The sales order process shown in the figure above, General Sales Order process with DC fulfillment, shows the standard sales order process with merchandise shipping from a distribution center. The shipping process is started with generating an outbound delivery for the sales order. Then, after picking and goods issue posting, the invoice (billing document) can be created. It is also possible to have the merchandise shipped from the vendor to the customer directly. This third-party sales order process will be explained later.
There are many channels for placing sales orders. For example, customers transmit their orders by mail, fax, or telephone, they enter their order data online via the e-commerce system's (for example, from SAP Commerce Cloud) website or mobile app, or you can have the system upload the order data automatically using an EDI connection. Sales orders can also be maintained at stores using SAP Fiori applications.
Depending on the Customizing settings that have been made, when a sales order is created, your system executes functions like the following:
Various shipping activities are scheduled depending on the sales order document type.
Depending on the schedule line category, the system checks availability on the staging date, which was determined beforehand by the scheduling function. If staging cannot be guaranteed, the system automatically generates new schedule lines.
Item/schedule line category determination
Your system determines an item category for each order item and a schedule line category for each schedule line for an order item.
Quantity optimizing (at item or schedule line level)
Quantity optimizing takes place at item level (or schedule line level when you are creating schedule lines manually) depending on the item category. The original quantity is retained and included in the documents belonging to the relevant sales order.
The sales order is the central document for selling merchandise (or services) to customers.
A sales order consists of a header and one or more items. The items can be broken down into schedule lines to enable partial deliveries. If the quantity of a sales order item is to be delivered in full, there is only one schedule line for the item.
Organizationally, each sales order is assigned to a sales organization, a delivery channel, and a division.
Customizing settings for the Sales Order document can be controlled by its associated sales order document type.
Depending on the item category in the sales order, the ordered goods will either be delivered from a site (item category TAN), or shipped from the vendor to the customer directly (item category TAS). This is often the case, for example, for custom-made or bulky merchandise.
A sales order can contain items that belong to different item categories.
Cross-channel sales scenarios can also be mapped in the system. For example, a customer may create a sales order in the Retailer's online shop, and instead of regular delivery from a DC, select merchandise pick up in a specific store (click-and-collect). Another example: In a store, a sales order could be created using a SAP Fiori app for either pick up in own store, or for pick-up in another store, or for delivery from a DC.
In the following, both the stock reduction process, and the third-party process will be introduced. At the end of the lesson, the click-and-collect process will be introduced.
Sales Order with Stock Reduction
To introduce the sales order process with the TAN item category, we will use the process variant sales order with stock reduction. Regularly, sales orders are processed in fulfillment centers (mainly distribution centers). This means that deliveries are generated for processing in the warehouse, where the merchandise is to be picked, packed, and shipped from the warehouse. Then, the customer invoices can be generated. In our example, a customer is in a home improvement (DIY) store and wants to buy an aluminum ladder. This item is not sold over the counter, but can be picked up from a separate issue counter. In this example, the sales order will be created, delivered, and billed by store associates using SAP Fiori applications. To make sales order processing as simple as possible, you can set up the system to automatically create the outbound delivery document for the sales order item. The store associate at the issue counter collects the merchandise and posts goods issue. Then, the invoice can be created.
In general, with item category TAN, the sales order item is relevant for delivery generation, which means the goods are picked and shipped from either a DC or a store. When the outbound delivery was processed including the goods issue posting, then the billing due list for delivery-related billing is updated. With that, the invoice can be created.
The documents in the sales and distribution process are connected by the document flow. This allows you to display the history and the status of your order in the sales and distribution process.
You can display the document flow as a list of interconnected documents. The sales order document flow shows the documents created referencing the order. The other documents also have a document flow display function, for example the outbound delivery, where you can see the sales order as a preceding document, as well as the subsequent documents, such as a picking request, and the goods issue material document.
From this list, you can display the relevant documents and status overview for the documents in question. This provides you with a quick overview of the status of your sales processes, thereby helping you to answer customer questions quickly and efficiently.
The sales order function is fully integrated in SAP Fiori. The SAP S/4HANA function Sales Order Create (transaction code: VA01) is available in your SAP Fiori business catalog for this training, and it is called Create Sales Order for Retail. It will be used to create the stock reduction -, the third-party -, and the click-and-collect sales orders. The Manage Sales Orders app, which will be introduced next, is also included in your SAP Fiori business catalog.
The SAP Fiori app Manage Sales Orders provides a comprehensive search function for sales orders. For each sales order, several options are available. For example, by clicking on the sales order number, you can choose to change the document, track the status, and so on. As shown in the figure SAP Fiori App: Manage Sales Orders, you can display the status by clicking on the Overall Status link. This view provides further functions For example, by clicking on the Outbound Delivery box, you can choose to change the document, or perform various subsequent processing steps, such as generate the picking document, or post goods issue.
Invoices can be created in SAP Retail in the following two ways:
Create an individual billing document for a specific sales order or delivery for which you want to create an invoice. Select several reference documents for which invoices are to be created from the billing due list. The documents can be selected according to various criteria, such as the ordering party and the destination country.
If an outbound delivery was created with reference to the sales order to ship the merchandise from a retail site (DC or store) to the customer, delivery-related billing is used. This means for creating the invoice, the system uses the conditions of the sales order, and the goods issue quantity of the outbound delivery to determine the invoice amount. If the invoice for a third-party sales order has to be created, sales-order related billing is used. This means, the system uses both the conditions and the sales order quantity to determine the invoice amount. It is also possible to use a proof-of-delivery (POD), so the invoice can only be created once the customer confirmed the merchandise receipt.
A billing document (for example, an invoice, credit memo, or debit memo) is assigned to a company code and a billing type to control the document. For example, billing types are F1 = invoice, G2 = credit memo, and L2 = debit memo. For more information, see Customizing.
A billing document consists of a header and one or more items.
When a billing document is generated, an accounting document is generated in financial accounting as well. The system determines the relevant accounts (automatic account determination), which are then debited accordingly.