Sales Process (Main Points)

1)      The sales and distribution process comprises the following activities Pre-sale activities, Sales order processing, Procurement, Shipping, Billing and Payment (Payment is a part of FI module).

2)      The pre- sales documents are Inquiry, Quotation and Outline Agreement.

3)      Quotations are legally binding agreement whereas Inquiries are not legally binding.

4)      Document flow represents the life cycle or audit trial of document in SAP which record the status of each document and the entire process.

5)      An inquiry item is given completed status in the document flow as soon as it has been referred to in a quotation (Even if only part of the quantity is copied into the quotation).

6)      A quotation item is given completed status only when it is completely referred to in a sales order. if only part of the quantity is copied then it will receive the status “ Partially Completed “.

7)      If you enter a reason for rejection, then the item receives the “completed” status.

8)       Schedule line in inquiry is only for information purposes.

9)      Pricing will be activated in inquiry but the functions like availability check, transfer of requirement and goods movement type were inactivated, since it is not relevant for delivery.

10)  Quotation is a legally binding agreement between customer and company that is valid for a certain period but it is not relevant for delivery.

11)  The Sales Order contains all the relevant info for completing the whole process in S&D cycle.

12)  Each sales order is assigned to a unique sales area.

13)  The system automatically derives the sales area from the sold-to party partner function, if you don’t enter any sales area for the order.

14)  While entering a sales order if there is master data for the sold-to party in several sales areas, a selection screen appears where you can choose the sales area you require.

15)  The mandatory business partners for a sales transaction are the sold-to party, ship-to party, bill-to party and payer.

16)  You can create a sales document with reference to a preceding document from both the initial screen and during document processing.

17)  Using the “Selection list” you select one or more items in the referenced document and change the order quantities according to your customer's requirements. This allows you to copy only certain items or partial quantities of an item into the new document.

18)  You must first configure the corresponding copying controls if you want to create a document with reference to another document.

19)  Data in a sales document will be stored in three levels they are: Header data, Item data and schedule line data.

20)  The object to control the Header data in a sales document is sales document type.

21)  The object to control the Item data in a sales document is Item category.

22)  The object to control the schedule line data in a sales document is schedule line category.

23)  The header contains general data and default values that are valid for the whole document.

24)  The item contains data specific to the particular item and it is valid for only that item.

25)  The system will determine the item category based on the sales document Type + Item Category Group + Higher Level Item Category + Usage

26)  At item category level you can decide whether the business data in the item data can be different to that of the document header.

27)  A schedule line in a sales document contain information’s about delivery date, quantity to be delivered and quantity on that date.

28)  A schedule line with confirmed quantity is created only if the stock is available on the requested delivery date by the customer. If it is not available then a new schedule line will be created with confirmed quantity based on forward scheduling.

29)  The required delivery date is proposed by entering the lead time in days in the sales document type in addition to selecting the “propose delivery date”.

30)  In the copy control table the Data Transfer Routine will determine which data or fields to be transferred to the next document.

31)  In the copy control table the Requirement Routine will determine under what condition data is to be copied to the next document.

32)  With switches you can control whether the item number has to transfer from the preceding document to the newly created document.

33)  In copying control at header level you can define which source document can be copied to which target document type.

34)  In copying control at item level you must activate the “Update Document Flow” button, to update the document flow, at full document level.

35)  In copying control at item level you define:

Ø  How the completed quantity in the item in the source document is affected by the copying action.

Ø  Determine the quantity that is copied to the target document

Ø  Define how the pricing data should behave while copying

Ø  Whether the document flow need to be updated at full document level or not.

36)  System will check the availability of a product at plant level.

37)  In a sales document the proposal for the complete/partial deliveries will come from the customer master record.

38)  At item level the proposal for complete/partial deliveries will come from the customer master info record.

39)  The objective of backorder processing is to confirm the delivery date requested by the customer.

40)  While performing a backorder processing the system will consider the different lead times such as: the pick/pack time, loading time, transportation lead time and the transit time.

41)  An incompletion log is a list of all the data essential to your company in a sales document that has not yet been entered in the system. Customizing at sales document level you can decide whether the incomplete sales document can be save or not?

42)  An Incompletion procedure is set up and assigned at sales document type, item category level and schedule line category level. A status group will be assigned to each field in the incompleteness procedure, which will determine the subsequent course of the business process, if any data is missing in the document.

43)  In consignment process the ownership of the goods doesn’t get transferred to the customer till consignment issue takes place.

44)  The sales documents that are used for sales from plant processes are Rush order and Cash sale.

45)  Material determination allows you to exchange the materials automatically in the sales document.

46)  The system will use the condition technique to exchange the materials automatically in the system.

47)  You do not need a material master record for the material number that you are replacing.

48)  In manual production selection, the system does not automatically replace the product. Instead, it displays a list of all of the substitution materials and other information in the master record. You can then select the required material from this list.

49)  If automatic product selection is being used, the system may display the entered and substituted material as main and sub-items in the sales order.

50)  In automatic product selection, when you enter an order, the system tries to fill the quantity of the order with the first material in the material determination master record. If there is not enough of this material, it fills the remaining quantity with the next material.