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Intergration With Sales Order Management

This document discusses the integration between sales order management and accounting documents in SAP. It describes how a sales order is processed, from order entry to billing the customer. Key steps include generating a delivery, picking items from warehouse, posting a goods issue, and creating a billing document. This triggers the creation of related accounting documents to record the transaction and update the appropriate G/L accounts. It also discusses how closing operations are handled for accounts receivable, such as running a balance carry forward program, performing value adjustments for overdue receivables using a valuation key, and posting the adjustments.

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Yudita Dwi Nur'Ainin
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47 views6 pages

Intergration With Sales Order Management

This document discusses the integration between sales order management and accounting documents in SAP. It describes how a sales order is processed, from order entry to billing the customer. Key steps include generating a delivery, picking items from warehouse, posting a goods issue, and creating a billing document. This triggers the creation of related accounting documents to record the transaction and update the appropriate G/L accounts. It also discusses how closing operations are handled for accounts receivable, such as running a balance carry forward program, performing value adjustments for overdue receivables using a valuation key, and posting the adjustments.

Uploaded by

Yudita Dwi Nur'Ainin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Intergration With Sales Order Management

Lesson Overview
Up until now, we have entered customer invoices in Accounts Receivable. Now we will go
through the sales process in Sales Order Management and see where accounting documents
are automatically created.
Lesson Objectives
After completing this lesson, you will be able to:
 Describe the most important organizational units in Sales Order Management .
 Describe the basic sales process in Sales Order Management and trace its effects in
extemal Accounting
Business Example
At the required delivery date, an outbound delivery is created, the pumps are picked from the
warehouse, a good issue is posted, and the customer is billed.
Sales Organizations and Distribution Channels
Each sales organization can use different distribution channels to sell goods. In principle, a
distribution channel can also be used by two different sales organizations. IDES uses the
following distribution channels:
 Final customer sales
 Resellers
 Service
 Factory sales
 Store chains
 Industrial customers
 Pharmaceuticalcustomers

The combination of a sales organization and a distribution channel is also known as a


distribution chain.
The divisions are assigned to the distribution chain from which they can be sold. The
combination of distribution chain and division is a sales area.

Customer-specific arrangements, regarding partial deliveries or terms of palment, for


example, can be made for each sales area. Statistics can be created and separate marketing
activities carried out within a sales area.
Sales Area Data in the Customer Master Record
A sales area (the combination of sales organization, distribution channel and division) must
define sales area-specific settings for a customer before it can start doing business with that
customer.
An effective processing of sales orders involves all sales activities in a chain of narrowly
integrated processes. The SAP system allows you to do this kind ofsales order processing.
The individual steps within a sales process are thus mapped by interlinked electronic
documents. The SAP sales process begins with the setting up and the maintenance ofcustomer
relationships and ends with the invoicing ofthe delivered goods or the services rendered to the
customer. The posting of incoming payments from the customer is already part of mySAP
ERP Financials.
Sales Process
The sales order forms the basis of the sales process. Once a customer has placed an order, a
sales order must be created at the start ofthe process. The sales order is generated at the
distribution chain level. The ordered items can be from different divisions. The sales order is
a document in Sales Order Management and does not cause any postings in financial
accounting.

On the day ofshipping, an outbound delivery document is created. Billing for the delivery
can take place only when the goods have been taken from the warehouse stock and posted as
a goods issue. The warehouse management function is used for picking. A transfer order has
to be created, which generates the pick order. The goods to be delivered are posted as a goods
issue. A goods issue document is created in Materials Management, and an accounting
document is created in Accounting so that the goods issue is posted to the correct G/L
accounts. The accounting document debits cost of goods sold and credits inventory. The
last stage in the sales process is billing. A billing document is created in Sales Order
Management, and a printed invoice is sent to the customer. Document flow is a tool that
allows you to view the related documents in the process.
The sales order entry screen consists of several sections:
 Header Data
 Header data, Combined with position data
 Item Detail
Closing Operations in Accounts Receivable
Lesson Overview
In this lesson, we will leam to adjust for bad debt expense using a value adjustment program.
We will also run the balance carry forward program for a customer.
Lesson Objectives
After completing this lesson, you will be able to:
 Post value adjustments
 Run the balance carqr forward program
Business Example
At the end of the month, most companies have to check the recoverability of receivables and
make respective offsetting entries. The value adjustment program can help you fine-tune your
estimate by using a value adjustment key. Since this estimate is generally made for reporting
purposes, the bad debt expense transaction is usually reversed at the beginning of the next
month. At year end, a permanent bad debt expense estimate is made. At the end of the year,
the balance carqr forward program is run to transfer balances from the old fiscal year to the
new one.
Closing Operations for Accounts Receivable
At the start ofthe new fiscal year, the balance carry forward program is run, which ensures
that the balance on customer accounts is carried forward to the new fiscal year. The posting
periods ofthe old fiscal year are then blocked and the special periods for closing entries are
opened.
After this, balance confirmations are sent and evaluated, foreign currency documents are
valuated, value adjustments are carried out for overdue receivables, and accounts receivable
are reclassified into short and long-term categories for the financial statement. The special
periods can then be closed. Balance confirmations, foreign currency valuations, and
regroupings are carried out in the same way as in accounts payable. For this reason this
lesson concentrates on how value adjustments are performed.
Value Adjustment Parameters
You can use a valuation program to carry out value adjustments. The program functions like
the dunning and payment program. Each valuation run is clearly identified by the Run date
and ldentification, fields. You can specify how the valuation is to be executed by entering
parameters for the valuation run. You can use the parameters ofan existing valuation run as a
template. These parameters include the valuation method, valuation area and posting
specifications.

The valuation run analyzes the accounts and documents defined in the parameters and creates
a valuation proposal, which can then be edited, if necessary. The valuations can be:
 Entered manually in the document at an earlier date (individual value adjustment)
 Determined using a value adjustment key contained in the customer master record.
During the valuation, a certain percentage ofthe overdue amount is used. The number
of days that the respective items are overdue are used as basis for this percentage
(reserve for bad debt). Several valuation keys can be created for customers of varying
credit strength. That way, overdue accounts receivable from weaker customers will be
reduced more than those for stronger customers.
The last stage ofthe valuation process is the transfer. G/L documents post the
valuation, and the valuation is also entered in the valuated documents, so that the
valuation can be traced at any time.
Note: The valuations can be carried out in different ways if the financial statement
is created using different sets of accounting standards. The differing results are then
posted to separate accounts that are used in different financial statement versions.
Note: The valuation run can also be used to discount open accounts receivable,
which means they are valuated at their net present value. This is a requirement in
some countries.

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