery document already exists, you can change the value of the automatically-determined shipping point manually in the sales order.
The route describes the path a delivery takes from a shipping point to the region of the customer's location. The route can comprise one or more sections and legs, as shown in the figure, Route Structure.
SAP S/4HANA Cloud uses the route for several transportation planning functions, including transportation scheduling. To influence transportation scheduling, the route is the source of the following values:
Route determination can be performed automatically for each delivery-relevant item in the sales document.
The figure, Route Determination, shows the different criteria that SAP S/4HANA Cloud uses to determine a route for shipping in sales documents.
The departure zone is taken from the Customizing table for shipping points. The shipping condition is determined from the business partner master record of the sold-to party (Shipping tab). The transportation group can be found in the material master data (Sales: General/Plant Data tab). The transportation zone is taken from the business partner master record of the ship-to party (general data).
SAP S/4HANA Cloud can redetermine the relevant route within the delivery document.
Using delivery and transportation scheduling, the system can check, in a sales document, if a requested delivery date can be met. To check delivery dates, several time components are taken into account as shown in the figure, Delivery and Transportation Scheduling: Components.
If the necessary time components are available, the system can use two kinds of scheduling (backward and forward) to calculate the following dates:
Material availability date: When a sufficient quantity of goods must be available for picking and packing
Transportation planning date: When transportation planning should begin
Loading date: When the loading should begin
Goods issue date: When the goods must leave the delivering plant so that they reach the customer in time
Delivery date: When the goods arrive to the customer
In backward scheduling, the requested delivery date from the customer is assumed to be the relevant delivery date. In forward scheduling, the delivery date is calculated.
Backward scheduling is the first kind of scheduling performed for a sales order item. The figure, Backward Scheduling, shows the concept of backward scheduling.
The system first checks if the requested delivery date from the customer can be met. The requested delivery date is the starting point for backward scheduling. Starting with the delivery date, the system calculates the other relevant dates (such as, the material availability date) backwards using the available time components.
The calculated material availability date and the transportation planning date are of special importance. Depending on when the two calculated dates are relative to the order date, there are the following possibilities:
If both dates occur after the order date (that is, in the future) and the material is available on the material availability date, the customer's requested delivery date can be confirmed. A corresponding schedule line is created for the sales document item. The date of the schedule line shows that the confirmed delivery date is the same as the customer's requested delivery date.
The corresponding outbound delivery must be created at the earliest of the two following dates: material availability and transportation planning.
If one or both of the two dates occur before the order date, the requested delivery date cannot be confirmed. In this case, the first schedule line of the corresponding item is not confirmed. The system can then attempt to determine a confirmable delivery date using forward scheduling.
Forward scheduling takes into account the parallelism of the processes for picking and packing, and transportation planning. On the one hand, the system defines the earliest date when the material is available in the warehouse as the new material availability date. The pick and pack time is added to that date. On other hand, the system adds the transportation lead time to the order date. The later of the calculated dates is the new loading date, to which the loading time can be added to determine the goods issue date. The transit time is added to establish a confirmable delivery date. The figure, Forward Scheduling, shows the concept of forward scheduling.
If the complete quantity of the ordered material can be confirmed for the calculated new material availability date, two schedule lines are generated for the corresponding sales document item:
If the complete quantity of the ordered material cannot be confirmed for a single date and partial deliveries are necessary, the system creates more schedule lines for the corresponding delivery dates.
The process starts with the creation of a customer and standard sales order. Depending on the customer and the material, various special events take place during order entry, such as customer or material pricing.
If enough material exists in the required storage location, the process proceeds normally. If not, a stock movement takes place. Picking slips are generated to stage the product for shipment to the customer. Once picked, the physically-shipped quantity must be registered in the system to ensure that there are no differences between the sales order and the delivery document.
After the completion of picking, the shipping specialist releases the inventory. This inventory release is the actual recording of the physical quantity that is being shipped to the customer. The cost of goods sold is recorded in financial accounting.
Once the inventory is relieved, you can invoice the delivery and, in management accounting, record the revenue and the cost of goods sold.
The figure, BD9 – Process Diagram, is the process diagram for scope item BD9, Sell from Stock.
The following are the main steps of the process:
|Process Step||Role Name||Fiori App Name|
|Create Sales Order||Internal Sales Representative||Manage Sales Orders|
|Create Delivery||Shipping Specialist||Create Outbound Deliveries|
|Execute Picking||Shipping Specialists||Manage Outbound Deliveries|
|Post Goods Issue||Shipping Specialists||Manage Outbound Deliveries|
|Create Billing Documents||Billing Clerk||Create Billing Documents|
|Job Scheduling for Billing Creation||Billing Clerk||Schedule Billing Creation|
The Internal Sales Representative creates the Sales Order using the Manage Sales Orders app.
The Shipping Specialist creates the Delivery using the Create Outbound Deliveries app.
The Shipping Specialist then executes the Picking using the Manage Outbound Deliveries - VL06O app.
The Shipping Specialist then Posts the Goods issue, again in the Manage Outbound Deliveries - VL06O app.
Finally, the Billing Clerk creates the Billing Document using the Create Billing Documents app.
Alternatively, the Billing Clerk can schedule a background job for creating billing documents.
As an alternative to the manual creation of billing documents, you can schedule a background job to create them. As indicated in the figure, Relative Date Selection Concept and Date Functions, this scheduling can use relative date selection functionality to select documents for processing.
A relative date is always defined in relation to the date on which the job is scheduled to run. The system determines relative dates, such as Yesterday (single date) and Previous Month (date range), by using date functions.
SAP provides several date functions that reflect commonly understood date concepts.
With the Manage Sales Orders app, you can search for sales orders according to your filter criteria and display them in a list.
On the list created using the Manage Sales Orders app, you can execute following actions:
From the list created using the Manage Sales Orders app, you can execute different actions, for example, you can reject all items in a sales order. You can also navigate to related applications, for example, to display sales order details or display the process flow. Navigating to the process flow provides you with a graphical overview of the chain of connected process steps and the corresponding business documents (document flow). For example, you can see the status of a sales order, whether it is relevant for shipping, and if an invoice has been created. Following is a list of transactional features:
Using the Create Outbound Deliveries app, you can create outbound delivery runs from a list of sales documents. This app also allows you to display logs with information related to your sales orders or deliveries. For example, if errors occur while you are creating deliveries, the system issues a message to the log. Similarly, the system issues a message to the log if you successfully create a delivery. Following is a list of key features:
With the Create Billing Documents app, you can create billing documents, for example, invoices and credit memos, from items in the billing due list. This includes debit memo requests, sales orders, deliveries, and other Sales and Distribution (SD) documents. You can also generate temporary billing documents that you can review before converting them to final billing documents.
When searching, you can show or hide the filter bar. You can save your filter settings and restore the original settings.
Saved layout variants also save the values that you have set in filters. You can share saved layout variants with other system users. Following are view and Search features:
The Create Billing Documents app has the following transactional features:
According to the billing settings, the following actions are performed by the system when creating billing documents:
Enter the billing date and type before billing.
If you enable this setting and choose to create billing documents, the system requests a billing date and the required billing type before creating billing documents.
Create separate billing document for each item of billing due list.
If you enable this setting and choose to create billing documents, the system creates separate billing documents for each item of the billing due list that you have selected.
Automatically post billing documents
The system automatically posts all billing documents that you create to accounting and triggers output (for example, an invoice by e-mail). Note that if you do not choose to post billing documents automatically, you must post them manually using the Manage Billing Documents app.
Display billing documents after creation.
The system generates and displays temporary billing documents for the SD documents that you have selected for billing. You then have the option to save or discard them. Saving converts them to final billing documents, while discarding them returns you to the billing due list.
The process starts with the creation of a customer and standard sales order. Depending on the customer and the material, various special events take place during order entry, such as customer and material pricing.
If enough material exists in the required storage location, the process proceeds normally. If not, a stock movement takes place. Picking slips are generated to stage the product for shipment to the customer. When picked, the physically shipped quantity must be registered in the system, to ensure that there are no differences between the sales order and the delivery document.
After the completion of picking, the shipping specialist relieves the inventory. This inventory relief is the actual recording of the physical quantity that is being shipped to the customer. The cost of goods sold is recorded in financial accounting.
When the inventory is relieved, you can invoice the delivery and record the revenue and the cost of goods sold in management accounting. For details on the bundling functionality for IFRS 15, see SAP Note 2524569.
A preliminary billing document can be created from the billing due list items as an optional step. You can show it to customers, to align on exact details and change if necessary. The final billing documents, that customers are expected to settle, are created.