Deliver Sales Order

1. Review Sales Order in Stock/Requirements List

At this point in the Fitter Snacker Low Carb case study, you should have produced and received
enough NRG-C bars into finished goods inventory to satisfy seven (7) of the ten (10) cases
required to fulfill Houghton Health Club’s order. To confirm this, call up the Stock
Requirements List for your ##F120 NRG-C material. To check this, follow the menu path:
Logistics Production MRP Evaluations Stock/Requirements List
(MD04)
which will bring up the following screen:

Enter ##F120 for material and ##PT for

plant, then click on the Continue icon

Enter ##F120 for material and ##PT for plant, then click on the Continue icon ( ) and
the Stock/Requirements list for the NRG-C bar will be displayed:

Current inventory (Stock) is only 7 cases.

The sales demand (CusOrd) is for 10 cases.

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The Stock/Requirements list shows 7 cases available in stock, a production proposal (PlnOrd)
not yet converted to a production order, and the customer order for 10 cases of NRG-C. To be
able to ship the available quantity we would need to confirm the available quantity in this sales
order. In a typical business this might be done automatically via a periodic batch job throughout
the day or night. We could also do this manually in a sales order.

Print Screen 1: With your data fully visible, capture a screen shot image of the individual
report for ##F120 NRG-C which should show the 7 cases in stock, the sales order from the
customer for 10 cases, as well as one remaining production proposal (PldOrd) for production.
Paste the image into this week’s Word Document below any prior print screens.

Leave this screen open as we will come back to it after we have completed some of the delivery
processing steps. The Stock Requirements List report will be used for comparison purposes
throughout this exercise.

2. Confirm Available to Promise

The customer has agreed to a partial delivery so you will need to recheck and then confirm the
Available-to-Promise quantities in the existing sales order so delivery note processing can begin
right away.
Open another SAP session by selecting the 3 lines ( ) in the top left-hand corner of your
screen and then selecting New Gui Window or by pressing the Ctrl plus N keys on your
keyboard.

In this new window, follow the menu path:

Logistics Sales and Distribution Sales Order Change (VA02)
which will bring up the following screen:

Click in the Order field, then

click on the Search icon.

Click in the Order field, and then click on the Search icon ( ) to bring up the following search
pop-up window:

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Select the Sales documents

by Material Number tab.
Enter: ##F120 in the
Material field, press enter on
your keyboard.

In the search window, click on the 3 dots icon ( ) to select the Sales Documents by Material
Number tab.
Enter ##F120 in the Material field then press the Start Search icon ( ). This should
display a list with one sales document for the NRG-C bars as follows:

Double-click on the line to select your sales

order, then click on the Continue icon.

Double click on your sale order, then click the Continue icon ( ) in the bottom right and
the following screen will appear:

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Select the line for your material,

then select the Check Item
Availability icon ( ).

Select the line for your NRG-C material, then select the Check Item Availability icon ( ).
This will call up the Standard Order: Availability Control screen.

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Select the Dely proposal check mark

beside the 7 cases to confirm the qty.

The availability screen above is indicating the Open Quantity is for 10 cases (cv) for this line
item, but the Confirmed Quantity is currently zero.

It is not possible to ship all 10 cases required for this order because Fitter Snacker’s production
team has so far only produced and received one batch of snack bars to stock. As the fixed lot
size for NRG-C is 7 cases, a second batch would need to be produced before this order could be
shipped as a complete delivery. Only seven cases are currently available-to-promise.

Rather than make the customer wait, the delivery proposal being presented is for a partial
shipment to the customer. By confirming to ship 7 cases now, this means there will still be three
(3) cases remaining on backorder until another batch of NRG-C bars is produced and confirmed.

To confirm a partial shipment for your customer ## Houghton Health Club, click on the green
check mark ( ) beside the delivery proposal of 7 cases. This will copy the information into
the sales order and bring you back to the Change Standard Order: Overview screen, as
follows:

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Click on the Save icon to save

the changes.

Click on the save icon ( ) to save the changes made to confirm the availability of stock in
your sales order. You will see a message at the bottom of your screen indicating your order has
been saved.

Use the Back icon ( ) to return to the SAP Easy Access screen.

3. Create Delivery for NRG-C Sales Order

Now that the material availability has been confirmed in this sales order, you can now create a
delivery note that will allow the warehouse and order-fillers to pick, pack and ship the product to
the customer. A delivery note is also known as a pick ticket in some industries.

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To create a delivery for your NRG-C sales order, follow the menu path:

Logistics Sales and Distribution Shipping and Transportation Outbound

Delivery Create Single Document With reference to Sales Order (VL01N)

which will bring up the following screen:

Enter ##SP for Shipping Point

The order number should be
entered automatically.
Click on the Continue icon.

The order number should be entered automatically (if not, search for it via Material Number).

Enter ##SP for shipping point, then click on Continue ( ) to bring up the Outbound
Delivery Create: Overview screen, as follows:

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Click on the save icon to create

the delivery note document.

As we are happy with all of the default values, we can click on the save icon ( ) to create
the delivery document. You should get a message indicating the Outbound Delivery has been
saved.

Click on the Back icon ( ) to return to the SAP Easy Access screen.

4. Update Stock/Requirements List

To see the impact of creating the delivery note and to check the current inventory position of our
snack bar, switch back to the Stock/Requirements list you previously left open in another SAP
window.

[Note: If you closed the screen by mistake, open a new session and go to transaction code
MD04, then press enter on your keyboard. This will open and automatically refresh the Stock
Requirements List report for you.]

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Click on the Refresh icon. Note the addition of

your delivery note (Delvry) and the change to the
outstanding sales order (CusOrd) quantity.

Select the Refresh icon ( ) to update your requirements list. There should now be a delivery
note (Delvry) for 7 cases on your screen, and the sales order (CusOrd) quantity will have
changed from 10 to 3 cases. This is the outstanding balance remaining on the sales order after the
delivery note is processed (the 3 cases are referred to as a backorder quantity).

Print Screen 2: With your data fully visible, capture a screen shot image of the updated
individual report for ##F120 NRG-C. Paste the image into this week’s Word Document below
any prior print screens.

5. Picking the order

With the delivery created, the order can be picked, packed, and shipped. The SAP ERP system
has many capabilities to schedule these processes automatically, however, we will not consider
those in this exercise. In a highly automated warehouse, the picking of the order may be
recorded in the SAP system using bar code scanning. For our exercise, we will manually enter
the quantity picked.

Switch back to the other session you had open (the one back at the main menu, and not the one
with the Stock Requirements session), and then follow the menu path:

Logistics Sales and Distribution Shipping and Transportation Outbound

Delivery Change Single Document (VL02N)

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which will bring up the following screen:

Your delivery number should automatically be entered. Click on the Continue icon or press
enter on your keyboard to bring up the following screen:

Click on the Picking tab, then

Enter 300 for SLoc (Storage location)
and 7 for Pick quantity, then click on
the Save icon.
This screen allows you to enter a different pick quantity than what was in the order in case the
inventory in the warehouse does not match the inventory level shown in the system. Of course,
the idea with an integrated information system like SAP is to have 100% accurate, real-time
inventory information, but mistakes in entering and recording inventory transactions do occur.

We will assume that the inventory is accurate and the order can be completed, so enter 300 for
Sloc (storage location) and 7 for Picked Qty, then click on the Save icon ( ).

You should get a message like the following at the bottom of the page:

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Switch to the other session, which should still be showing the Stock/Requirements list. Click on
the refresh icon ( ) to see if picking the order has changed anything:

Click Refresh icon. Storage location is now displayed.

In case you haven’t noticed, the Stock/Requirements list has changed very little. While we have
picked the cases of snack bars off the warehouse shelf in preparation for shipping, according to
the SAP system they are still Fitter Snacker’s snack bars.

The only change is that the storage location for the delivery is now showing. In the next section,
we will post the goods issue (PGI), which will signify that the snack bars have been removed
from Fitter Snacker’s inventory.

6. Post Goods Issue

In the SAP logistics terminology, we receive goods into inventory and issue goods from
inventory to the production floor or to the customer. In the accounting world, we record business
transactions by posting them to an account. Thus, when we post the goods issue, we record the
change in stock level and financial position of the company because of sending the goods on
their way.

To perform the post the goods issue for our NRG-C delivery note, return to the previous session
(not the Stock Requirements List). You should still be on the Change Outbound Delivery screen.
(If not, go to transaction code VL02N and then press enter on your keyboard.)

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The document number should

be entered automatically.
Click on the Post goods issue
icon.

After clicking on the Post Goods Issue icon, the following message should appear at the bottom
of the screen:

Once the inventory has been goods issued out of stock, it is at that point when a packing slip
typically is printed out from the system. The packing slip should therefore be placed on the side
of the package(s) before leaving Fitter Snacker’s building. This will ensure our customer is able
to easily locate it when the shipment arrives at their location.

The packing slip will be used by the customer’s receiving department to verify the inbound
quantities match against the items requested by their purchasing department.

Switch to the other session, which should still be showing the Stock/Requirements list. Click on
the Refresh icon ( ) again to see if post goods issuing the order has changed anything on the
Stock Requirements report:

The Delivery is gone, and the inventory level is

reduced to zero (from 7 cases).
Sales Order shows 3 cases still outstanding.

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Posting the goods issue has removed the Delivery document from the Stock/Requirements list
and reduced the available inventory level by 7 cases. This is because it is no longer a
requirement.

Use the Back icon ( ) to return to the SAP Easy Access screen.

In preparation for the next step in the process, click on the SAP Menu icon ( ) to restore
your screen to the original collapsed view of the SAP Easy Access menu.

7. Invoice the Customer

Perhaps as important as delivering the customer’s order on time and in good condition is
properly billing the customer for their purchase. As this case study was for a make-to-order
produced finished good, we want to be sure to invoice the customer in a timely manner.

If we don’t invoice the customer, we aren’t likely to be paid. Thus, it is important to be able to
determine which customers still need to be billed.

We can use the Billing Due List to create the invoice for the NRG-C snack bars that have just
been shipped. To create the Billing Due List for your Sales Organization, follow the menu path:

Logistics Sales and Distribution Billing Billing Document Process Billing

Due List (VF04)

which will produce the following screen:

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Enter a date a week in the past in the Billing

date from field.
Today’s date will show up automatically in
the to field.
Enter ##FS for Sales organization
Check both Order-related and Delivery-
related check boxes.

Enter the information shown above, then click on the Display Bill List icon ( )
at the bottom of the screen. This will produce the following screen:

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Make sure the line/row is selected,

and then click on Collective billing.
document

There should only be one item on the list. Click in the check box to select it, and then click on
the Collective Billing Document icon ( ).

It won’t appear that much has happened, but an invoice will have been created. You can confirm
this by moving the grey scroll bar at the bottom of the Billing Due List screen all the way to the
right:

Move the scroll bar to the far right.

Status column shows Green check
when successfully processed.

To confirm the billing document was properly generated, use the Back icon ( ) until
you are returned to the SAP Easy Access screen.

8. Verify the Document Flow

In SAP, the Document Flow links all the documents related to a particular sales order. You
likely have reviewed this feature in SAP in a previous SAP exercise. We will access the
document flow from our delivery note but could easily navigate to or from any of the other
linked documents (such as the sales order or invoice) if required. To do so, follow the menu
path:

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Logistics Sales and Distribution Shipping and Transportation Outbound
Delivery Display (VL03N)

which will produce the following screen:

Your delivery document number should be entered automatically. Follow the pull-down menu
path:
More⭢ Environment⭢ Document Flow

which will produce the updated Document Flow as follows:

Click on the Journal

Entry line, then
click on the Display
document icon

Notice that the status of the Outbound delivery is now completed. That is because the creation of
the invoice completes the Outbound delivery process. Notice also that a Journal Entry (an
accounting document) has been created.

Single click on the Journal Entry document line, then click on the Display Document icon
( ), and the following screen will appear:

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Notice that invoice was generated for $1,984.50 (7 cases x $315 per case less a Customer
Discount of 10% per case). Three different accounts have been affected by this invoice:
1. ## Houghton Health Club’s account,
2. the Sales Revenue account, and
3. the Sales Discount account.

[Note: The Sales Discount general ledger account was affected because of completing the SAP
Pricing Exercise in a class prior to the start of the Low Carb case study. If you did not complete
the Pricing Exercise you will see only the first two accounts affected and your invoice would be
for the full amount of $2,205.00 without any discounts. Check with your instructor if you are
unsure.]

Continue to click on the Back icon ( ) until you have returned to the SAP Easy Access
screen.

Click on the SAP Menu icon ( ) to restore your menus to their original collapsed
configuration for a clean start.

9. Receive payment from the Customer

Hopefully the invoice has prompted the customer to send in a payment for the NRG-C snack bars
they have received. To post the customer payment, follow the menu path:

Accounting Financial Accounting Accounts Receivable Document Entry

 Incoming Payments (F-28)

which will bring up the following screen:

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Enter today’s date for document date

Make sure company code is ##FS, and
USD is entered for Currency/rate
Enter 100000 for your Bank Account
Enter 1984.50 for Amount
Enter ##D200 for Account,
then click Process Open Items

[Note: If you did not complete the Pricing Exercise, enter 2205 for the Amount instead of
1984.50.]

After entering the data shown above, and then clicking on the Process Open Items icon
( ), you will get the following screen:

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Check to see if amount of payment has been

assigned to the accounts receivable document.
If not, double-click on the USD Gross amount

The SAP system should have automatically assigned the payment to the accounts payable item.
If not, double-click on the USD Gross amount, and the system will assign the entire payment to
the invoice. Your screen should look like the following if the amount is correctly assigned:

Double-click on the USD Gross amount until you have achieved the above result, then click on
the Post icon ( ) to post the payment. You will receive a message indicating:

Click on the Back icon ( ) to return to the SAP Easy Access screen.

Say “YES” to any pop-up window that ask if you want to exit editing.

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10. Verify the Document Flow
Now that the invoice has been sent, and the customer has paid their bill, this concludes the Fitter
Snacker Low Carb case study for NRG-C. There are no more documents in this case.
Congratulations on a successful launch of the NRG-C snack bars at Fitter Snacker.

To complete this case exercise, review the completed Document Flow for the first sale of your
make-to-order NRG-C snack bars.

To so do, from the main menu, follow the menu path:

Logistics Sales and Distribution Sales Order Display (VA03)

This will produce the following screen:

Your NRG-C sales order number should default in automatically. To display the updated
Document Flow, follow the pull-down menu path:

More⭢ Environment⭢ Document Flow

which will produce the updated Document Flow as follows:

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You’ll notice that all documents show as completed or cleared except for the Standard Order
document. This is because you have only produced and shipped enough inventory to satisfy 7 of
the 10 cases for Houghton Health Club. It is not necessary to execute any further steps in this
case study however, if this were a real business, you would certainly want to fulfill the remaining
3 cases as quickly as possible.

Print Screen 3: With your data fully visible, capture a screen shot image of your Sales Order’s
Document Flow report. Paste the image into this week’s Word Document below any prior print
screens. Resave your file as “10.1 FS## First and Last Name” before posting it to this week’s
assignment area in BlackBoard.

Remember to log out of SAP once you are done with the assignment.

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