Sales Order Management
SAP Best Practices for Retail
Purpose, Benefits, and Key Process Steps
Purpose
 Sales Order Management describes a Business-to-Business (B2B) scenario: you sell to your known customer(s)
(with master data record), who in turn sell(s) the merchandise to their customers (wholesale function). In
addition to sales order processing functions, this scenario also includes the following process steps: credit limit
check and availability check, consignment, backorder processing, customer contract, product catalog, online
store, customer billing document, payment handling, and subsequent settlement.
Benefits
 The entire document chain - presales phase, order, follow-up actions - forms a document flow or history. The
flow of data from one document to another reduces manual processing and facilitates problem solving.
 Backorder fulfillment from returns stock allows you to manage how returns are to be allocated for backorders
and stock transfers: If the article is unused and can be readily shipped again, then it is quicker and more costeffective to use it to fill sales backorders or stock transfer orders rather than to move it back to unrestricted-use
stock and for subsequent picking and reshipment.
Key Process Steps
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Creation of Standard Orders, Rush Orders, Third-Party Orders
Backorder Processing and Rescheduling
Creation of Customer Billing Documents
Payment Handling
Customer Returns Handling
Subsequent Settlement
Customer Consignment Handling
Customer Contract Handling
Product Catalog Handling
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Required SAP Applications and Company Roles
Required SAP Applications
 SAP SAP enhancement package 3 for SAP ERP 6.0
Company Roles
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Retail Sales Person
Retail Store Manager
Retail Warehouse Clerk
Accounts Payable Assistant
Accounts Receivable Assistant
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Process Flow Diagram
Standard Order/
Rush Order/
Third Party
Order
Backorder
Processing and
Rescheduling
Retail
Warehouse Clerk
Retail Store
Manager
Retail Sales
Person
Sales Order / Backorder Processing and Rescheduling
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Credit Limit
Check
Availability
Check
Run CATT
Monitor the
Returns Stock
Dirstibute
Returns Stock
to Backorders
Analyze Sales
Document
Rescheduling
Monitor the
Returns Stock
after
Distribution
Reschedule
Sales
Documents
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Sales Order: Alternatives
A Sales order is a customer request to the company for
the delivery of goods or services at a certain time.
The request is received by a sales area, which is then
responsible for fulfilling the order.
Standard order:
Merchandise will be collected or rather delivered and invoiced
afterwards.
Rush order:
Merchandise will be collected or rather delivered immediately and invoiced afterwards.
Third-party order:
Merchandise will be delivered directly by the vendor to the
customer. The ordering enterprise invoices to the customer
Cash sales order:
Merchandise will be collected and payed immediately.
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Options in the order creation - 1
Cross Selling:
due to the entered article
additional related articles are
suggested
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Dynamic Product Proposal:
due to the entered customer
the articles (History, PP...)
connected with this customer
number are suggested
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Options in the order creation - 2
The credit limit check is a check, whether
a customer has already covered his credit limit
and which consequences are connected
with it (warning, fault, delivery block).
This check can be carried out in every sales document.
The delivery of a product to a delivery date is only possible
if this product is available for all processing steps to be
carried out before the delivery.
To guarantee this the availability check is used in the
order.
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Backorder Processing
Check the returns stocks on goods
not damaged and not used
Listing of relevant requirements for
sales documents
Manual processing
Assignment of the ATPquantities
Backorder processing with a
selective list for sales
documents
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Select and process
backorders for a particular
article
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Rescheduling
Selection of the open sales document
Positions of the selected article
and
availability check
Analysis of the last rescheduling run
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Customer Billing Document
“Customer billing document” is an umbrella term
for invoices, credit memos, debit memos, proforma invoices, and cancellation documents.
Billing represents the final processing stage for a
business transaction in Sales and Distribution
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Process Flow Diagram
Customer Billing Document
Retail Sales Person
Alternative 1
Create Billing
Documnet Online
on the basis of
the Outbound
Delivery
Generate
Preceeding
Documents via
ECATT
Incoming
Payment in FI
Alternative 2
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Generate
Collective billing
Document in the
Background
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Payment Handling
The milestone billing in the billing plan is used for
the payment processing of a deposit.
Milestone billing means, that the total value, which
should be invoiced, is divided in several partial
amounts in the billing plan (percentage /
absolute), they are to be paid at certain dates.
A milestone billing is a schedule with particular
billing dates.
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Process Flow Diagram
Down Payment
Agreement in
the Sales Oder
Accounts Receivable
Assistant
Accounts Payable
Assistant
Retail Sales Person
Payment Handling
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Down
Payment
request in SD
Print the Down
Payment
Request
(Screen)
Final Billing with
Down Payment
Clearing in SD)
Print the Final
Billing
Document
(Screen)
Incomimg
Payment for the
Down Payment
Request in FI
Clear the
Payment that
has already
been made in FI
Incomimg
Payment in FI
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Customer Return
There are various reasons for returning goods:
- The goods are damaged in some way so that they cannot
be transferred back into normal stock, but have to be
returned to the vendor.
- The customer did not like the goods and wants to replace
them. The goods can, however, be reused either fully or
partially.
- The customer did not like the goods and wants their
money back or a credit memo. The goods can be
reused either fully or partially.
When the returned goods are received from the customer,
they are initially posted into blocked returns stock. The
returned goods are checked and a decision is made as to
what
to do with them, for example: breakage stock (returned
to vendor or destroyed), staff sales, transfer to
normal stock/distribution to backorders.
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Process Flow Diagram
Customer Return
Preparations
Retail Sales Person
Execution
Transfer from
Rerurns Stock
to Blocked
Stock
Stock Control
Create a
Return
Monitor the
Returns Stock
Transfer from
Blocked Stock
to Return
Delivery
Storage
location
Create a
Delivery for the
Free of Charge
Subsequent
Delivery
Create a Free of
Charge
Subsequent
Delivery
Goods Issue for
the Free of
Charge
Subsequent
Delivery
Check the
Document Flow
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Create a
Returns
Delivery
Full Transfer
Postingto
UnrestrictedUse Stcok
Stock Control
Release the
Returns for
Subsequent
Processing
Post the Goods
receipt for the
Returned
Goods
Remove the
Billing Block
Create Credit
Memo
Issue the
Credit Memo
Release to
Accounting
Create a Return
with Free of
Charge
Subsequent
Delivery
Create
Returns Order
Create a
Returns
Delivery
Stock Display
Post the Goods
Receipt for the
Returns
Post the
Returns
Delivery
Monitor the
Returns Stock
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Process of Returns Handling
Finance:
Logistics:
 Input of customer returns
 Input of customer returns
Credit note or
 Goods receipt
 Subsequent delivery free of
charge
 Creation of customer returns order
 Stock transfer posting
 Stock
 Stock correction (Input to
blocked stock)
 Following processes
 Log. invoice verification
 into unrestricted stock or
 Dispatching to backorders
 Transfer posting to returns stock
 Following processes
 Return delivery to vendor
 Invoice verification
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Arrival of the return goods
Goods receipt posting
Posting in blocked stock
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Evaluation of the return goods
Control of the goods
Decision of further use
Transfer back to
unrestricted stock
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Transfer to
returns stock
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Additional Use I – Unrestricted Stock
 Tranfer back to unrestricted stock
 Allocate to open orders
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Additional Use II – Returns Stock
 Transfer back to returns stock
 Disposal
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Subsequent process
Return delivery to vendor
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Subsequent Settlement
As part of the subsequent settlement procedure,
you can offer a reduced price, for example,
when a customer buys certain quantities of
particular articles together, uses a customer
card for payment, or reaches or exceeds the
sales volume in a period that has been agreed
upon in advance.
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Process Flow Diagram
Subsequent Settlement
8.3
Rebate
Processing
(in SD)
Retail Sales Person
8.3.1
Display the
Status of
Rebate
Agreement
8
Subsequent
Settlement
8.3.1.1
Settlemenr of
the
Agreement(s)
8.3.5
Display Sales
Volume Data
8.3.4.3
Create Billing
Document
8.3.6
Display Drill
Downs
8.3.7
Carry out
partcial
Settlement
8.3.2
Create Rebate
Agreement
8.3.4.2.3
Document
Flow
8.3.7.1
Release Credit
Memo Request
for the Partial
Rebate
Settlement
8.3.3
Update the
Sales Volume
8.3.4.2.2
Create Transfer
Order and
Corfirm with GI
8.3.7.2
Bill Credit
Memo Request
for the Partial
rebate
Settlement
8.3.10
Display
Payment
History
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8.3.4
Generate
‚New‘ Sales
Volume
8.3.4.2.1
Create Delivery
8.3.8
Release
Agreement
for
Settlement
8.3.9.2
Bill Rebate
Credit Memo
Request for the
Final
Settlement
8.3.4.1
Create Sales
Order
8.3.4.2
Outbound
Delivery
8.3.9
Create Final
Settlement
8.3.9.1
Release Rebate
Credit Memo
Request for the
Final
Settlement
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Customer Consignment
Consignment goods are goods that are stored at a
customer location but that are still owned by your
company. From a planning point of view this stock is
no longer available and is managed independently.
The customer is not obliged to pay for these goods until
they remove them from consignment stock.
Otherwise, the customer can usually return
consignment goods that are not required.
Consignment processing is advantageous to both
parties. Customers store the consignment goods at
their own warehouses. The customer can access the
goods in the consignment warehouse at any time.
They are only billed for the goods when they are
removed from the warehouse and only for the actual
quantity taken.
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Process Flow Diagram
Customer Consignment
Retail Sales Person
Consignment
Fill-Up
Create Delivery
Billing
Create and
Corfirm
Transfer Order
Goods Issue
Document Flow
Consignment
Stock
Alternative 1:
Consignment
Issue
Reduce the
Consignment
Stock at
Customer
Billing or Credit
Memo for the
Consignment
Return Created
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Remove the
Billing Block
Goods Receipt
Optional Process
after
Consignment
Issue:
Consignment
Returns
Alternative 2:
Consignment
Pick-Up
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Customer Contract
Customer contracts are outline customer
agreements that display when goods are
purchased within a certain time period.
Contracts are concluded with the customer so that
the purchasing/production and sale of goods
can be estimated better, which in turn enables
better conditions to be negotiated.
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Process Flow Diagram
Retail Sales Person
Customer Contract
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Quantity
Contract
Create Contract
release Order
for Quantity
Contract
Value Contract
Create Contract
release Order
for Value
Contract
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Product Catalog
The product catalog is the basis for printed and
electronic catalogs. The catalog is maintained in
the SAP ERP System and can be transported to
external systems and processed as templates
for print catalogs or electronic catalogs (CDROM or Internet). IDocs and BAPIs are
available for exporting the catalog data.
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Process Flow Diagram
Product Catalog
Maintain
Documents and
Texts in the
Article Master
Retail Sales Person
Create
Document Info
Records
Add Articles
Layout Areas
Manually
Add Articles
Layout Areas
Using the
Default Article
Create LowerLevel Layout
Areas
Alternative:
Create Layout
Hierarchy
Automatically
Create a
Layout
Hierarchy
Manually
Maintain Texts
and Documents
for Articles and
Layout Areas
Link between
Promotion and
Product Catalog
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Create a
Product
Catalog
Create the
Layout
Hierarchy of the
Product Catalog
Maintain
Layout Areas
Promotional
Sales Prices
Create Basic
Data
Determine the
Pricing
Procedure
Maintain
Articles
Create layout
Hierarchy
Pricing in the
Product
Catalog
Customer
Pricing
Procedure
Create a
Promotion
Product Catalog
Create Basic
Data
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