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CH 5

The document describes various order handling scenarios in sales logistics, including standard order handling, rush orders, make-to-order, assembly-to-order, returns handling, and decentralized shipping. It outlines the key steps in each scenario such as determining customers, processing quotations, checking availability, creating deliveries, billing, and coordinating with other business units like procurement and production planning. The goal is to efficiently process customer orders and coordinate fulfillment and delivery logistics.

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48 views

CH 5

The document describes various order handling scenarios in sales logistics, including standard order handling, rush orders, make-to-order, assembly-to-order, returns handling, and decentralized shipping. It outlines the key steps in each scenario such as determining customers, processing quotations, checking availability, creating deliveries, billing, and coordinating with other business units like procurement and production planning. The goal is to efficiently process customer orders and coordinate fulfillment and delivery logistics.

Uploaded by

api-3734769
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Sales Logistics

l Endring i kundeatferd/-forventninger

Organizational Supply
units Chain
Scenarios

Sales
Logistics

Business Business
Objects Process

Standard Order Handling


l Helping a customer decide what to buy
l Processing customer orders
l Coordinate delivery and related logistics
l Producing customer invoices

1
Steps in the Order Handling
Scenario
l Mailing Campaign Processing
l Sales activity Processing
l Customer RFQ Processing
l Customer Quotation Processing
l Standard Order Processing
l Delivery Processing
l Goods Issue Processing for Stock Material
l Billing

Mailing Campaign
l Determination of business partners
l Initiation of correspondence
l Preparation of enclosures for the mailing
campaign

2
Sales Activity Processing
l Three kinds of activities:
– Personal, Telephone, Written
l Determine business partners/contact person
l Nine outcomes possible:
– Unsuccessful, agreed-on follow-up, request for
quotation (RFQ) from contact, quotation from
contact, order from contact, credit or debit
memo, return order, free-of-charge delivery,
consignment sales order

Customer RFQ Processing


l Quotation: ”an offer from a company to sell or deliver goods or
services to a customer within a certain period of time and under
certain conditions”
l Quotation can be created with or wihout customer
inquiry
l Customer inquiry leads to two tasks:
– Determine business partner & enter items
l Check inquiry item
– Make-to-order, kept in stock, not kept in stock, can be configured
l Edit customer RFQ data
l Check for acceptance of the request

3
Customer Quotation
Processing
l Quotation from request or contact:
– Determination of business partners & determination of quotation
items
l Check if quotation is valid:
– Check prices and taxes & if item in warehouse
l Edit the quotation
l Create quotation
l If valid:
– Standard order processing
– Third party order processing
– Customer contract processing
– Customer scheduling agreement processing

Standard Order Processing


l Carries out normal sales transactions, and if based
on a quotation this is binding
l 5 tasks conclude the standard sales order
– Pricing
– Availability check
– Transfer requirements to materials planning
– Shipping point and route determination
– Credit limit check
l Accepted, blocked or refused order

4
Delivery Processing
l Several different tasks in both sales and procurement
logistics can set off delivery processing
l Monitor delivery date
– Takes or doesn’t take place
l Choose kind of delivery if date takes place
l Open delivery
– Credit requirements are fulfilled or delivery can’t be created
l Check stock and if item is handled in batches
– Picking, then packing
l A delivery is created: triggers seven possible outcomes

Goods Issue Processing for


Stock Material
l Credit control
– Enough credit: processing continues
l Post goods

l Select valuation type

5
Billing
l Can be the result of several different sales
and distribution functions
l Choose type of invoice
l Billing document is created
l Determine or transfer the billing prices and
taxes
l Finally controlling may take over the
document

Contract Handling and


Scheduling Agreements
l Businesses require ever-increasing levels of
quality and responsiveness from a decreasing
number of suppliers
l A scheduling agreement allows you to determine
specific delivery quantities and dates, but the
scenarios are similar in coordinating
l The process flow is similar to standard order
handling with a few differences
– Outline agreement
l Contract handling, schedule agreements w/o release orders

6
Third-Party Order Handling
l Leverages the relationship between a company
and its customers
l In addition to to processing a sales order the
company must coordinate with a purchase from
the supplier
l After quotation acceptance a third-party order is
created
l Purchase requisition created from tpo
l The rest mainly as standard

Customer consignment stock


handling
l Goods stored on the customer’s premises for
eventual use and/or sale but still owned by the
company
l R/3 tracks consigned stock with a ”special stock”
designation assigned to each customer
– Possible to have multiple stock consignments
l Similar to standard order handling, except special
type of sales order and delivery

7
Cash Order Handling
l Over-the-ounter scenario
l Interaction is different
– Supplier expects to get paid without traditional
accounts receivable cycle
– Customer excpects to receive goods
immediately

Rush Order Handling


l Delivery document and sales order can be
created at the same time
l Used if the customer requires immediate
delivery
l Rest is similar to standard orders

8
Make-to-Order Sales Order
Handling
lA sales order for goods that is not yet
manufactured
– Nonvariant products
– Single-level products with variants, without
BOM
– Multilevel products with variants, w/o BOM

Assembly-to-Order Sales
Order Handling
l Differs from make-to-order
– The product’s components have already been
produced and are available in the warehouse
– Production proceeds in a single step
– This process is also suitable for products that
can be described in detail using characteristics
with reference to a sales order

9
Empties and Returnable
Packaging Handling
l Consists of items that sit in the customer’s
warehouse but are still property of your company
– Must be managed separately from the rest of your stock
– Must be managed separately for each customer
– Empties and returnable consists of 3 business processes
l Shipment of returnable packaging
l Pickup of returnable packaging
l charges for packaging not returned

Returns Handling
l Canbe initiated by customer or the external
sales force
l Various situations can arise during returns
processing
– A return is created to handle the process
– Eligibility of the complaint is checked
– Credit memo
– Replace the goods

10
Decentralized Shipping
l Integrating data access on a global basiss while enabling
the implementation of local distributed systems
l R/3 uses a technology called Application Linking and
Enabling (ALE) to implement distributed solutions
– Intermediate Documents (IDOC’s) are transmitted between
communicating systems
l Sales order and stock control handled on the central (host)
computer
l Delivery data are transmitted to the decentralized shipping
computer
– Relevant data from Material Master and customer data are
transferred for each transaction

11

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