Sap ar dilip sadh

Think Tree Technologies, Inc.

Sales Cycle & Documents

• Sales is a component of the Sales & Distribution module thatsupports the sale, delivery, and billing of materialsand/or services to the customers of the organization.

• In keeping with the system’s Document Principle, the steps inthe Sales Cycle are represented by various documents, whichare produced in the Sales & Distribution and FinancialAccounting modules.

• Chapter Objectives

– Provide an overview of how the system supports an

integrated Sales Cycle and a description of the purpose

and functionality of each document created in the

system in support of the Sales Cycle.


Sales Order(SD)

Inquiry / QuotationCredit Check

Delivery Note(SD)

Authorization to Ship

Credit Check

Goods Issue(MM)

Credit Check

Inventory COGS

X X

FI

X

A/R Sales Revenue

Billing Document(SD)

Invoice Sent

X

FI

Receive Payment(FI)

A/R Cash

X X

17.1Sales Cycle


17.2 Sales Documents

InquiryQuotationSales OrderCredit & Debit Memo Requests


Inquiry

?

Customer Seller

Inquiry


Inquiry Quotation

Customer

Quotation


Price

QuantityDelivery

Dates

Sales Order

Sales Order


• Initiates Shipping Activities • Forms the basis for Goods Issue & Billing

Delivery Note

Delivery Note


Billing Due List

Delivery

OrderQuotation

Updated

Stock

Inventory COGS

X X

Goods Issue

GoodsIssue

Sales Order


Invoice

Customer

Delivery Note

BillingDocument X

A/R Sales Revenue

X

Accounting Document

Billing Document


Accts. Receivable Cash

Receipt of payment

Incoming Payment


Create Customer

Master Records

Display CustomerAccount Balances

IncomingPayment

Processing

CreditManagement

Display / ChangeCustomer Line Items

Dunning

FIAccounts Receivable (A/R)

17.3Accounts Receivable in the Sales Cycle


Sales Order(SD)

Inquiry / QuotationCredit Check

Delivery Note(SD)

Authorization to Ship

Credit Check

Goods Issue(MM)

Credit Check

Inventory COGS

X X

FI

X

A/R Sales Revenue

Billing Document(SD)

Invoice Sent

X

FI

Receive Payment(FI)

A/R Cash

X X

Sales Cycle


Sales Cycle & Documents Chapter Summary

Key Terms

– Sales Cycle

– Sales Documents

– Inquiry

– Quotation

– Sales Order


Sales Cycle & Documents Chapter Summary

Key Terms

– Shipping Documents

– Delivery Note

– Goods Issue

– Movement Type

– Billing Document


Chapter 18Automatic Account Assignment

• To ensure a real-time, integrated Sales Cycle, the systemcontains functionality which will automatically determinethe proper General Ledger Accounts to be posted towhen a Goods Issue and a Billing Document is created.


– Gain an understanding of the configuration used in

automatic account assignment for Accounting

Documents created in the Sales Cycle.


Goods Issue

Inventory COGS

X X

Account Assignment AreaAccount Assignment Area

Material Account Assignment Overview


$120

StockValue

$120 =Stock

Quantity

4 Piecesx

MaterialPrice

$30 / Piece

4 Pcs.$30 / Pc.

What is Valuation?


Valuation Level

Valuation Area is aPlant

Valuation Level isCompany Code

Selecting the Valuation Level


Valuation ClassRaw Material

Finished Product

Price ControlStandard or Moving

Average Price

1

2

3 PriceCurrent, Previous

Month, Previous Year, Future

Accounting Data in the Material Master


Case 1: Valuation Area = Company Code

ValuationGrouping

Code

0001

0002

0003

CompanyCode

0001

0002

0003

0004

Chart ofAccounts

GKR

IKR

Valuation Grouping Code


Case 2: Valuation Area = Plant

ValuationGrouping

Code

0001

0002

0003

CompanyCode

0001

0002

0003

0004

Chart ofAccounts

GKR

IKR

Valuation Area

0001

0002

0003

0004

0005

Valuation Grouping Code


Material TypeAccountCategoryReference

ValuationClass

FERT 0001 7900

3000

HALB

3010

HAWA 0002 3020

ROH1 0003 3030

3040

ROH2 3100

ROH3 0004 3200

Linking a Material Type to a Valuation Class


BSX - Inventory Posting

GBB - Offsetting Entry to the Stock Posting

Transaction / Event (Process) Keys


231000550000

81000 140000

Transaction Key(Process Key)

ValuationGrouping

Code

Chart ofAccounts

Account Grouping(Account Modifier)

ValuationClass

1

2

3

5

4

How Does the System Find the Relevant G/L Accounts?


Movement Type: 231Plant: CSPLMaterial: RES-A

Material RES-A Movement Type 231

ValuationGrouping Code

Chart ofAccounts

ValuationClass

Transaction Key G/L Acct - Dr. G/L Acct. - Cr.BSX 300000 300000GBB 191100 191100

Posting Strings:

ValueString

Plant CSPL

Performing a Simulation of the Account Assignment


Billing Document

X

A/R Sales

X

ACCOUNT ASSIGNMENT CRITERIAACCOUNT ASSIGNMENT CRITERIA

Revenue Account Assignment Overview


Accounting

Accounting

Release

Billing Document

Billing Document

�Posting Block

SD FI

Interface to Financial Accounting


Billing Document

Chart of Accounts

Sales Organization

Customer Account Assignment Group

Material Account Assignment Group

Account Key

G/L Account

Material Master Record

Payer Master Record

Company Code

Assigned to

Pricing Procedure

Price 100.00 ERLDiscount 10.00 ERS

Account Key

ERL = Revenue

ERS = Sales Deduction

Account Assignment Criteria in the Billing Document


Acct. Determination Procedure

KOFI

Condition Type: KOFI

Access Sequence: KOFI

Billing Document Type

1. Charts ofAccounts





SalesOrganization

SalesOrganization

SalesOrganization

SalesOrganization

SalesOrganization

Account Key

Account Key

Account Key

Account Key

CustomerAcct. Group

CustomerAcct. Group

MaterialAcct. Group

Records for Condition Type KOFINo valid record existsValid record exists (search ends)

Item 10

Price $10Discount (10%) $1

SalesDeduction

1

Sales Deduction

Account

MaterialAcct. Group

Specific

General

Condition Tables

Revenue Account Determination


Automatic Account Assignment Chapter Summary

Key Terms

– Valuation Area

– Valuation Class

– Valuation Grouping Code

– Account Category Reference

– Transaction / Event Key (Process Key)

– Account Modification code

– Account Determination Procedure


Automatic Account Assignment Chapter Summary

Key Terms

– Condition Type

– Access Sequence

– Condition Tables

– Account Assignment Group (Customer)

– Account Assignment Group (Material)

– Account Key


Chapter 19Credit Management

• Credit Management is the process of establishing customercredit limits, establishing credit checking policies andmonitoring Customers against those criteria. It is configured inboth the Financial Accounting (FI) and Sales & Distribution(SD) modules.


– Provide an understanding of how credit limits are set and

maintained for customers.

– Provide an understanding of the hierarchical relationships

between Credit Control Area, Company Code, and

Customer.

– Identify and understand the functionality of monitoring credit

limits for Customers using Automated Credit Checking in FI and

SD.


CustomerCustomerSales Rep.

CreditCheck

CustomerCredit Limits

• Accept Order• Accept Order /

Block Delivery• Refuse Order

Used to Set and Control Credit Limits for Customers

SalesOrder

CustomerCredit

Information

Check

Credit Management


Credit Control Area Credit Control Area

Client

PepsiCo.

CCAA

Company Code

123

Company Code

456

Customer A Customer ACustomer ACustomer B Customer C

Example:

ClientCredit

Control Area

CompanyCode

Customer

CCBB

Company Code

999

Credit Control Area


Step 1: Define a Credit Control Area

19.1Defining a Credit Control Area


19.1Defining a Credit Control Area

Step 2: Assign Company Codes to the Credit Control Area


CCAA < = $ 500,000.00CCCH < = $ 500,000.00

CCAA +CCCH < = $ 2,000,000.00

2 levels of credit limit:• Globally across all Credit Control Areas• Per Credit Control Area

Example:Customer A Global Limit: $2,000,000.00 Credit Control Area Limit: $500,000.00

PepsiCo.

Customer A Customer A

Client

CCAA

Credit Control Area

CCCH

Credit Control Area

123

Company Code

999

Company Code

19.2Assigning Credit Limits Per Customer


Maximum amountthat can be assigned

per Credit Control Area

Maximum sum amountthat can be assigned

across all CreditControl Areas

Highest limit alreadyassigned for an individual Credit

Control Area

Total limit alreadyassigned across allCredit Control Areas

Maintaining Credit Limits Per Customer


Postings: Increase these amountsClearings: Decrease these amounts

Special G/LTransactions such as down payment

Receivablesfrom sales

Open Sales Orders,

Deliveries andBilling Docs.

Total receivables,Special G/L Trans.

and outstandingorder value

Monitoring Credit Limits for Customer


19.3Credit Checking

A: WARNING MESSAGE

SALES ORDER TYPE

B: ERROR MESSAGE

C: WARNING MESSAGE WITH DELIVERY BLOCK

D: AUTOMATIC (AUTOMATED CREDIT CHECKING)

STATIC ONLY

STATIC or DYNAMIC

Check Credit Limit (Select One)


19.4Static Credit Check

+OPEN SALES DOCUMENTS

OPEN DELIVERY DOCUMENTS

OPEN BILLING DOCUMENTS

OPEN ITEMS (A/R)

+

+CREDIT

EXPOSURE


Dynamic Credit Check

DynamicComponent

Static Component

OPEN DELIVERY DOCUMENTS

OPEN BILLING DOCUMENTS

OPEN ITEMS (A/R)

OPEN SALES DOCUMENTWITHIN

HORIZON

+

++

Credit Exposure


– STATIC CHECK

– DYNAMIC CHECK

– ON BASIS OF MAXIMUM DOCUMENT VALUE

– WHEN CHANGES ARE MADE TO CRITICAL FIELDS

– ON DATE OF NEXT INTERNAL REVIEW

– ON BASIS OF OVERDUE OPEN ITEMS

– AGAINST HIGHEST DUNNING LEVEL

Credit Checks

– WARNING WITH BLOCK

– ERROR

System Reaction

– WARNING

19.5Automated Credit Checking Features


Credit Control Areas (CCA)

EURO EuropeCCCS North America

Risk Categories

RO1 High RiskRO2 Medium RiskRO3 Low Risk

Credit Representative Groups

001 Europe002 North America

Customer : 6

Credit Control Area : EURO

Risk Category : R02

CreditRepresentative Group : 001

Credit Limit : 10,000 USD

Customer Credit ManagementArea

Credit Representative

Part Func. Pers.No. MailKB 012 Jones

19.5 Automated Credit CheckingConfiguration in FI


01 Sales Order02 Delivery03 Goods Issue

Document Credit Groups

OR...

Sales Document Types= Automated

CheckD

ActiveTANAGN Yes

Item Categories

X

Factors influencing credit:

Credit + Risk + DocumentControl Category CreditArea Group

Automated Credit Checking Configuration in SD


Credit Account Order Credit Value Risk Status

Customer A 351 1000.00 Medium Dynamic ChkCustomer X 567 200.00 High Dynamic ChkCustomer Y 595 50000.00 Low Static Chk

Credit Control Area CCXXCredit Rep Group US

Release the order(s)

Blocked SD Orders

19.6Reviewing and Releasing Credit Holds


19.7 Risk Management

Risk Management

Payment Cards

Export Credit

Insurance

Letters of Credit

Credit Management

Manual Checks

Static/Dynamic

Checks+

Sales Order 101

Sold-to #6

Net value $1000

XYZ 10 500

ABC 20 500

Letter of Credit for customer 6

of $600

3. System performs a credit check against remaining $400 of the sales order.

2. The system determines that letters of credit are allowed and finds one for this customer valued at $600.

1. At sales order entry, the sytem determines what types of payment guarantees are allowed for the payer and document type.


A User Exit at the Header Level

Billing View of the Payer Master Record

The Sales Area of the transaction

Company Code of the Sales Organization

Order of checks for determining

the Credit Control Area

First

Last

19.8 Credit Control Area Determination Options


19.9 Early Warning List

Creates a report on customers who are likely to become critical

The Early Warning List derives its information from the A/R Summary. It is necessary to run the A/R Summary on a timely basis to ensure up to date information.

Management can use the results of these reports to determine a course of action on clients. Automatic actions can also be set in customizing.


SD Creating SD - Documents

SD Creating SD - Documents

FIFI

Report: RFCMCRCV

Non distributed systems:

CHECK

a) perfor-mance+

b)

Distributed systems:

CHECK

a)

b)perfor-mance?

A/R Summary

Creates

Actual Data

CHECK

Report:RFDKLI42

Report:RFDKLI42

via RFC

19.10 A/R Summary in distributed and non-distributed systems


Preliminary settings are done here.

19.11AR Summary

● It contains all creditinformation for an account incompact form

● Can be used for SD credit checks both in distributedand non-distributed creditmanagement

● Increases efficiency in non-distributed systems asrepeated read of open itemsis avoided


19.12 AR Summary - Aging Settings

A/R Summary aging settings in A/R

A/R Summary aging settings in SD


Credit Management Chapter Summary

Key Terms

– Credit Management

– Credit Control Area

– Credit Limit

– Automated Credit Checking

– Static Credit Checking

– Dynamic Credit Checking

– Risk Category


Credit Management Chapter Summary

Key Terms

– Document Credit Group

– Risk Management

– Early Warning List

– A/R Summary


Chapter 20Incoming Payment Processing

• The receipt of payment from a customer is the final step in theintegrated Sales Cycle. The system provides full functionalityfor processing customer payments, clearing open items inthe Customer Account and resolving any paymentdifferences.


– Provide an understanding of how the system processes incoming payments.

– Provide an understanding of how the system processes payment differences.

– Provide an understanding of Payment Advice

functionality and its uses.


20.1 Post Incoming Customer Payment

Mandatory Dates

Bank Account &Amount paid

Customer Account

Defaulted Information:

Document Type(for payment)

Account Type(for Customer)


Entering the Customer Payment

Parameters for Open ItemSelection


20.2.Selecting Open Items to Be Cleared

Activated Open Item

Entered & Assigned Amount


If a payment amount doesn’t match the open item amount, it can be processed as a partial payment or residual payment.

• Leaves original invoice intact (full amount)

• Credits the Customer Account for the payment amount

• No items are cleared

• Clears the original invoice

• Creates a new invoice for the remaining amount

• The new invoice has a new Document Date and

Baseline Date; although it is changeable

Partial Payment

Residual Payment

20.3.Partial Payment / Residual Payment


Structure:

HeaderDate Amount Currency

1/27/98 700 USD

Item 1Amount Cur. Doc. #

100 USD 123

Item 2Amount Cur. Doc. #

600 USD 999. . .

Match

Usually byDocumentNumber

Payments

Invoices

Documents:

Doc. # Amount Cur.

123 100 USD

456 500 DEM

789 200 USD

999 600 USD

627 235 SFR

20.4.Payment Advice


Customer:Receives GoodsSends Payment

Seller:Receives PaymentSends Goods

ExecutePayment Program

PaymentAdvice

ClearedDocuments

Generate Clear

Sending and Receiving Payment Advices


Types delivered with the system:

AccountStatement

EDI

Bank

Lockbox Manual

Types of Payment Advices


Payment DifferenceDetected

How to Handle the Difference:

Write off to a G/L Expense Account(Charge Off Indicator is set)

Or

Generation of a New Item(Charge Off Indicator is not set)

ReasonCode

20.5Automatic Handling of Payment Differences


Bank:

LockboxFile

(Format)

LockboxFile

(Format)

PaymentAdvice

Database

PaymentAdvice

Database

Checks

ClearedDocuments

BAI:Bank Administration Institute

A Payment Advice is created for each check.

20.6 Lockbox Processing


Key Reports:

RFEBLBT1: Generates pre-programmed test data (for internal use only)

RFEBLB00: Imports data into lockbox processing

RFEBLB20: BAI format processing

RFEBBU00: Post account statement / check deposit listing

Key Tables:

T049A: Destination and origin definition (“Who”)

T049B: Format definition (of EDI, BAI, etc.) (“How”)

T049C: Evaluation of Autocash Tapes(creation date and time) (output - results)

T049L: Link to House Bank table for Lockbox Master

Lockbox Processing


20.7.Interest Calculation

● The R/3 Interest Calculationprogram calculates and booksinterest on customer/vendoraccounts in arrears resulting fromitems that are not yet paid or werepaid too late.

● User definable correspondencefor the recipient is generatedspecifying the details ofthe transaction.

● Configuration options determinetiming and rates of interest.


Chapter 20 - Incoming Payment Processing Chapter Summary

Key Terms:

– Clearing

– Partial Payment

– Residual Payment

– Payment Advice

– Reason Code

– Lockbox Processing


Chapter 21Dunning

•Dunning is the process of notifying customers that an unpaid obligation has become past due.

•Chapter Objectives

– Understand the functionality and configuration of a

Dunning Procedure and how it is executed in the Dunning

Program.

– Understand the Organizational Structure of Dunning

Levels within a given Dunning Program and how

parameters can be set for each of them.

– Understand how to send dunning correspondence to

customers and vendors through Dunning Letters.

– Run the Dunning Program.


Organizational Structure related to Dunning:

ClientCLAA

Company CodeCCAA

Company CodeCCBB

Dunning AreaDA01

Dunning AreaDA01

Dunning AreaDA02

The Dunning Area is an optional unit in the Organizational Structure usedto group Customers / Vendors for dunning. Each Dunning Area can represent different dunning policies or Organizational Units responsible for dunning.

21.Dunning


21.1Dunning Run -Overview

Run dateIdentification

Status

Maintain ParametersParameters entered

Schedule dunning runDunning Run has finished

Change dunning noticesDunning data has been changed

Start dunning printoutPrinting of dunning notices has been terminated


The Dunning Procedure contains the configuration of a Dunning Program.

The Dunning Procedures can be tied to Dunning Areas or to aCustomer / Vendor master record.

Dunning Procedure Dunning Program

Configuration Execution

DunningLevels

MinimumAmounts

DunningCharges

DunningTexts

Basic Parameters of the Dunning Procedure

21.2.Dunning Program Configuration


21.2Assigning the Dunning Procedure in the Master Record

•Master Record•Company Code Data•Correspondence Tab


Frequency for running

Items that are overdue less or equal to the grace period willnot be dunned (works like abonus period)

Days in arrears after which a Dunning Notice will be sent

0 1 2 3 4 5 6 7 8 9 10 11 12

Grace Period Minimum Days in Arrears # Days in Arrears

21.2Configuring the Dunning Procedure


Grace Period: 4 DaysMinimum Days in Arrears: 8 Days

Due Amt. Status

1) -6 1,500 Not Overdue2) +3 350 Within Grace Period3) +6 800 Within Min. Days in Arrears4) +10 5,400 Overdue 10 Days

Result:

Items 3 and 4 will be dunned. You will dun the account forItem 3 because there is another item that is overdue more thanthe minimum days in arrears.

If Item 4 did not exist, then item 3 would not be dunned.

Items:

21.2.Selecting Open Items to be Dunned


21.2. Dunning Levels


Minimum Amounts define an overdue threshold of the total AccountBalance, which must be exceeded to reach a Dunning Level.

Dunning Level

• Minimum Amount

• Minimum Percentage

• Minimum Amount for Interest

Example:Total Account Balance: USD 25,000,00Configuration of Dunning Level 1: Min. Amount = USD 15.00 and Min. Percentage = 5%Dunning Balance Level 1: USD 500.00

Will be dunned? No, because USD 500.00 >= Min. Amount but USD 500.00 < Min. %

21.2Minimum Amounts


For each Dunning Level, it is possible to define an amount to be charged if the minimum amount for dunning is exceeded.

A Dunning Charge is used to cover the postage and handlingof Dunning Letters.

Dunning Level

Dunning Charge:Static amount to be charged

Dunning Charge %:Percentage to be applied tothe total of all overdue itemsin the Account to determinethe Dunning Charge

21.2.Dunning Charges


Dunning Level

Dunning Form

A form is set up using SAPScript and can beshared by more than one Dunning Level.

21.2.Dunning Texts


The Dunning Program examines the open items of

a Customer / Vendor and, if overdue items exist,

produces the appropriate notice.

Dunning Date

Documents Date

Company Code,

Range of Customer /

Vendor Numbers

21.3 Parameters for the dunning run


It’s possible to create an additional log to analyze

the dunning run.

A range of customer

and vendor accounts

has to be specified

21.3 Parameters for the dunning run


OverdueItem

OldLevel

New Level=

Old Level + 1

The Dunning Letter

21.4.Selecting the Dunning Level


Dunning can be started

at a specific date and time

or it can be started

immediately.

Dunning notices can be created

immediately after the dunning

run. If this parameter is set it

is no longer possible to change

the dunning proposal manually

or to delete it.

21.4. The dunning run


Dunning Block Reasons are used to block a Customer / Vendor or an item from being dunned.

The user specifies the Dunning Block Identification and a Description.

Dunning Keys are used to mark items that should not trigger a higherDunning Level.

The user specifies the Dunning Key Identification and the Maximum

Level that can be triggered.

21.4The dunning run


21.4. The dunning Run

Dunning run can be divide in to three steps:1. The program checks which accounts shall be considered in the dunning run

according to the parameters and configuration.

2. The system checks which line items are overdue in the selected accounts and

which dunning level should be applied.

3. The system checks whether payments have to be dunned for an account and

,if so,which dunning level should be used.


21.5. Editing the dunning proposal

Accounting Overview

Dunning data

Dunning data

Dunning data

AccountClerkDunning AreaDunning LevelDunn Block

Dunning items

Account

Items

Item 1

Dunning LevelDunn Block

Item2….

Document

Items

Item 1

Customer Correspondence

Company code

Dunning data

Correspondence


21.6. Printing dunning notices

• A payment coupon may be attachedto a dunning letter or accountstatement.

• Payment coupons can also beprinted in a separate spool ondedicated forms.

This image cannot currently be displayed.


21.6Cross Company Code Dunning

This feature enables users to create one

dunning notice that covers business partners

that exist in different company codes.

Likewise, data that would normally be spread

over several company codes (and hence

several correspondence letters) can now be

grouped into one correspondence letter.


Pre-DefinedAction Trigger

Correspondence

Sending Correspondence to Customers / Vendors


Chapter 21 - DunningChapter Summary

Key Terms:

– Dunning

– Dunning Area

– Dunning Procedure

– Grace Period

– Dunning Level

– Minimum Amount

– Dunning Charge


Chapter 21 - DunningChapter Summary

Key Terms:

– Dunning Letter

– Dunning Program

– Dunning Block Reason

– Dunning Keys

Date post:	11-Nov-2014
Category:	Technology
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