Enterprise Wide Information Systems Customer Order Management (Continued) Instructor: Richard W. Vawter

1. Enterprise Wide Information Systems Customer Order Management(Continued)Instructor: Richard W. Vawter

2. Topics • Organizational and Master Data • Business Process for Customer Order Management • Reporting and Analysis

3. Delivery Creation

4. Delivery Overview Within the delivery process the following steps are executed either automatically or manually.

5. WM FI MM Packing List Deliveries and Shipments • Upon the creation of the delivery, the customer request starts to be processed in the warehouse. • A cost of goods sold and inventory valuation posting is made in financial accounting when goods issue are processed integrating SD with MM and FI.

6. Issuing Invoices

7. Billing • Billing Supports: • Creating invoices for deliveries and services • Creating credit and debit memos on the basis of requests • Transferring posting data to financial accounting • Invoicing usually occurs after the product has been shipped to the customer. • All the information entered for the sales and delivery documents are transferred to the invoice.

8. Invoicing and Profitability

9. Controlling - Profitability Analysis (CO-PA) • Once transferred to profitability analysis, there are many ways in which the revenues are analyzed depending on the requirements of the organization. • The CO-PA tool allows you to look at the profitability of a company’s customers using real-time information. • You can determine which elements of the market are more favorable or more costly, and allow the organization to focus its effort in a specific direction.

10. Customer Payment

11. Customer Payment • The final step of the Customer Order Management cycle. • The Customer Payment step includes: • Posting payments against invoices • Reconciling differences, if necessary • The processing of the customer payment is done in accounts receivable against open items.

12. Summary of the Business Process Flow • Document represent transactions in the R/3 system. • The transactions form a chain of related documents. • The entire chain of documents creates a document flow. • The system copies data from one document into another to reduce data entry and make problem resolution easier.

13. Topics • Organizational and Master Data • Business Process for Customer Order Management • Reporting and Analysis

14. Reporting and Analysis • Standard Reporting • ‘List documents’ and master data. • Provides analysis through sorting and totals. • Displays details by drilling down to the original documents. • Sales Information System • Extracts and stores performance measurements. • Allows you to summarize and drill down by selected characteristics. • Provides basis for analysis and support for management decisions. • Allows you to export data into Excel or other PC files.

15. The Logistics Information Library allows you to integrate standard and flexible analyses as well as your own reports. SAP provides standard list functionality to create worklists in sales, delivery, billing, and customer payment. The Sales Information System (SIS) summarizes transactional data (e.g. sales history for the last month). Sources of Information in Sales & Distribution

16. Lists • The R/3 System provides lists to support the entire COM cycle. • They are simply views of data generated during the cycle. • You can drill down on the data to view the original documents

17. Logistics Information Systems Logistics Information Library Sales Information System Purchasing Information System Inventory Controlling Shop Floor Information System Maintenance Information System Quality Mgmt Information System R/3 Logistics Processing Systems Sales and Distribution (SD) Materials Management (MM) Production Planning (PP) Plant Maintenance (PM) Quality Management (QM) Logistics Information System (LIS) • The LIS exists for the entire logistics system in R/3 • The LIS contains several information systems such as: • Sales Information System • Purchasing Information System • The LIS extracts data from the operative applications; offering it in many different views, the depth of which is determined by the user. • Inventory Controlling • Shop Floor Info System

18. Customer analyses Sales Order value Invoice Org. Amount 1000 100,000 90,000 Drilling down by customer Sales Org.: 1000 Customer PO Value Invoice Amount Smith Inc. 60,000 50,000 Brown Inc. 40,000 40,000 Drilling down by period Sales Org.: 1000 Customer: Smith Inc. Month PO Value Invoice Amount Feb. 1998 25,000 20,000 Mar. 1998 35,000 30,000 Sales Information System (SIS) • The purpose of the SIS is to provide management level reporting and analysis. • The SIS tool is organized into a variety of drill down lists, allowing you to display the level of detail that meets your reporting requirements. • Additional • Information • Material master • Customer master • Documents • Functions • ABC Analysis • Classification • Dual Classification • Planned-Actual comparison • Correlations

19. Summary of Customer Order Management • The basic COM process includes the following:  order delivery invoice payments. • Some Sales and Distribution integration points are with FI, MM, and PP include:  credit limit check  inventory sourcing (availability check)  cash forecast  updating inventory balances  updating G/L accounts  creating demand requirements  transferring posting data to financial accounting,  transferring information to profitability analysis • The two reporting tools used in the COM environment are: • Standard Reporting - Lists • Logistics Information System - Sales Information System