WELCOME

DATE:08/02/2013

Presented by NITHISH GUNDA

PRESENTATION TOPICS

Back to Back Sales Process

Consignment Sales Process Contract Process

Dunning & Correspondence with Customer

Forward Contract

BACK TO BACK SALES PROCESS

BACK TO BACK SALES PROCESS

BACK TO BACK SALES PROCESS

CONSIGNMENT PROCESS

Consignment Business Process: Consignment is the business process where by the business

appoints consignment agent on behalf of business.: Consignment agents sell the materials to the end customer

(may be on commission basis).: Consignment agent receives the material and he sells the

material to the end customer.: Consignment agent has the right to return the materials if

he does not want to sell the remaining goods.: Business treats the consignment stock as special stock.: We can map the business process of consignment in 4

phases.: (1) Consignment fill – up.: (2) Consignment issue.: (3)Consignment pick – up.: (4) Consignment returns

: The consignment process in SAP standard consist of four small processes:

: Consignment fillup (send materials to customer consignment).Here you have a consignment fillup order and a consignment fillup delivery.

: Consignment issue (issue materials from customer consignment to the customer).Here you have a consignment issue order, consignment issue delivery and a consignment issue invoice. (the flow is very similar to a normal OR flow, but the materials are issued from the consignment stock instead of plant stock unrestricted).

: Consignment pickup (pickup consignment stock and move it to plant stock).Here you have a consignment pickup order and a consignment pickup delivery.

Consignment Process

CONTRACT PROCESS

CONTRACT

Contracts are agreements with the vendor to supply materials or services under negotiated conditions and within a certain period.

Contracts are differentiated as follows:

: Quantity contracts: An agreement that a company will order a certain quantity of a product during a specified period.

: Value contracts: A contract in which the purchase of goods or services up to a total value is agreed.

: Service Contracts: A service contract is normally created for service- oriented items – examples are annual service contracts, annual maintenance contracts

DUNNING PROCESS

DUNNING PROCESS

: What is dunning?

: Dunning is the process of notifying customer/vendor that an unpaid obligation has become past due.

: Dunning is correspondence involving credit control and interest calculation.

Dunning Business process

: Phone call are payment reminder.

: Dunning letters to customers.

: Legal letters to customer.

: Grace period.

:FORWARD CONTRACT

FORWARD CONTRACT: Contract between two parties to buy or sell an asset at a specified

future time at a price agreed upon today. This is in contract to a spot contract which is an agreement to buy or sell an asset today. The party agreeing to buy the underlying asset in the future assumes a long position and the party agreeing to sell the asset in the future assumes a short position. The price agreed upon is called the delivery price, which is equal to the forward price at the time the contract is entered into.

: Ex: If suppose X wants to buy a house a year from now. At the same time Y currently owns a $100,000 house that he wishes to sell a year from now. Both parties could enter into a forward contract with each other. Suppose that they both agree on the sale price in one year's time of $104,000 (more below on why the sale price should be this amount). Y and X have entered into a forward contract. X, because he is buying the underlying, is said to have entered a long forward contract. Conversely, Y will have the short forward contract.

: At the end of one year, suppose that the current market valuation of Y’s house is $110,000. X will make a profit of $6,000.