SD Business Process

Nissei Sangyo S01-Condition Records.
doc – Business Procedure Overview
Condition Records
Business Procedure Overview:

Condition Records are used to perform the day-to-day pricing activities during sales order processes. NS will be
using condition records to store and retrieve pricing data in the system. All the pricing elements of NS daily
business - the prices, discounts, and surcharges for freight and taxes - that NS wants to use for automatic pricing
must be stored in the system as condition records. NS may define as many condition records as she wants for the
different pricing elements for any validity period.
The condition records created for all the pricing elements are taken into account during automatic pricing. During
document processing, the system transfers data from the condition records and determines the amounts for
individual pricing elements (prices, discounts and surcharges) and the final amount for the sales document.
When
If a new pricing element arises or the need to amend an existing pricing element.
How
Step 1: Capture Info
Chris to advice on the various pricing elements required by NS.
Step 2: Create Condition Record

Create condition record.
Responsibility
Admin Section
Last changed on: Version 1.0

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Nissei Sangyo S01-Condition Records.doc – Business Procedure Overview
Business Procedure Flow.
Start
Condition Records requires

update
Update Condition Record
End

Nissei Sangyo S01-Condition Records.doc – Business Procedure Overview
Special Considerations
SAP Settings
See Also

Nissei Sangyo S02-Customer-Material Info Records.doc – Business Procedure Overview
Customer-Material Info Records
What
Every company is structured in a certain way. In order to work with the SAP System NS company structure has
to be represented in the system. This is done with the help of various organizational structures.
Products are sold or sent to business partners or a service are performed for them and data about the products
and services as well as about the business partners is the basis for sales processing. Therefore, before sales
processing begins, it requires that the master data has been stored in the system.
If a customer manages a material with a number that differs from the one NS uses, a customer-material
information record is created.
The customer material information records stores all the data on a material defined for one specific customer. This
data includes
• the customer-specific material number
• the customer-specific material description
• customer-specific data on deliveries and delivery tolerances
One of the main functions of this info record is that items can be entered by specifying the material number used
by the customer during an order entry process. A customer-material info record is also essential for EDI processes.
When
If a new customer-material info arises or the need to amend an existing customer-material info element.
How
Step 1: Capture Info
Chris to advice on how information is being derived from the customer – processes, documents etc.
Step 2: Create Customer-Material Info Records

Create a customer-material information record.
Responsibility
Sales Section
Admin Section

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Start
Customer-Material Info
Record needs updating
Update Customer-Material
Info Record
End

Customers who maintain difference material numbers have to provide these data to NS.
SAP Settings
• Rounding profile
• Unit of measure
See Also
• Material Master
• Customer Master

Nissei Sangyo S03-Demand Forecast.doc – Business Procedure Overview
Demand Forecast
What
Demand forecasting is a tool to drive materials planning and purchasing. Based on future customer demand, the
sales section enters the demand-forecast figures for each customer and material into the SAP system. Forecasting
figures in the current month (month-n) is to fulfill future orders or confirmed orders next month (month n+1). The
required demand in the current month to be transferred to Demand Management is total of confirmed sales order
in the current month plus forecast figures in the current month, plus adjusted figures in the current month. After
MRP run, purchase quantity is the required demand minus stock on hand minus open purchase order.
This process is used for the department that keeps stocks in the warehouse (e.g. Semiconductor Dept).
When
Sales section will enter the demand forecast beginning of the month.
How
Step 1: Demand Forecast

Based on the future customer demand, sales section will do forecasting for six month ahead. Forecasting figures
in month (n) is to fulfill future orders or confirmed orders in month (n+1), and the sales section may add adjusted
forecast based on customer’s sales history.
Step 2: Review the Demand Forecast

The purchasing section reviews the Demand Forecast and may change the adjusted forecast.
Step 3: Released for Material Planning

Purchasing section approves and releases the Demand Forecast to Demand Management. The Demand Forecast
is then used to generate the Purchase Requisitions after an MRP run.
Responsibility
Sales section
Purchasing section

04/19/06 S03-Demand Forecast.doc Page: 1
Business Procedure Flow:
Start
Demand Forecast
Review the Demand

Forecast
Released for
Material Planning
End
For each individual material, forecast figure in month (n) is calculated based on forecast factor (X) that is assigned
to a material group multiplied by sales order in month (n+1). This forecast factor X is determined manually, it
ranges from 0% to 100%.
Adjusted quantity is determined based on customer’s history, therefore the sales section and purchasing section
have to monitor the adjusted forecast quantity in order to maintain the accuracy of The Demand Forecast.
The Demand Forecast only applies for Stock Order processing. For unplanned order (e.g. Direct Order and Stock
Order with PO), individual PO will be created and dedicated for a particular sales order, and it would not be part of
MRP processing.
The following table is calculation table for The Demand Forecast.
Demand Forecast N n+1 n+2 n+3 n+4 n+5

Open Sales Order A1 A2 A3 A4 A5 A6
Forecast B1=X*A2 B2=X*A3 B3=X*A4 B4=X*A5 B6=X*A6
Adjusted Forecast C1 C2 C3 C4 C5 C6
Required Demand R1=A1+B1+C1 R2=A2+B2+C2 R3=A3+B3+C3 R4=A4+B4+C4 R5=A5+B5+C5 R6=A6+C6
MRP n n+1 n+2 n+3 n+4 n+5

Stock S1 S2=P1+S1-A1 S3=P2+S2-A2 S4=P3+S3-A3 S5=P4+S4-A4 S6=P5+S5-A5
PO P1=R1-S1 P2=R2-S2 P3=R3-S3 P4=R4-S4 P5=R5-S5 P6=R6-S6

SAP Settings
A new info structure is to be created. Customer, material and plant are to be defined as characteristics, and open
sales order, forecast, adjusted forecast and required demand are to be defined as key figures.
• Maintain Self-Defined Information Structures. It is used for flexible planning.
• Activate the new information structure for all sales transactions.
• Set parameters for info structures and key figures. Planning type with macro will be used.
• Maintain planning hierarchy.
See Also

Nissei Sangyo S04-Stock Order.doc – Business Procedure Overview
Stock Order
What
Stock Order process is a very straightforward process where NS receives a request from a customer and NS
fulfills this order by delivering a defined quantity of products or provide a service at a certain defined time.
When
The Stock Order process begins when customer raises an order for products that NS has in the stock.
How
Step 1: Customer ask for quotation

If the customer did not request for a quotation then proceed to step 4,
If a quotation is requested then proceed to step 2.
Step 2: Create quotation

A quotation presents the customer with a legally binding offer for delivering a product or providing a service within
certain fixed conditions. This offer is legally binding for the company within a specified time period.
Sales section creates quotation in the system by entering all required information into SAP system. Quotation will
be printed for checking and approval process.
Step 3: Approved Quotation

Customer is satisfied with the quotation. Go to step 4.
Step 4: Customer raises an order

A customer raises a Purchase Order to Nissei Sangyo.
Step 5: Check terms and conditions

Sales section checks all information printed on customer’s original Purchase Order. If all terms and conditions are
agreed, then proceed to apply for Exchange Booking when the foreign trade amount is S$10,000 and above or
equivalent.
Step 6: Create sales order

Sales section creates sales order in the system by entering all required information into SAP system. Sales order
will be printed for checking and approval process. System will do a credit checking. If the credit limit is exceeded,
a warning message will appear. Sales order will be printed for checking and approval process.
Step 7: Check and approve trade

If the order amount is S$100,000 or less, or order reduction is S$30,000 or less, or loss amount is S$3,000 or less,
approval can be obtained from Sales Manager or the designated Sales Personnel. Otherwise, all approval must be
obtained from the Administration Section. Other level of approval is listed below:-
Contents Sales Admin Admin Admin Managing

Manager Executive Assistant Manager Director
Manager
Sales Order
S$ 0 ~ S$ 100 000 Θ
S$100 001 ~ S$ 1 000 000 O Θ
S$1 000 001 ~ S$ 2 000 000 O O Θ
S$2 000 001 ~ S$ 3 000 000 O O O Θ

04/19/06 S04-Stock Order.doc Page: 1
S$3 000 001 ~ O O O O Θ
Miteihin
S$0 ~ S$ 200 000 O O O Θ
S$ 200 001 ~ O O O O Θ
Loss
S$0 ~ S$ 3000 Θ
S$3001 ~ S$ 5000 O O Θ
S$5001 ~ S$ 10 000 O O O Θ
S$10 001 ~ O O O O Θ
Sales Reduction
S$0 ~ S$ 30 000 Θ
S$30 001 ~ S$ 50 000 O O Θ
S$50 001 ~ S$ 100 000 O O O Θ
S$100 001 ~ O O O O Θ
When Admin section receives all relevant documents from the sales section, Admin section it to check and
confirm the sales order. If the order is rejected, all documents concerned are to return to the sales section.
Step 8: Create delivery document

If the credit limit is exceeded, system will block delivery and post goods issue. Credit management has to be
carried out by the authorized personnel before delivery and post goods issue can be done.
When shipment is done, delivery note to customer will be generated referring to sales order. In the case of export
sales, the Traffic Center will verify the LCs and shipment documents (ie. DO, packing list and export invoice)
before approving the delivery. The system will also allow changes to some statistical data in the export sales
documents (ie. material description etc.)
Step 9: Create billing document

After the goods have been delivered, all necessary documents are to be submitted to Admin section for invoicing.
When Admin section receives request for invoicing, Admin section is to ensure all relevant documents attached
are checked against the request must be correct. When checking is completed, Admin creates billing document
referring to delivery document.
Responsibility
Sales Section
Admin Section

Start
Quotation No Customer raises an order

Needed?
Yes
Check terms and

Create/Revise Quotation conditions
Yes
Quotation Create Sales Order

Approve?
Yes
No
Need to revise Check and approve

quotation sales order
Create Delivery Document
Create Billing Document
No
End

If a customer manages a material with a number that differs from the one NS uses, a customer-material
information record is created.
During order entry, items can be entered by specifying the material number used by the customer. We also enter a
customer material number in the order view of the sales order. We can then use both material numbers during the
order entry, the material number NS uses or the one defined by the customer, because the system can carry out
allocation automatically.
SAP Settings
• Pricing:
• Basic price (PR00) will be mandatory
• Output tax (MWST) will be mandatory
• Commissions
• Special Discount
• Freight
• Trade Cost
• Mithei-Hin
• Warranty
• Service
• Bank Charges
• Insurance
• Duties
• Revenue Account Determination

• Availability Check and Transfer of Requirements
• Output Control
• Materials Determination
• Partner Determination
• Text Control
• User Status
• Log of Incomplete Items
• Credit Management/Risk Management
• Sales Document Header
Doc Type Description Comments

OR Standard Order
• Sales Document Number Ranges
Doc Type Number Ranges Comments

OR ???
• Sales Copy Control

• Delivery Document

LF Standard Delivery
• Delivery Document Number Ranges

LF ???
• Delivery Copy Control

• Billing Document


F2 Invoice
• Billing Document Number Ranges

F2 ???
• Billing Copy Control
See Also
a) Stock Order with PO
b) Contract Stock Order
c) Returns Stock Order
d) Consignment Fill-Up Stock Order
e) Consignment Pick-up Stock Order
f) Consignment Issue Stock Order
g) Inter Company Stock Order
h) Perform Credit Management

Nissei Sangyo S05-Stock Order with PO.doc – Business Procedure Overview
Stock Order with PO
What
Stock Order with PO process is similar to Stock Order process where NS receives a request from a customer and
NS fulfills this order by delivering a defined quantity of products or provides a service at a certain defined time.
The difference is that NS does not have enough stock to cater for this order therefore there is a need to purchase
it from vendor. Vendor will deliver it to NS and then NS will deliver to the customer.
When
The Stock Order with PO process begins when customer raises an order for products with NS and NS does not
have enough stock on hand for the particular order.
How

A quotation presents the customer with a legally binding offer for delivering a product or providing a service within
certain fixed conditions. This offer is legally binding for the company within a specified time period.

If customer is not happy with the quotation the customer may request for the quotation to be revised.

A customer raises a Purchase Order to NS.

equivalent.

will be printed for checking and approval process. System will do a credit checking. If the credit limit is exceeded,
system will prompt a message. Sales order will be printed for checking and approval process.


04/19/06 S05-Stock Order with PO.doc Page: 1

Manager
Sales Order
S$ 0 ~ S$ 100 000 Θ
S$100 001 ~ S$ 1 000 000 O Θ
S$1 000 001 ~ S$ 2 000 000 O O Θ
S$2 000 001 ~ S$ 3 000 000 O O O Θ
S$3 000 001 ~ O O O O Θ
Miteihin
S$0 ~ S$ 200 000 O O O Θ
S$ 200 001 ~ O O O O Θ
Loss
S$0 ~ S$ 3000 Θ
S$3001 ~ S$ 5000 O O Θ
S$5001 ~ S$ 10 000 O O O Θ
S$10 001 ~ O O O O Θ
Sales Reduction
S$0 ~ S$ 30 000 Θ
S$30 001 ~ S$ 50 000 O O Θ
S$50 001 ~ S$ 100 000 O O O Θ
S$100 001 ~ O O O O Θ
Step 8: Initiate Purchase Requisition (PR)

Once Admin section has generated the sales order, the system will automatically initiate a purchase requisition in
the system.
Step 9: Raise Purchase Order (PO)

Once the approval is obtained, purchase order is to be created. For more information, refer to the Purchase
Order Processing Business Procedure .
All printed official purchase order and sales confirmation (if any) must be signed by Sales Manager or his
designated person. Sales section is to type in case mark(s) onto the purchase order if required, or sales
confirmation if required.
Step 10:Goods Receipt (GR)

NS performs a goods receipt process when vendor delivers goods to the customer. For more information, refer to
the Goods Receipt Business Procedure .
Step 11:Invoice Verification (IR)

The sales administration posts the supplier invoice into the system. For more information, refer to the Invoice
Verification Business Procedure .

before approving the delivery. The system will also allow changes to some statistical data in the export sales
documents (ie. material description etc.)


referring to delivery document.
Responsibility
Sales Section
Admin Section

Start
Quotation No Customer raises

Needed?
an order
Yes
Check terms and

Create/Revise Quotation conditions
Yes
Quotation
Approve? Create Sales Order
Yes
No
Need to revise Check and approve

quotation sales order
Initiate Purchase
Requisition
Create
Purchase Order
Goods Receipt
Verify supplier invoice
Create
Delivery Document
Create Billing
End
Document

In SAP, Stock Order with PO is called Individual Purchase Orders.
During sales order entry, the system automatically creates a purchase requisition item. The purchasing department
creates a purchase order based on the requisition and the supplier ships the goods directly to NS (unlike third party
order processing, where the supplier ships directly to the customer). NS then ship the goods to the customer.
While the goods are part of NS inventory, NS manage them as part of the sales order stock. Sales order stock
consists of stock that is assigned to specific sales orders and cannot be used for other purposes.
SAP Settings
• Item category TAB will assigned to item category group NORM.
• For approval process, user status in the sales order will be configured to meet the requirement.
• Settings in Customizing for billing document copying control at item level if we want the cost for the billing
document to be taken from the supplier invoice or purchase order, and not the valuation segment in the
material master. The quantity indicator in the billing document’s document flow then controls where the cost
comes from.
• If we activate F in the Billing quantity field, the value is calculated from the incoming invoice and copied to
the VPRS condition. This assumes that the customer billing document can’t be created until the supplier
invoice has been posted, checked by copying requirement 004.
• If we activate F in the Billing quantity field, the value is calculated from the incoming invoice and copied to
the VPRS condition. Goods receipt for customer purchase orders is not normally valuated and the value
from the purchase order is used as the cost.
• Other settings will be the same like stock order process.
See Also
a) Stock Order
b) Contract Stock Order

Nissei Sangyo S06-Contract Stock Order.doc – Business Procedure Overview
Contract Stock Order
What
Contract Stock Order is a process where NS fulfills the customer contracts, an outline customer agreement
showing the sales materials or services that are to be sold within a certain time period.
When
The Contract Stock Order process begins when NS and the customer agree upon an outline agreement for sale of
products or services. There after, customer fulfills this contract by placing sales order to NS.
How
Step 1: Customer raises outline agreement
NS and the customer agree upon an outline agreement for sale of products and services.
Step 2: Create Contracts

Sales section creates sales contract in the system by entering all required information into SAP system. The type
of Sales Contract available in the SAP system that will be used in NS business environment typically is
• Quantity Contracts
A quantity contract is an agreement that NS’s customer will order a certain quantity of a product from NS
during a specified period. The contract contains basic quantity and price information, but does not specify
delivery dates or quantities.
Step 3: Customer raise order

In the Contract Stock Order process, the customer fulfills the contract by placing sales order to NS.

Sales section checks all information printed on customer’s original Sales Order. If all terms and conditions are
equivalent.


Manager
Sales Order
S$ 0 ~ S$ 100 000 Θ
S$100 001 ~ S$ 1 000 000 O Θ
S$1 000 001 ~ S$ 2 000 000 O O Θ
S$2 000 001 ~ S$ 3 000 000 O O O Θ
S$3 000 001 ~ O O O O Θ
Miteihin
S$0 ~ S$ 200 000 O O O Θ
S$ 200 001 ~ O O O O Θ
Loss
S$0 ~ S$ 3000 Θ

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S$3001 ~ S$ 5000 O O Θ
S$5001 ~ S$ 10 000 O O O Θ
S$10 001 ~ O O O O Θ
Sales Reduction
S$0 ~ S$ 30 000 Θ
S$30 001 ~ S$ 50 000 O O Θ
S$50 001 ~ S$ 100 000 O O O Θ
S$100 001 ~ O O O O Θ

Once Admin section has approved and authorized the order, Admin section is to create a sales order, hereby
referred to as release order in the SAP system for the particular sales contract. This is done in the SAP system by
using the copy with reference function. The release order is created by copying the data from the sales contract
created earlier on by the Sales section.
System will do a credit checking. If the credit limit is exceeded, system will prompt a warning message. Sales
order will be printed for checking and approval process.

When shipment is done, delivery note to customer will be generated referring to the release order. In the case of
export sales, the Traffic Center will verify the LCs and shipment documents (ie. DO, packing list and export
invoice) before approving the delivery. The system will also allow changes to some statistical data in the export
sales documents (ie. material description etc.)

are checked against the request and must be correct. When checking is completed, Admin creates billing
document referring to the delivery document.
Responsibility
Sales Section
Admin Section

Start
Customer raise outline

agreement
Create Contract
Customer raise order
Check Terms & Conditions
Check & Approve Trade
Create Sales Order
End

When we create a release order, we refer to the relevant contract, and the system automatically updates the
released quantities in the contract.
When we create a release order for a contract, we enter the number of the contract and the name of the partner
who is requesting the goods. The system then checks if the business partner is authorized to release against the
contract.
We can define authorized sold-to parties (AA) and additional ship-to parties (AW) in the customer master record.
When we create a contract for the customer, these partners are proposed for selection.
SAP Settings
• If the partner has the partner function AG (sold-to party) or AA (sold-to party for release order) in the contract,
the system accepts the partner as the sold-to party for the release order.
• If the contract contains a WE (ship-to party) and several AWs (ship-to party for release order), the system lists
the possible ship-to parties in a dialog box. We select the appropriate ship-to party for the release order.
• We activate the partner authorization check in the Customizing activity ‘Define Sales Document Types’.
• Partner determination procedure KAB (partners in contract) contains the partner functions AA and AW. We
must assign this procedure to the sales document types for which the partner authorization check is relevant.
We make this assignment in the Customizing activity ‘Define and assign partner determination procedures’.
• In the standard R/3 System, the partner releasing against the contract and the ship-to party, which you select,
are copied into the release order. If we want to control which partners are copied into the release order, we can
define a copying routine for the relevant document types in the Customizing activity ‘Maintain Copying Control
for Sales Documents’. For example, we can specify that only the sold-to party releasing against the contract is
copied into the release order and the other partners are determined from the customer master record of the
sold-to party.
• User status is to be configured to cater approval process in the sales order.
• Contract Document

QC Quantity Contract
• Contract Document Number Ranges

QC ???
See Also
a) Stock Order
b) Stock Order with PO

Nissei Sangyo S07-Returns Stock Order.doc – Business Procedure Overview
Returns Stock Order
What
When customers who purchases through stock order, returns the goods, a Returns Stock Order process is
activated once the returned goods are checked and the return approved.
When
The returns stock order process begins when customer returns the goods.
How
Step 1: Customer returns goods
Customer returns goods to NS.
Step 2: Approve Returns

When customer does a return based on a complaint, NS:
• Post the goods back to warehouse for checking
• And then, implement one of the following activities:
• Approve the return and carry on with subsequent process of issuing a credit memo with reference
to the return
• Approve the return, and implement a free of charge subsequent delivery based on the return
• Reject the return

Sales section creates return sales order in the system by entering all required information into SAP system.
System will do credit checking. If the credit limit is exceeded the maximum limit allowed, system will block the
sales order for further transaction. Sales order will be printed for checking and approval process.

A delivery (returns delivery – post goods receipt) with reference to the return is created. The goods issue posted
for the return delivery matches the goods receipt to your own stock.

After the goods have been receipt, all necessary documents are to be submitted to Admin section for invoicing.
are checked against the request must be correct. When checking is completed, Admin creates billing document –
credit memo referring to sales order.
Responsibility
Sales Section
Admin Section

04/19/06 S07-Returns Stock Order.doc Page: 1
Start
Customer returns goods to

NS
Check and Approve Return
Create Sales Order
End

We enter a return in the system if the customer returns damaged goods, or goods that had been delivered for sale
on approval.
The return causes the system to:
• Register the receipt of goods using a returns delivery, and post the goods to stock (for example, blocked
stock).
• Create a credit memo, once we have checked the goods and approved the complaint.
SAP Settings
• Copying control for sales document, delivery document, and billing document.

RE Returns
• Number Ranges

RE ???
See Also
a) Stock Order
c) Contract Stock Order

Nissei Sangyo S08-Consignment Fill-up Stock Order.doc – Business Procedure Overview
Consignment Fill-up Stock Order
What
Consignment Fill-up Stock Order is a process used to supplement the customer’s consignment stock where goods
are being delivered by NS to the customer’s location and these goods are stored at the customer location but
which are owned by NS. The customer is not obliged to pay for these goods until they remove them from
consignment stock. Otherwise, the customer can usually return consignment good which are not required.
Consignment processing offers the participating partners several advantages. Customers store the consignment
goods at their own warehouses. The customer can access the goods in the consignment warehouse at any time.
They are only billed for the goods when they are removed from the warehouse and only for the actual quantity
taken.
Consignment stock in this process is :-
• Managed separately from the rest of the stock to allow easier tracking of stock stored at the customer
location
• Managed separately for each customer
When
The Consignment Fill-Up Stock Order with Cost process begins when NS and the customer agree upon an outline
agreement for consignment of products or services. There after, this process is used when there is a need to
supplement the customer’s consignment stock.
How
NS and the customer agree upon an outline agreement for consignment of products and services. When the need
arises to supplement the customer’s consignment stock.

Sales section creates consignment fill-up stock order sales order in the system by entering all required information
into SAP system. System will do a credit checking. If the credit limit is exceeded, a warning message will appear.
Sales order will be printed for checking and approval process.

If the fill-up order amount is S$100,000 or less, or order reduction is S$30,000 or less, or loss amount is S$3,000
or less, approval can be obtained from Sales Manager or the designated Sales Personnel. Otherwise, all approval
must be obtained from the Administration Section. Other level of approval is listed below:-

Manager
Sales Order
S$ 0 ~ S$ 100 000 Θ
S$100 001 ~ S$ 1 000 000 O Θ
S$1 000 001 ~ S$ 2 000 000 O O Θ
S$2 000 001 ~ S$ 3 000 000 O O O Θ
S$3 000 001 ~ O O O O Θ
Miteihin
S$0 ~ S$ 200 000 O O O Θ
S$ 200 001 ~ O O O O Θ

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Loss
S$0 ~ S$ 3000 Θ
S$3001 ~ S$ 5000 O O Θ
S$5001 ~ S$ 10 000 O O O Θ
S$10 001 ~ O O O O Θ
Sales Reduction
S$0 ~ S$ 30 000 Θ
S$30 001 ~ S$ 50 000 O O Θ
S$50 001 ~ S$ 100 000 O O O Θ
S$100 001 ~ O O O O Θ
confirm the fill-up sales order. If the fill-up order is rejected, all documents concerned are to return to the sales
section.

When shipment is done through air or sea, the airway bill number or the bill of lading number will be used to serve
as the delivery note to customer. When shipment is done through land, delivery note to customer will be generated
referring to the fill-up sales order.
When delivery note to customer is needed it will be generated referring to the fill-up sales order.
In the case of export sales, the Traffic Center will verify the LCs and shipment documents (ie. DO, packing list and
export invoice) before approving the delivery. The system will also allow changes to some statistical data in the
export sales documents (ie. material description etc.)
The underlying goods movement type is a stock transfer. This ensures that when goods issue is posted,
consignment special stock is created for the customer concerned. If special stock of this kind already exists in the
delivering plant for this customer, the goods are posted to this special stock.
Responsibility
Sales Section
Admin Section

Start
Customer raises outline

agreement
Create Sales Order
Create
Delivery Document
End

Goods issue of the appropriate stock is posted from the unrestricted-use stock to consignment stock (special
stock). When we ship consignment stock to the customer, we record the transaction by creating a consignment fill-
up order (order type KB). As a result, the system carries out the following actions:
• If special stock does not yet exist in our inventory for the customer (or special stock partner), the system
creates it when goods issue is posted.
• The relevant quantity is removed from regular inventory in our plant and is added to the special stock for the
customer. The total valuated stock for the plant remains the same.
• The transaction is not relevant for pricing since the consignment stock remains the property of our company.
SAP Settings
Inventory Management Using the Special Stock Partner
If we want to process our consignment goods using a special stock partner, proceed as follows:
1. Create a customer master record for the special stock partner (account groups 0001 and DEBI are defined
for this purpose in the standard system).
2. Enter the special stock partner in the relevant customer master record on the partner screen using the
partner function SB.
When we create an order for this customer, the system automatically proposes the partner function SB in the
document header and the document items. Consignment goods, which have been entered in a consignment fill-up,
are always posted to the stock of the special stock partner when goods issue is carried out. We can also enter the
partner function SB manually in the document header or in the relevant items if a special stock partner is required
and is not proposed from the customer master record. If a special stock partner does not exist in the document
header, inventory management is carried out using the sold-to party.

KB Consignment Fill-Up
• Number Ranges

KB ???
• Other settings will be the same like stock order processing.
See Also
a) Stock Order
d) Returns Stock Order

Nissei Sangyo S09-Consignment Pick-Up Stock Order.doc – Business Procedure Overview
Consignment Pick-Up Stock Order
What
Any consignment stock order goods stored at the customer’s warehouse that haven’t been used can be re-posted
to NS company’s warehouse with a consignment stock order pick-up.
If the customer returns consignment stock order stock to NS, NS records the transaction in the system by creating
a consignment stock order pick-up sales order . As a result, the system carries out the following actions:
• When goods issue is posted, the relevant quantity is deducted from the customer’s special stock and is
added back into NS regular stock at the plant where the goods are returned. NS total valuated stock
remains the same since the returned stock was regarded as part of NS own inventory even while it was at
the customer’s premises.
• This transaction is not relevant for billing.
When
The Consignment Pick-Up Stock Order process begins when the customer returns consignment stock order stock
to NS.
How
Customer returns consignment stock to NS.
Step 2: Create Sales Order

Sales section creates consignment pick-up stock order sales order in the system by entering all required
information into SAP system.
Step 3: Create Delivery Document

Create a delivery document as the subsequent document for this consignment pick-up stock order sale order and,
post goods receipt. The good issue posting which initiates a transfer posting from the customer’s special stock to
NS plant stock completes the transaction.
Responsibility
Sales Section
Admin Section

04/19/06 S09-Consignment Pick-Up Stock Order.doc Page: 1
Start
Customer returns goods
Create Sales Order
End

Any consignment goods stored at the customer’s warehouse that haven’t been used can be re-posted to our
company’s warehouse with a consignment pick-up.
If the customer returns consignment stock to NS, NS record the transaction in the system by creating a
consignment pick-up order (order type KA). As a result, the system carries out the following actions:
• When goods issue is posted, the relevant quantity is deducted from the customer’s special stock and is added
back into our regular stock at the plant where the goods are returned. Our total valuated stock remains the
same since the returned stock was regarded as part of our own inventory even while it was at the customer’s
premises.
SAP Settings

KA Consignment Pick-Up
• Number Ranges

KA ???
• Other settings will be the same like stock order processing.
See Also
a) Stock Order
e) Consignment Fill-Up Stock Order

Nissei Sangyo S10-Consignment Issue Stock Order.doc – Business Procedure Overview
Consignment Issue Stock Order
What
Consignment Issue is a subsequent transaction for processing consignment stock in the SAP system and the same
applies in the case of NS business environment for Consignment Stock Order process, when the customer uses
the consigned goods.
Consignment issue enables the customer to take consignment goods from the special stock for their use.
Consignment issue involves removing the goods from the special stock and making it the property of the
customer.
When the customer removes consignment stock to use, this transaction will be recorded in the system by creating
a consignment issue order. As a result, the system carries out the following actions:
• When goods issue is posted, the relevant quantity is deducted from both the customer’s special stock and
NS own total valuated stock.
• The transaction is relevant for pricing since the goods now become the property of the customer.
When
The Consignment Issue Stock Order process begins when the customer removes consignment stock to use.
How
Step 1: Customer raises Purchase Order (PO)
Customer raises a PO to NS when the customer removes consignment stock to use.

Sales section creates consignment issue stock order sales order in the system by entering all required information
into SAP system.

Create a delivery as the subsequent document for this consignment issue sales order and, after picking has been
completed successfully, post goods issue. The goods are then reduced by the relevant quantity in the special stock
assigned to the customer. This goods issue also reduces the total stock in NS. Note that, in this step it is optional
for NS to print out the delivery document. This document is for internal usage only.
Step 4: Create Billing

This transaction is relevant for pricing since the goods now become the property of the customer. Invoice the
delivery document issuing the consignment goods. This invoice will then be attached together with the delivery
document generated from the consignment fill-up process and send to the customer.
Responsibility
Sales Section
Admin Section

04/19/06 S10-Consignment Issue Stock Order.doc Page: 1
Start
Customer raise PO to NS
Create Sales Order
Check and
Approve Sales Order
Create Invoice
End

When the customer removes consignment stock to use or sell, we record the transaction in the system by creating
a consignment issue order (order type KE). As a result, the system carries out the following actions:
our own total valuated stock.
SAP Settings

KE Consignment Issue
• Number Ranges

KE ???
• Other settings are the same like stock order processing.
See Also
a) Stock Order
f) Consignment Pick-up Stock Order

Nissei Sangyo Sale of Machine/Scientific Instrument – Business Procedure Overview
Sale of Machine/Scientific Instrument
What
Prior to this process, a Consignment Fill-up is done (please refer to the Consignment Fill-up Stock Order BPP).
Subsequently, the customer uses this machine but the machine will still remain the property of NS. NS gives the
customer a trial period of six months to use this piece of machine. Before this six months period is up the
customer may return the machine through a consignment pick-up process (please refer to the Consignment Pick-
up Stock Order BPP). When the trial period is up, the machine will be considered sold to the customer. Once the
machine is sold to the customer, NS will do a consignment pick-up process (please refer to the Consignment Pick-
up Stock Order BPP) and then followed by a Stock Order process (please refer to the Stock Order BPP).
When
The Consignment Issue for Machine process begins when the customer requests to purchase a piece of machine.
How
Step 1: Consignment Fill-up Process
(Please refer to the Consignment Fill-up Stock Order BPP)
Step 2: Consignment Pick-up Process

(Please refer to the Consignment Pick-up Stock Order BPP)
Step 3: Stock Order Process

(Please refer to the Stock Order BPP)
Responsibility
Sales Section
Admin Section

04/19/06 S11-Sales of Machine.doc Page: 1
Please refer to the respective Business Procedure Flow for

a) Consignment Fill-Up Stock Order
b) Consignment Pick-Up Stock Order
c) Debit/Credit Memo Processing
d) Stock Order

SAP Settings
See Also
f) Consignment Pick-Up Stock Order
g) Debit/Credit Memo Processing
h) Stock Order

Nissei Sangyo S12-Inter Company Stock Order.doc – Business Procedure Overview
Inter Company Stock Order
What
Inter company business processing describes business transactions which take place between two companies
(company codes) belonging to one organization.
In the case of Inter Company Stock Order, it is the transfer of stock from one plant to another where the plants
belong to different company codes (example, NSS orders from NSM). Basically, a purchasing organization, which
is assigned to the ordering company code, creates a purchase order ordering goods from a plant assigned to
another company code. The plant in the delivering company code delivers the goods to the plant for which the
purchasing organization ordered the goods. In SAP, the former will be referred to as delivering plant and the latter
as ordering plant.
Since the plants belong to different company codes, the procedure for delivering on the basis of a purchase order
from another plant should be similar to delivering on the basis of a sales order from a customer and for the billing
procedure, because the two companies balance their accounts independently, the delivering company must bill the
ordering company for the goods. This internal billing transaction is carried out by means of an inter company
billing document. The delivering company bills the ordering company at a price that allows the delivering company
to cover its costs.
1) Sales Order
8) Delivery
9) Invoice
Ordering Plant Customer
6) GR
2) PO
7) Invoice Verification
3) Sales Order
4) Delivery Delivering Plant
5) Invoice
When
When one plant needs goods that belong to another plant belonging to a different company code.
How




04/19/06 S12-Inter Company Stock Order.doc Page: 1

equivalent.

will be printed for checking and approval process.
System will do a credit checking. If the credit limit is exceeded, system will prompt a warning message. Sales
order will be printed for checking and approval process. In SAP, the plant doing this will be referred to as the
ordering plant.


Manager
Sales Order
S$ 0 ~ S$ 100 000 Θ
S$100 001 ~ S$ 1 000 000 O Θ
S$1 000 001 ~ S$ 2 000 000 O O Θ
S$2 000 001 ~ S$ 3 000 000 O O O Θ
S$3 000 001 ~ O O O O Θ
Miteihin
S$0 ~ S$ 200 000 O O O Θ
S$ 200 001 ~ O O O O Θ
Loss
S$0 ~ S$ 3000 Θ
S$3001 ~ S$ 5000 O O Θ
S$5001 ~ S$ 10 000 O O O Θ
S$10 001 ~ O O O O Θ
Sales Reduction
S$0 ~ S$ 30 000 Θ
S$30 001 ~ S$ 50 000 O O Θ
S$50 001 ~ S$ 100 000 O O O Θ
S$100 001 ~ O O O O Θ

the system.



Delivering plant sales section creates sales order in the system by entering all required information into SAP
system. Sales order will be printed for checking and approval process.
System will do a credit checking. If the credit limit is exceeded, system will block the sales order for further
transaction. Sales order will be printed for checking and approval process.

When the sales order has been created and saved, the delivering plant will deliver the goods to the ordering plant.
Step 12: Post Goods Receipt (GR)

The ordering plant posts goods receipt. For more info on goods receipt, refer to Goods Receipt Business
Procedure.

Delivering plant bills ordering plant for the delivery done.
Step 14: Invoice Verification (IR)


When the sales order has been created and saved, the ordering plant will deliver the goods to the customer.

After the ordering plant has delivered the goods, all necessary documents are to be submitted to Admin section for
invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant documents
attached are checked against the request must be correct. When checking is completed, Admin creates billing
document to customer referring to delivery document.
Responsibility
Sales Section
Admin Section

Start
Quotation No
Needed? Customer raises an order
Yes
Create/Revise Quotation
Check terms and
Yes conditions
Quotation
Approve?
Yes Create Sales Order
No
Need to revise
quotation
Check and approve
sales order
No
End
Initiate Purchase
Requisition
Raise Purchase Order Create Sales Order
Post Goods Receipt Create Delivery Document
Ordering Plant
Invoice Verification Create Billing Document
Delivering Plant
End

If it is more than three parties get involved in this process, a normal sales and purchasing transaction will be
carried out. It means sales order and purchase order will not be linked, and sales order in another company has to
be created manually, unless IDoc is to be used to initiate sales order.
SAP Settings
• Define Order Type For Intercompany Billing
Interco Billing Description Comments

Type
IV Inter-company billing This document type is used for inter-company
stock transport order billing.
IG Internal credit memo This document type is used to pass an internal
credit note between two NEL affiliate companies.
• Number ranges
Interco Billing Number ranges Comments

Type
IV
IG
See Also
a) Stock Order
f) Consignment Pick-up Stock Order
g) Consignment Issue Stock Order
h) Inter Company Stock Order
i) Perform Credit Management

Nissei Sangyo S13-Direct Order.doc – Business Procedure Overview
Direct Order
What
In direct order processing, NS does not deliver the items requested by a customer. Instead, NS pass the order
along to a third-party supplier who then ships the goods directly to the customer and bills NS. NS bills the
customer only after supplier invoice is accepted. Delivery document is required if the goods are delivered through
land, otherwise airway bill number or the bill of lading number can be used as delivery document.
When
The direct order process begins when customer raises an order for products are not kept in the stock or not
enough stock in the warehouse.
How



A customer raises a Purchase Order to Nissei Sangyo.

equivalent.

Sales section creates sales order in the system by entering all required information into SAP system. System will
do credit checking. If the credit limit is exceeded the maximum limit allowed, system will block the sales order for
further transaction. Purchase requisition is created automatically after sales order is saved. Sales order will be
printed for checking and approval process.
Step 7: Check and approve sales order

obtained from the Administration Section.
Step 8: Create purchase order


04/19/06 S13-Direct Order.doc Page: 1
Step 9: Send purchase order and sales confirmation

There are three copies of purchase order (A1, A2, A3) and sales confirmation (B1, B2, B3) (if any). Two copies (A1
and A2) are sent to the supplier and one copy (A3) is filed in the sales section, and two copies (B1 and B2) of
sales confirmation are sent to the customer and one is filed in the sales section.
The supplier will sign one copy of purchase order (A2) and the customer will sign one copy of sales confirmation
(B2). Sales section checks the signed documents to ensure all terms and conditions are in order. Both documents
will be returned to sales section for filling.
Step 10: Post Goods Receipt

When the customer has acknowledged receipt of the goods from the vendor, Sales dept will perform a goods
receipt. In this post goods receipt case, no accounting entry would be generated. If needed, a delivery note can be
generated when delivery is done through land.
Step 11: Create Export Invoice

If it is an oversea shipment, an export invoice is being generated and printed.
Step 12: Verify supplier invoice


are checked against the request must be correct. These attached documents include supplier invoice and delivery
documents. When checking is completed, Admin creates billing document referring to the sales order.
Responsibility
Sales Section
Admin Section

Start
Customer raises an order
No
Quotation
Needed?
Yes
Yes Check terms and conditions
Create Sales Order
Quotation
Approve?
No Check and approve sales

Yes order
Need to revise
quotation
Create purchase order
Send purchase order and

sales confirmation
Post Goods Receipt
No Need Export
Create Export Invoice
Invoice?
Yes
No
Create billing document
End


The processing of direct orders is controlled via material types. Material types define whether a material is sold
from stock, or can be ordered only from third-party suppliers, or whether both are possible. For example, a
material that is defined as a trading good can only be ordered from a third-party supplier. Only after the supplier
invoice is received, billing to customer can be done. System will copy order quantity in the supplier invoice and
sales price in the sales order into billing document.
SAP Settings
In SAP, Direct Order processing is called Third Party Order Processing.
• Automatic third-party order processing
If a material is always delivered from one or more third-party suppliers, we can specify in the material master that
the material is a third-party item. During subsequent sales order processing, the system automatically determines
the appropriate item category for a third-party item: TAS. To specify a material as a third-party item, enter BANS
in the Item category group field in the Sales 2 screen of the material master record.
• Manual third-party order processing
In the case of a material that we normally deliver ourselves but occasionally need to order from a third-party
vendor, we can overwrite the item category during sales order processing. For a material that we normally deliver
ourselves, we specify the item category group NORM in the material master.
• Billing Third-Party Orders
If relevance for billing indicator for the item category has been set to B (relevant for order-related billing on the
basis of the order quantity) in Customizing, the system includes the order in the billing due list immediately. If,
however, the indicator has been set to F (relevant to order-related billing on the basis of the invoice quantity), the
system does not include the order in the billing due list until an invoice from the vendor has been received and
processed by the purchasing department. In the standard system, item category TAS (third-party order processing)
has been given billing-relevance indicator F.
See Also
Contract Direct Order
Scheduling agreement Direct Order
Returns Direct Order
Intercompany Direct Order
Consignment fill-up Direct Order with cost
Consignment fill-up Direct Order without cost
Consignment pick-up Direct Order with cost
Consignment pick-up Direct Order without cost
Consignment issue Direct Order with cost
Consignment issue Direct Order without cost
Consignment returns Direct Order
Returns intercompany Direct Order (Returns to selling company)
Returns intercompany Direct Order (Returns to ordering company)

Nissei Sangyo S14-Contract Direct Order.doc – Business Procedure Overview
Contract Direct Order
What
Contract Direct Order process is similar to Contract Stock Order process where NS fulfills the customer contracts,
an outline customer agreement showing the sales materials or services that are to be sold within a certain time
period. The difference is that vendor delivers the goods or service directly to the customer.
When
The Contract Direct Order process begins when NS and the customer agree upon an outline agreement for sale of
products or services. There after, customer fulfills this contract by placing sales order to NS for products that are
not kept in the stock or not enough stock in the warehouse.
How
NS and the customer agree upon an outline agreement for sale of products and services.
Step 2: Create Contracts

Sales section creates sales contract in the system by entering all required information into SAP system. The type
of Sales Contract available in the SAP system that will be used in NS business environment typically is
• Quantity Contracts
A quantity contract is an agreement that NS’s customer will order a certain quantity of a product from NS
during a specified period. The contract contains basic quantity and price information, but does not specify
delivery dates or quantities.

In the Contract Stock Order process, the customer fulfills the contract by placing sales order to NS.

equivalent.

do a credit checking. If the credit limit is exceeded, system will block the sales order for further transaction. Sales


Manager
Sales Order
S$ 0 ~ S$ 100 000 Θ
S$100 001 ~ S$ 1 000 000 O Θ
S$1 000 001 ~ S$ 2 000 000 O O Θ
S$2 000 001 ~ S$ 3 000 000 O O O Θ
S$3 000 001 ~ O O O O Θ

04/19/06 S14-Contract Direct Order.doc Page: 1
Miteihin
S$0 ~ S$ 200 000 O O O Θ
S$ 200 001 ~ O O O O Θ
Loss
S$0 ~ S$ 3000 Θ
S$3001 ~ S$ 5000 O O Θ
S$5001 ~ S$ 10 000 O O O Θ
S$10 001 ~ O O O O Θ
Sales Reduction
S$0 ~ S$ 30 000 Θ
S$30 001 ~ S$ 50 000 O O Θ
S$50 001 ~ S$ 100 000 O O O Θ
S$100 001 ~ O O O O Θ

the system.


When the customer has acknowledged receipt of the goods from the vendor, Sales dept will perform a goods
receipt. In this post goods receipt case, no accounting entry would be generated. If needed, a delivery note can be
generated when delivery is done through land.



referring to sales order.
Responsibility
Sales Section
Admin Section

Start
Customer raises
an order
Customer raise outline

agreement
Check terms and

conditions
Create Contract
Create Sales Order
Check and approve

sales order
Initiate Purchase
Requisition
Create
Purchase Order
Post Goods Receipt
Need Export
Create Export Invoice
Invoice?
Yes
No
Create billing document
End

This contract is an agreement that the customer will order a certain quantity of a product and the customer fulfills a
contract by placing sales orders against it. Based on these sales orders, purchase orders will be raised to the
supplier and the supplier will deliver directly to the customer.
SAP Settings
It is a combination of contract stock order and direct order processing, therefore all configuration for both
processes will apply to this particular scenario.
See Also
a) Direct Order
b) Scheduling agreement Direct Order
c) Returns Direct Order
d) Intercompany Direct Order
e) Consignment fill-up Direct Order with cost
f) Consignment fill-up Direct Order without cost
g) Consignment pick-up Direct Order with cost
h) Consignment pick-up Direct Order without cost
i) Consignment issue Direct Order with cost
j) Consignment issue Direct Order without cost
k) Consignment returns Direct Order
l) Returns intercompany Direct Order (Returns to selling company)
m) Returns intercompany Direct Order (Returns to ordering company)

Nissei Sangyo S15-Returns Direct Order.doc – Business Procedure Overview
Returns Direct Order
What
When customers who purchases through direct order, returns the goods, a Returns Direct Order process is
activated once the returned goods are checked and the return approved. There are two scenarios for a Returns
Direct Order process, customer returns to NS and NS returns to vendor OR customer returns to vendor.
When
The returns direct order process begins when customer returns the goods.
How
A. Goods returned to NS
Step 1: Customer returns goods to NS

Customer returns goods to NS.

When customer does a return based on a complaint, NS:
• Approve the return and carry on with subsequent process of issuing a credit memo with reference
to the return
• Approve the return, and implement a free of charge subsequent delivery based on the return

Sales section creates return sales order in the system by entering all required information into SAP system.


After the goods have been receipt, all necessary documents are to be submitted to Admin section for invoicing.
credit memo referring to sales order.
Step 6: Return to vendor

NS returns goods to vendor. For more information, refer to the Return to Vendor Business Procedure .
B. Goods returned to Vendor
Step 1: Customer returns goods to Vendor

Customer returns goods to vendor.
Step 2: Customer Informs NS

When customer does a return based on a complaint to vendor, customer will update NS of the return.

04/19/06 S15-Returns Direct Order.doc Page: 1
Step 3: Create credit memo request

Sales section creates credit memo request in the system by entering all required information into SAP system.

Once the credit memo request has been created, all necessary documents are to be submitted to Admin section
for invoicing. When Admin section receives request for invoicing, Admin section is to ensure all relevant
documents attached are checked against the request must be correct. When checking is completed, Admin
creates billing document – credit memo referring to credit memo request.
Step 5: Issue credit note

Vendor issues credit note to NS. Sales Administration posts the credit note into the system.
Responsibility
Sales Section
Admin Section

A. Goods Returned to NS B. Goods Returned to Vendor
Start Start
Customer returns goods to Customer returns goods to

NS vendor
Check and Approve Return Customer informs NS
Create Credit Memo

Create Sales Order
Request
Create Delivery Document Create Billing Document
Create Billing Document Issue credit note
End
Return to Vendor
End

on approval.
stock).
SAP Settings

RE Returns
• Number Ranges

RE ???
See Also
a) Direct Order
b) Contract Direct Order
c) Scheduling agreement Direct Order
d) Intercompany Direct Order
l) Returns intercompany Direct Order (Returns to selling company)
m) Returns intercompany Direct Order (Returns to ordering company)

Nissei Sangyo S16-Consignment Fill-up Direct Order with cost.doc – Business Procedure Overview
Consignment Fill-up Direct Order with Cost
What
Consignment Fill-up Direct Order with cost is a process used to supplement the customer’s consignment stock
where goods are being delivered by vendor to the customer’s location and these goods are stored at the customer
location but which are owned by NS. The customer is not obliged to pay for these goods until they remove them
from consignment stock. Otherwise, the customer can usually return consignment good which are not required.
taken.
location
When
The Consignment Fill-up Direct Order with Cost process begins when NS and the customer agree upon an outline
agreement for consignment of products or services. There after, this process is used when there is a need to
supplement the customer’s consignment stock.
How

Sales section creates consignment fill-up direct order with cost sales order in the system by entering all required
information into SAP system. System will do a credit checking. If the credit limit is exceeded, system will block the


Manager
Sales Order
S$ 0 ~ S$ 100 000 Θ
S$100 001 ~ S$ 1 000 000 O Θ
S$1 000 001 ~ S$ 2 000 000 O O Θ
S$2 000 001 ~ S$ 3 000 000 O O O Θ
S$3 000 001 ~ O O O O Θ
Miteihin
S$0 ~ S$ 200 000 O O O Θ
S$ 200 001 ~ O O O O Θ

04/19/06 S16-Consignment Fill-up Direct Order with cost.doc Page: 1
Loss
S$0 ~ S$ 3000 Θ
S$3001 ~ S$ 5000 O O Θ
S$5001 ~ S$ 10 000 O O O Θ
S$10 001 ~ O O O O Θ
Sales Reduction
S$0 ~ S$ 30 000 Θ
S$30 001 ~ S$ 50 000 O O Θ
S$50 001 ~ S$ 100 000 O O O Θ
S$100 001 ~ O O O O Θ
section.

Once Admin section has generated the fill-up sales order, the system will automatically initiate a purchase
requisition in the system.

Step 6: Goods Receipt (GR)



When shipment is done through air or sea, the airway bill number or the bill of lading number will be used to serve
as the delivery note to customer. When shipment is done through land, delivery note to customer will be generated
referring to the fill-up sales order.
When delivery note to customer is needed it will be generated referring to the fill-up sales order.
In the case of export sales, the Traffic Center will verify the LCs and shipment documents (ie. DO, packing list and
export invoice) before approving the delivery. The system will also allow changes to some statistical data in the
export sales documents (ie. material description etc.)
Responsibility
Sales Section
Admin Section

Start

agreement
Create Sales Order
Check and approve

sales order
Initiate
Purchase Requisition
Create
Purchase Order
Goods Receipt
Invoice Verification
Create
Delivery Document
End

stock) after GR is done. When we ship consignment stock to the customer, we record the transaction by creating a
consignment fill-up order (order type KB). As a result, the system carries out the following actions:
• The relevant quantity is removed from regular inventory in our plant and is added to the special stock for the
customer. The total valuated stock for the plant remains the same.
• The transaction is not relevant for pricing since the consignment stock remains the property of our company.
SAP Settings

• Number Ranges

KB ???
See Also
a) Direct Order
b) Returns Direct Order
c) Intercompany Direct Order
d) Contract Direct Order
e) Consignment fill-up Direct Order without cost
f) Consignment pick-up Direct Order with cost
g) Consignment pick-up Direct Order without cost
h) Consignment issue Direct Order with cost
i) Consignment issue Direct Order without cost
j) Consignment returns Direct Order
k) Returns intercompany Direct Order (Returns to selling company)
l) Returns intercompany Direct Order (Returns to ordering company)

Nissei Sangyo S17-Consignment Fill-up Direct Order without cost.doc – Business Procedure
Overview
Consignment Fill-up Direct Order without Cost
What
Consignment Fill-up Direct Order without cost is a process used to supplement the customer’s consignment stock
where goods are being delivered by vendor to the customer’s location and these goods are stored at the customer
location but which are owned by the vendor. The customer is not obliged to pay for these goods until they remove
them from consignment stock. Otherwise, the customer can usually return consignment good which are not
required.
taken.
location. The usage of non-evaluated plant will be introduced for this purpose.
When
The Consignment Fill-up Direct Order without Cost process begins when NS and the customer agree upon an
outline agreement for consignment of products or services. There after, this process is used when there is a need
to supplement the customer’s consignment stock.
How

order will be printed for checking and approval process. Non valuated plant will be introduce.


Manager
Sales Order
S$ 0 ~ S$ 100 000 Θ
S$100 001 ~ S$ 1 000 000 O Θ
S$1 000 001 ~ S$ 2 000 000 O O Θ
S$2 000 001 ~ S$ 3 000 000 O O O Θ
S$3 000 001 ~ O O O O Θ
Miteihin
S$0 ~ S$ 200 000 O O O Θ
S$ 200 001 ~ O O O O Θ

04/19/06 S17-Consignment Fill-up Direct Order without cost.doc Page: 1
Overview
Loss
S$0 ~ S$ 3000 Θ
S$3001 ~ S$ 5000 O O Θ
S$5001 ~ S$ 10 000 O O O Θ
S$10 001 ~ O O O O Θ
Sales Reduction
S$0 ~ S$ 30 000 Θ
S$30 001 ~ S$ 50 000 O O Θ
S$50 001 ~ S$ 100 000 O O O Θ
S$100 001 ~ O O O O Θ
section.

Once Admin section has generated the fill-up sales order, the system will automatically initiate a purchase
requisition in the system.

A FOC purchase order is to be created. For more information, refer to the Purchase Order Processing Business
Procedure.
Step 6: Create GR document

NS performs a goods receipt process when vendor delivers goods to the customer. The goods will be received into
a non-valuated plant. For more information, refer to the Goods Receipt Business Procedure .

A delivery with reference to the fill-up sales order is created.
Responsibility
Sales Section
Admin Section

Overview
Start

agreement
Create Sales Order
Check and approve

sales order
Initiate Purchase
Requisition
Create
Purchase Order
Create GR document
Create delivery document
End

Overview
Non-valuated plant is used to track consignment goods at the customer site, therefore only quantity is maintained
in
the NS system and the consignment goods are still owned by the supplier.
stock) after GR is done in the non-valuated plant. When we ship consignment stock to the customer, we record the
transaction by creating a consignment fill-up order (order type KB). As a result, the system carries out the following
actions:
• The relevant quantity is removed from non-valuated plant and is added to the special stock for the customer.
The total valuated stock for the non-valuated plant remains the same.
• The transaction is not relevant for pricing.
SAP Settings

• Number Ranges

KB ???
See Also
a) Direct Order

Nissei Sangyo S18-Consignment Pick-Up Direct Order with cost.doc – Business Procedure Overview
Consignment Pick-Up Direct Order with Cost
What
Any consignment direct order goods with cost stored at the customer’s warehouse that haven’t been used can be
re-posted to NS company’s warehouse with a consignment direct order pick-up with cost.
If the customer returns consignment direct order stock to NS, NS records the transaction in the system by creating
a consignment direct order pick-up order with cost . As a result, the system carries out the following actions:
added back into NS regular stock at the plant where the goods are returned. NS total valuated stock
remains the same since the returned stock was regarded as part of NS own inventory even while it was at
the customer’s premises.
When
The Consignment Pick-Up Direct Order with Cost process begins when the returns consignment direct order stock
to NS.
How
Customer returns consignment direct order with cost stock to NS.

Sales section creates consignment pick-up direct order with cost sales order in the system by entering all required

Create a delivery document as the subsequent document for this consignment pick-up direct order with cost sales
order and, post goods receipt. The good issue posting which initiates a transfer posting from the customer’s special
stock to NS plant stock completes the transaction.
Responsibility
Sales Section
Admin Section

04/19/06 S18-Consignment Pick-Up Direct Order with cost.doc Page: 1
Start
Create Sales Order
End

Any consignment goods stored at the customer’s warehouse that haven’t been used can be re-posted to our
company’s warehouse with a consignment pick-up.
back into our regular stock at the plant where the goods are returned. Our total valuated stock remains the
same since the returned stock was regarded as part of our own inventory even while it was at the customer’s
premises.
SAP Settings

• Number Ranges

KA ???
See Also
a) Direct Order
g) Consignment issue Direct Order with cost

Nissei Sangyo S19-Consignment Pick-Up Direct Order without cost.doc – Business Procedure Overview
Consignment Pick-Up Direct Order without Cost
What
Any consignment direct order goods without cost stored at the customer’s warehouse that haven’t been used can
be re-posted to non-valuated plant with a consignment direct order pick-up without cost process.
If the customer returns consignment direct order stock to NS, NS records the transaction in the system by creating
a consignment direct order pick-up order without cost. As a result, the system carries out the following actions:
added back into NS non-valuated plant regular stock where the goods are returned. NS total non-valuated
stock remains the same since the returned stock was regarded as part of NS own inventory even while it
was at the customer’s premises.
When
The Consignment Pick-Up Direct Order without Cost process begins when the returns consignment direct order
stock to NS.
How
Customer returns consignment direct order without cost stock to NS.

Sales section creates consignment pick-up direct order without cost sales order in the system by entering all
required information into SAP system.

Create a delivery document as the subsequent document for this consignment pick-up direct order without cost
sales order and, post goods receipt. The good issue posting which initiates a transfer posting from the customer’s
special stock to NS non-valuated plant stock completes the transaction.
Step 4: Return to Vendor

Return the goods to the vendor. For more information, refer to the Return to Vendor Business Procedure .
Responsibility
Sales Section
Admin Section

04/19/06 S19-Consignment Pick-Up Direct Order without cost.doc Page: 1
Start
Create Sales Order
Create
Return
Delivery
to Vendor
Document
End

back into non-valuated plant where the goods are returned. Our total non-valuated stock remains the same
since the returned stock was regarded as part of our own inventory even while it was at the customer’s
premises.
SAP Settings

• Number Ranges

KA ???
See Also
a) Direct Order
g) Consignment issue Direct Order with cost
h) Consignment pick-up Direct Order with cost

Nissei Sangyo S20-Consignment Issue Direct Order with cost.doc – Business Procedure Overview
Consignment Issue Direct Order with Cost
What
applies in the case of NS business environment for Consignment Stock Direct Order with Cost process, when the
customer uses the consigned goods.
customer.
your own total valuated stock.
When
The Consignment Issue Direct Order with Cost process begins when the customer removes consignment stock to
use.
How

Sales section creates consignment issue direct order with cost sales order in the system by entering all required

Create a delivery as the subsequent document for this consignment issue sales order and, after picking has been
completed successfully, post goods issue. The goods are then reduced by the relevant quantity in the special stock
assigned to the customer. This goods issue also reduces the total stock in NS.

delivery document issuing the consignment goods.
Responsibility
Sales Section
Admin Section

04/19/06 S20-Consignment Issue Direct Order with cost.doc Page: 1
Start
Create Sales Order
Create Invoice
End

• When goods issue is posted, the relevant quantity is deducted from both the customer’s special stock and our
own total valuated stock.
SAP Settings

• Number Ranges

KE ???
• Other settings are the same like stock order processing.
See Also
a) Direct Order

Nissei Sangyo S21-Consignment Issue Direct Order without cost.doc – Business Procedure Overview
Consignment Issue Direct Order without Cost
What
applies in the case of NS business environment for Consignment Stock Direct Order without Cost process, when
the customer uses the consigned goods.
customer.
your own total valuated stock from the non-valuated plant.
When
The Consignment Issue Direct Order without Cost process begins when the customer removes consignment stock
to use.
How

Sales section creates consignment issue direct order without cost sales order in the system by entering all required

the system.



Create a delivery as the subsequent document for this consignment issue sale order and then post goods issue.
The goods are then reduced by the relevant quantity in the special stock assigned to the customer. This goods
issue also reduces the non-valuated plant’s total stock in NS.

delivery document issuing the consignment goods.

04/19/06 S21-Consignment Issue Direct Order without cost.doc Page: 1
Responsibility
Sales Section
Admin Section

Start
Create Sales Order
Initiate Purchase
Requisition
Raise Purchase Order
Create Invoice
End

• When goods issue is posted, the relevant quantity is deducted from both the customer’s special stock and our
own total non-valuated stock.
• It triggers a PO to supplier and supplier will send invoice to us
SAP Settings

• Number Ranges

KE ???
• Other settings are the same like consignment issue direct order.
See Also
a) Direct Order

Nissei Sangyo S22-Inter Company Direct Order.doc – Business Procedure Overview
Inter Company Direct Order
What
(company codes) belonging to one organization.
In the case of Inter Company Direct Order, a sales organization that is assigned to the ordering company code
creates sales order ordering goods from a plant assigned to another company code.
The plant in the delivering company code delivers the goods to the customer for whom the sales organization
placed the order.
The delivering plant bills the ordering company (sales organization) - this process is termed as inter company
billing and this billing process carry out posting to vendor account for the ordering company code.
1) Sales Order
8) Invoice
6) Confirmation
2) PO
4) Delivery
3) SalesOrder
Delivering Plant
5) Invoice
When
When one plant needs the help of another plant assigned to another company code to deliver goods to the
customer.
How




equivalent.

04/19/06 S22-Inter Company Direct Order.doc Page: 1

processing. Sales order will be printed for checking and approval process. In SAP, the plant doing this will be
referred to as the ordering plant.
The main thing here is to maintain the correct delivering plant.


Manager
Sales Order
S$ 0 ~ S$ 100 000 Θ
S$100 001 ~ S$ 1 000 000 O Θ
S$1 000 001 ~ S$ 2 000 000 O O Θ
S$2 000 001 ~ S$ 3 000 000 O O O Θ
S$3 000 001 ~ O O O O Θ
Miteihin
S$0 ~ S$ 200 000 O O O Θ
S$ 200 001 ~ O O O O Θ
Loss
S$0 ~ S$ 3000 Θ
S$3001 ~ S$ 5000 O O Θ
S$5001 ~ S$ 10 000 O O O Θ
S$10 001 ~ O O O O Θ
Sales Reduction
S$0 ~ S$ 30 000 Θ
S$30 001 ~ S$ 50 000 O O Θ
S$50 001 ~ S$ 100 000 O O O Θ
S$100 001 ~ O O O O Θ

the system.



Delivering plant sales section creates sales order in the system by entering all required information into SAP
system. Sales order will be printed for checking and approval process.

When the sales order has been created and saved, the delivering plant will deliver the goods to the customer.
Step 12: Post Goods Receipt (GR)

The ordering plant will do a goods receipt at the same time the delivery document is created.

Delivering plant bills ordering plant for the delivery done.


Based on the delivering plant invoice referring to a sales order and shipping documents, sales section of the
ordering plant verifies and enters the required data into the SAP system. The posted invoice passes on
information about payments to delivering plant into Financial Accounting. For more information, refer to the
Invoice Verification Business Procedure .

After the delivering plant has delivered the goods, all necessary documents are to be submitted to Admin section
creates billing document to customer referring to sales order.
Responsibility
Sales Section
Admin Section

Start
Quotation No
Needed? Customer raises an order
Yes
Create/Revise Quotation Check terms and

Yes conditions
Quotation
Approve?
Yes Create Sales Order
No
Need to revise
quotation
Check and approve
sales order
No
End
Initiate Purchase
Requisition
Raise Purchase Order Create Sales Order
Ordering Plant
Post Goods Receipt Create Delivery Document
Need Export
Create Export Invoice Invoice?
Yes
No
Invoice Verification Create Billing Document
Delivering Plant
End

SAP Settings

Type
• Number ranges

Type
IV
IG
See Also
a) Direct Order
c) Scheduling agreement Direct Order
d) Returns Direct Order
l) Returns inter company Direct Order (Returns to selling company)
m) Returns inter company Direct Order (Returns to ordering company)

Nissei Sangyo S23-Returns Inter Company Direct Order.doc – Business Procedure Overview
Returns Inter Company Direct Order
What
When customers who purchases through inter company direct order, returns the goods, an Inter Company Returns
Direct Order process is activated once the returned goods are checked and the return approved. There are two
scenarios for an Inter Company Returns Direct Order process, customer returns to ordering plant and ordering
plant returns to delivering plant OR customer returns to delivering plant.
When
The returns inter company direct order process begins when customer returns the goods.
How
A. Goods returned to ordering plant
Credit Memo

Goods Returned
Goods Returned
Intercompany
Credit Memo
Delivering Plant
Step 1: Customer returns goods to ordering plant

Customer returns goods to ordering plant.

When customer does a return based on a complaint, ordering plant:
• Approve the return, arrange for stock transfer back to delivering plant and carry on with
subsequent process of issuing a credit and debit memo with reference to the return to customer
and delivering plant.
• Approve the return, arrange for stock transfer back to delivering plant and implement a free of
charge subsequent delivery based on the return

Sales section in the ordering plant creates return sales order in the system by entering all required information into
SAP system. System will do credit checking. If the credit limit is exceeded the maximum limit allowed, system will
block the sales order for further transaction. Sales order will be printed for checking and approval process.

04/19/06 S23-Returns Inter Company Direct Order.doc Page: 1


After the goods have been receipts, all necessary documents are to be submitted to Admin section for invoicing.
credit memo referring to sales order for the customer.
Step 6: Ordering plant returns goods to delivering plant

Ordering plant returns the goods to delivery plant. For more information, refer to Return to Vendor Business
Procedure.

Sales section in the delivering plant creates return sales order in the system by entering all required information
into SAP system. System will do credit checking. If the credit limit is exceeded the maximum limit allowed, system
will block the sales order for further transaction. Sales order will be printed for checking and approval process.

for the return delivery matches the goods receipt to the stock at the delivering plant.

After the goods have been receipts, all necessary documents are to be submitted to Admin section for invoicing.
credit memo referring to sales order for the ordering plant.
B. Goods returned to delivering plant
Credit Memo
Intercompany
Credit Memo
Goods Returned
Delivering Plant
Step 1: Customer returns goods to delivering plant

Customer returns goods to delivering plant.
Step 2: Customer Informs ordering plant

When customer does a return based on a complaint to the delivering plant, customer will update ordering plant of
the return.

When customer does a return based on a complaint, delivering plant:


• Approve the return, carry on with subsequent process of issuing a credit and debit memo with
reference to the return to customer and ordering plant.
• Approve the return, implement a free of charge subsequent delivery based on the return

Sales section creates a sales order for credit memo request in the system by entering all required information into
SAP system. System will do credit checking. If the credit limit is exceeded the maximum limit allowed, system will
block the sales order for further transaction. Sales order will be printed for checking and approval process.

for the return delivery matches the goods receipt to the stock at the delivering plant.

creates billing document – credit memo referring to credit memo request to the ordering plant.
Step 6: Delivering plant issues credit note to ordering plant

After receiving credit note, ordering plant post the credit note in SAP.

Sales section at the ordering plant creates a sales order for credit memo request in the system by entering all
required information into SAP system. System will do credit checking. If the credit limit is exceeded the maximum
limit allowed, system will block the sales order for further transaction. Sales order will be printed for checking and
approval process.

creates billing document – credit memo referring to credit memo request to the customer.
Responsibility
Sales Section
Admin Section

A. Goods Returned to Ordering

Plant B. Goods Returned to Delivery Plant
Start Start
Customer returns Customer returns

goods to Ordering goods to delivery
Plant plant
Check and Approve Customer informs

Return ordering plant
Ordering Plant
Ordering Plant
Check and Approve

Create Sales Order
Return
Create Delivery
Create Sales Order
Document
Create Billing Create Delivery

Document Document
Ordering plant Create Billing

returns goods to Document
delivering plant
Create Sales Order Receive Credit Note

Delivering Plant
Delivering Plant
Create Delivery
Document Create Sales Order
Create Billing Create Billing

Document Document
End End

on approval.
stock).
SAP Settings

RE Returns
• Number Ranges

RE ???
See Also
a) Direct Order
c) Inter company Direct Order
d) Consignment fill-up Direct Order with cost
e) Consignment fill-up Direct Order without cost
j) Returns Direct Order

Nissei Sangyo S24-Inter Company Direct Order with Supplier.doc – Business Procedure Overview
Inter Company Direct Order with Supplier
What
(company codes) belonging to one organization, company A (ordering plant) and company B - (please refer to the
Inter Company Direct Order Process BPP).
In the case of Inter Company Direct Order with supplier, a sales organization that is assigned to the ordering
company code(company A) creates sales order ordering goods from a plant assigned to another company
code(company B) which would do a direct order process to request the vendor to deliver the goods to the customer
(please refer to the Direct Order Process BPP).
Then, company B bills the ordering company (company A) - this process is termed as inter company billing and
this billing process carry out posting to vendor account for the ordering company code and the ordering plant will
then bill the customer.
1) Sales Order
11) Invoice
9) Confirmation
2) PO
4) Delivery
3) SalesOrder 3) PO
Delivering Plant Supplier
8) Invoice
6) Confirmation 5) Invoice
When
When one plant needs the help of another plant assigned to another company code to request a vendor to deliver
goods to the customer.
How



A customer raises a Purchase Order to ordering plant.

04/19/06 S24-Inter Company Direct Order with Supplier.doc Page: 1

equivalent.



Manager
Sales Order
S$ 0 ~ S$ 100 000 Θ
S$100 001 ~ S$ 1 000 000 O Θ
S$1 000 001 ~ S$ 2 000 000 O O Θ
S$2 000 001 ~ S$ 3 000 000 O O O Θ
S$3 000 001 ~ O O O O Θ
Miteihin
S$0 ~ S$ 200 000 O O O Θ
S$ 200 001 ~ O O O O Θ
Loss
S$0 ~ S$ 3000 Θ
S$3001 ~ S$ 5000 O O Θ
S$5001 ~ S$ 10 000 O O O Θ
S$10 001 ~ O O O O Θ
Sales Reduction
S$0 ~ S$ 30 000 Θ
S$30 001 ~ S$ 50 000 O O Θ
S$50 001 ~ S$ 100 000 O O O Θ
S$100 001 ~ O O O O Θ

the system.
Step 9: Raise Purchase Order (PO) in Company A



Company B sales section creates sales order in the system by entering all required information into SAP system.
Sales order will be printed for checking and approval process.

the system.
Step 12: Raise Purchase Order (PO) in Company B

Once the approval is obtained, Admin section converts purchase requisition to purchase order. The official
purchase order will be printed and sent to the vendor.

When the customer has acknowledged receipt of the goods from the vendor, Sales dept in Company B will
perform a goods receipt. In this post goods receipt case, no accounting entry would be generated. If needed, a
delivery note can be generated when delivery is done through land.
Step 14: Invoice Verification in Company B

The customer receives the goods from the vendor and the vendor bills company B. Sales Administration in
company B posts invoice from vendor

When the customer has acknowledged receipt of the goods from the vendor, Sales dept in Company A will
perform a goods receipt. In this post goods receipt case, no accounting entry would be generated. If needed, a
delivery note can be generated when delivery is done through land.

Step 17: Invoice Verification in Company A

Company A receives invoice from the company B. Sales Administration in Company A posts invoice in SAP.

All necessary documents are to be submitted to Admin section for invoicing. When Admin section receives
request for invoicing, Admin section is to ensure all relevant documents attached are checked against the request
must be correct. When checking is completed, Admin creates billing document to customer referring to sales
order.
Responsibility
Sales Section
Admin Section

Business Procedure Flow
Start
Customer raises an order
No
Quotation
Needed?
Yes Check terms and

conditions
Yes
Create Sales Order
Quotation
Approve?
Yes
No
Check and approve
sales order
Need to revise
quotation
No
Initiate Purchase Requisition
End
Create PO Create Sales Order

Company A in CompanyA
(Ordering Plant)
Post Goods Receipt Initiate Purchase Requisition
Create Export Invoice Need Export

Yes Invoice? Create PO
in Company B
No
Invoice Verification in
Company A Post Goods Receipt
Create Billing Document Invoice Verification in

Company B
Company B
(Delivering Plant)
End

SAP Settings

Type
• Number ranges

Type
IV
IG
See Also
Intercompany Direct Order
Intercompany Stock Order

Nissei Sangyo S25-DebitCredit Memo Processing.doc – Business Procedure Overview
Debit/Credit Memo Processing
What
Creating a credit or debit memo request enables creation of credit or debit memos based on a complaint.
If the price calculated for the customer was too high (for example, with the wrong scaled prices or because a
discount was forgotten, etc.), a credit memo request is created. The credit memo request can be automatically
blocked for checking. Once it has been approved, the block can be removed.
Consequently, if the prices calculated for the customer were too low (for example, if the wrong scale prices were
calculated, etc.), a debit memo request is created. The debit memo request can be automatically blocked for
checking. Once it has been approved, the block can be removed.
A debit or credit memo request can be created in the following ways:
– Without reference to an order
– With reference to an existing order, enter which order the complaint refers to.
– With reference to an invoice, enter which invoice the complaint refers to.
In all cases, the value or quantities that should be in the credit or debit memo are specified.
In SAP, the following entries are important when creating a debit or credit memo request:
• Customer number of the business partner who requests a credit memo or to whom a debit memo is to be
forwarded
• Order reason (why the debit/credit memo request is necessary)
• Material and the quantity in the request
When
Credit Memo Requests - If the customer complains that the price was miscalculated (for example, too high) you
request a credit memo for the appropriate sum, and you do not take the goods back.
Debit Memo Requests - If prices were calculated as too low, you request a debit memo.
How
Sales section creates debit/credit memo request in the system by entering all required information into SAP
system. Debit/Credit memo request will be printed for checking and approval process.
transaction.


Manager
Sales Order
S$ 0 ~ S$ 100 000 Θ
S$100 001 ~ S$ 1 000 000 O Θ
S$1 000 001 ~ S$ 2 000 000 O O Θ
S$2 000 001 ~ S$ 3 000 000 O O O Θ
S$3 000 001 ~ O O O O Θ
Miteihin
S$0 ~ S$ 200 000 O O O Θ
S$ 200 001 ~ O O O O Θ

04/19/06 S25-DebitCredit Memo Processing.doc Page: 1
Loss
S$0 ~ S$ 3000 Θ
S$3001 ~ S$ 5000 O O Θ
S$5001 ~ S$ 10 000 O O O Θ
S$10 001 ~ O O O O Θ
Sales Reduction
S$0 ~ S$ 30 000 Θ
S$30 001 ~ S$ 50 000 O O Θ
S$50 001 ~ S$ 100 000 O O O Θ
S$100 001 ~ O O O O Θ

referring to debit/credit memo request.
Responsibility
Sales Section
Admin Section

Start
Create Sales Order
Check and approve

sales order
End

SAP Settings

ZDM Debit memo request
ZCM Credit memo request

ZDM ???
ZCM


ZL2 Debit memo
ZG2 Credit memo
See Also
a) Inter Company Debit/Credit Memo processing

Nissei Sangyo S26-Inter Company DebitCredit Memo Processing.doc – Busi ness Procedure Overview
Inter Company Debit/Credit Memo Processing
What
Creating a credit or debit memo request enables creation of credit or debit memos based on a complaint. In this
case, the debit or credit memo request is a business transaction which takes place between two companies
(company codes) belonging to one organization. If the price calculated for Company A was too high (for example,
with the wrong scaled prices or because a discount was forgotten, etc.), a credit memo request is created. The
credit memo request can be automatically blocked for checking. Once it has been approved, the block can be
removed.
Consequently, if the prices calculated for Company B were too low (for example, if the wrong scale prices were
calculated, etc.), a debit memo request is created. The debit memo request can be automatically blocked for
checking. Once it has been approved, the block can be removed.
A debit or credit memo request can be created in the following ways:
– Without reference to an order
– With reference to an existing order, enter which order the complaint refers to.
– With reference to an invoice, enter which invoice the complaint refers to.
In all cases, the value or quantities that should be in the credit or debit memo are specified.
In SAP, the following entries are important when creating a debit or credit memo request:
• The company who requests a credit memo or to whom a debit memo is to be forwarded
• Order reason (why the debit/credit memo request is necessary)
• Material and the quantity in the request
When
Credit Memo Requests - If Company A complains that the price was miscalculated (for example, too high) you
request a credit memo for the appropriate sum, and you do not take the goods back.
Debit Memo Requests - If Company B complains prices were calculated as too low, a debit memo is requested.
How
Step 1: Request for Cr./Dr. Memo
In NS a request for Cr./Dr. Memo arises due to price difference or returns.

Sales section creates debit/credit memo request in the system by entering all required information into SAP
system. Debit/Credit memo request will be printed for checking and approval process.
transaction.


Manager
Sales Order
S$ 0 ~ S$ 100 000 Θ
S$100 001 ~ S$ 1 000 000 O Θ
S$1 000 001 ~ S$ 2 000 000 O O Θ
S$2 000 001 ~ S$ 3 000 000 O O O Θ
S$3 000 001 ~ O O O O Θ

04/19/06 S26-Inter Company DebitCredit Memo Processing.doc Page: 1
Miteihin
S$0 ~ S$ 200 000 O O O Θ
S$ 200 001 ~ O O O O Θ
Loss
S$0 ~ S$ 3000 Θ
S$3001 ~ S$ 5000 O O Θ
S$5001 ~ S$ 10 000 O O O Θ
S$10 001 ~ O O O O Θ
Sales Reduction
S$0 ~ S$ 30 000 Θ
S$30 001 ~ S$ 50 000 O O Θ
S$50 001 ~ S$ 100 000 O O O Θ
S$100 001 ~ O O O O Θ

referring to debit/credit memo request.
Step 5: Dr./Cr. Memo Receipt

The company who requests a credit memo or to whom a debit memo is to be forwarded receives the Dr./Cr. Memo
and post it into SAP.
Responsibility
Sales Section
Admin Section

Start
Request for Cr/Dr memo
Create Sales Order

Company A
Check and approve

sales order
Dr./Cr. Memo Receipt

Company B
End

For the intercompany debit/credit memo, another company will receive debit/credit memo.
SAP Settings

OR Standard Order

OR ???


G2 Credit Memo
L2 Debit Memo

G2 ???
L2 ???
See Also
a) Debit/Credit Memo processing

Nissei Sangyo S27-Commissions Processing.doc – Business Procedure Overview
Commissions Processing
What
A commission is given to an agent who gets the sales order. It is to be paid per transaction and only after the
customer has made the payment for the sales incurred.
When
The Commission process begins when NS and the Agent agree upon an outline agreement for commissions from
sale of products or services.
How
Sales section creates a credit memo request in the system by entering all required information into SAP system.
The Credit memo request will be printed for checking and approval process.
transaction.


Manager
Commission Payable (To Agent)
Per Contract O O O Θ

are checked against the request must be correct. When checking is completed, Admin creates a credit memo
referring to the credit memo request.
Responsibility
Sales Section
Admin Section

04/19/06 S27-Commissions Processing.doc Page: 1
Start
NS raise commission
agreementwith Agent
Create Sales Order
Check and approve

sales order
End

SAP Settings

ZCOM Commissions

ZCOM ???


ZCOM Commissions
See Also
a) Inter Company Commissions processing

Nissei Sangyo S28-Inter Company Commissions Processing.doc – Business Procedure Overview
Inter Company Commissions Processing
What
It is an agreement between two companies (company codes) belonging to one organization for commissions to be
paid by Company A to Company B for services rendered by Company B.
When
The Inter Company Commission process begins when two companies (company codes) belonging to one
organization agrees upon an outline agreement for commissions from services rendered.
How
Sales section creates a credit memo request in the system by entering all required information into SAP system.
The Credit memo request will be printed for checking and approval process.
transaction.


Manager
Sales Order
S$ 0 ~ S$ 100 000 Θ
S$100 001 ~ S$ 1 000 000 O Θ
S$1 000 001 ~ S$ 2 000 000 O O Θ
S$2 000 001 ~ S$ 3 000 000 O O O Θ
S$3 000 001 ~ O O O O Θ
Miteihin
S$0 ~ S$ 200 000 O O O Θ
S$ 200 001 ~ O O O O Θ
Loss
S$0 ~ S$ 3000 Θ
S$3001 ~ S$ 5000 O O Θ
S$5001 ~ S$ 10 000 O O O Θ
S$10 001 ~ O O O O Θ
Sales Reduction
S$0 ~ S$ 30 000 Θ
S$30 001 ~ S$ 50 000 O O Θ
S$50 001 ~ S$ 100 000 O O O Θ
S$100 001 ~ O O O O Θ

04/19/06 S28-Inter Company Commissions Processing.doc Page: 1

are checked against the request must be correct. When checking is completed, Admin creates a credit memo
referring to the credit memo request.
Step 4: Cr. Memo Receipt

The company rendering the service or eligible for the commission payment according to an outline commission
agreement receives the Cr. Memo.
Responsibility
Sales Section
Admin Section
Start
Commission Agreement
raised betwen two company
Create Sales Order

Company A
Check and approve

sales order
Cr. Memo Receipt

Company B
End

If NS gets the order from Japanese Companies, NS will give commissions to NS Tokyo.
SAP Settings

ZCOM Commissions

ZCOM ???


ZCOM Commissions
See Also
a) Commissions processing

Nissei Sangyo S29-Special Discount.doc – Business Procedure Overview
Special Discount
What
A special discount in the NS business may be a retroactive payment to the customer or a discount given to the
customer on a yearly basis.
If it is a retroactive payment to the customer, a special discount agreement has to be created in the system. This
special discount is based on the customer's sales volume over a specified time period as defined and agreed upon
in a special discount agreement. This agreement will have details such as,
• who receives the special discount payment
• On what criteria the special discounts is based ( customer, customer and material , and so on).
• How long the special discount agreement is valid – period.
Special discount Agreement can be settled partially or fully. In NS environment a full settlement is used. The
system automatically calculates the special discount based on the sales volume statistics or the lump sum and
deducts any previously paid special discounts. It then creates a credit memo request, and the document is
automatically blocked for billing. After approving the credit memo request, the person responsible can remove the
billing block. Now, create the final credit memo and issue the credit memo to the customer.
If a discount is to be given to a customer on a yearly basis, NS will raise a credit memo request. When the system
creates a credit memo request, the document is automatically blocked for billing. After approving the credit memo
request, the person responsible can remove the billing block. Now, create the final credit memo and issue the
credit memo to the customer.
When
The Special Discount process begins when the customers request for it.
How
Step 1: Customer request
Upon customer request.
Step 2: Retroactive Payment

Check if it is a retroactive payment or a yearly (periodically) discount payment

If it is not retroactive payment, sales section creates a credit memo request in the system by entering all required
information into SAP system. Credit memo request will be printed for checking and approval process.
transaction.


Manager
Sales Order
S$ 0 ~ S$ 100 000 Θ
S$100 001 ~ S$ 1 000 000 O Θ
S$1 000 001 ~ S$ 2 000 000 O O Θ
S$2 000 001 ~ S$ 3 000 000 O O O Θ
S$3 000 001 ~ O O O O Θ

04/19/06 S29-Special Discount.doc Page: 1
Miteihin
S$0 ~ S$ 200 000 O O O Θ
S$ 200 001 ~ O O O O Θ
Loss
S$0 ~ S$ 3000 Θ
S$3001 ~ S$ 5000 O O Θ
S$5001 ~ S$ 10 000 O O O Θ
S$10 001 ~ O O O O Θ
Sales Reduction
S$0 ~ S$ 30 000 Θ
S$30 001 ~ S$ 50 000 O O Θ
S$50 001 ~ S$ 100 000 O O O Θ
S$100 001 ~ O O O O Θ

are checked against the request must be correct. When checking is completed, Admin creates credit memo
referring to credit memo request.
Step 6: Create special discount agreement

If it is retroactive payment, create a special discount agreement in the system.
Step 7: Check and Approve special discount agreement

Admin section to check and approve special discount agreement before settling special discount.
Step 8: Settling Special discount

Run settling special discount.
Step 9: Go to Step 3
Go to step 3
Responsibility
Sales Section
Admin Section

Start
Customer request
Agreement
No Create Sales Order
Required?
Yes
Create Special Discount Check and approve

Agreement sales order
Check and approve

special discount agreement
End
SettlingSpecial Discount

SAP Settings
The standard version of the SAP R/3 System includes the following agreement types (the table shows the
corresponding condition types):
Agreement type Basis of special discount condition type
0001 Customer/material (%) BO01
Customer group (%) BO01
0002 Customer/material BO02
(quantity dependent)
0003 Customer (%) BO03
0004 Customer hierarchy (%) BO04
Cust. hierarchy/material(%) BO05
0005 Sales volume independent BO06
We can process the special discount agreements when the following prerequisite conditions are met:
• The sales organization in which we are processing sales orders must be relevant for the special discount
processing. We set this indicator in Customizing for Sales.
• The payer must be relevant for rebate processing. In many cases, the payer is the same as the customer. You
indicate whether a customer can receive the special discount by marking the Rebates field in the Billing view
of the customer master record.
• The billing type (invoice, credit memo, and so on) we are using must be relevant for rebate processing. We
set this indicator when defining billing types in Customizing for Sales.
See Also
Stock Order Processing
Direct Order Processing

Nissei Sangyo S30-Sending Samples with Cost.doc – Business Procedure Overview
Sending Samples with Cost
What
In this case, NS delivers free samples to the customer upon request from the customer. NS will purchase these
samples from the vendor.
When
When the customer raises a request for samples.
How
Step 1: Customer raises a request
Customer raises a request for samples to Nissei Sangyo.

Sales section creates sales order in the system by entering all required information into SAP system.

When shipment is done, delivery note to customer will be generated referring to sales order.
The system will also allow changes to some statistical data in the export sales documents (ie. material description
etc.)
Since it is free samples to the customer this delivery will not be subjected to any billing.
Responsibility
Sales Section
Admin Section

04/19/06 S30-Sending Samples with Cost.doc Page: 1
Start
Customer raises a request
Create Sales Order
End

We can create free of charge deliveries for sending samples of our products to the customer. The system will then
generate a delivery based on the free-of-charge delivery. This product is purchased from the supplier.
SAP Settings

OR Standard Order

OR ???



LF ???
See Also
a) Sending samples without Cost
b) Sending Samples with Price

Nissei Sangyo S31-Sending Samples without Cost.doc – Business Procedure Overview
Sending Samples without Cost
What
In this case, NS delivers free samples to the customer upon request from the customer. NS will obtain these
samples free from the vendor too.
When
How


When shipment is done, delivery note to customer will be generated referring to sales order.
etc.)
Since it is free samples to the customer this delivery will not be subjected to any billing.
Responsibility
Sales Section
Admin Section

04/19/06 S31-Sending Samples without Cost.doc Page: 1
Start
Create Sales Order
End

We can create free of charge deliveries for sending samples of our products to the customer. The system will then
generate a delivery based on the free-of-charge delivery. This product is given free from the supplier.
SAP Settings

OR Standard Order

OR ???



LF ???
See Also
a) Sending samples with Cost
b) Sending Samples with Price

Nissei Sangyo S32-Sending Samples with Price.doc – Business Procedure Overview
Sending Samples with Price
What
In this case, NS delivers samples to the customer upon request from the customer and bills customer for these
samples. NS will obtain these samples free from the vendor.
When
How


before approving the delivery.
etc.)

Responsibility
Sales Section
Admin Section

04/19/06 S32-Sending Samples with Price.doc Page: 1
Start
Create Sales Order
End

It is the same like stock order processing.
SAP Settings
•

OR Standard Order

OR ???



LF ???


F2 Invoice

F2 ???
See Also
a) Sending samples with Cost
b) Sending samples without Cost

Nissei Sangyo S33-Installation_Warranty_Service Agreement.doc – Business Procedure Overview
Installation/Warranty Service Agreement
What
Installation/warranty Service Agreement or service agreement in SAP, is a agreement to record the details of the
installation/warranty/service package that NS have agreed to provide a service recipient with, over a specified
period of time. Currently, NS only has this agreement between NSHS and Sanyo Hi-Tech Company (SHC). In this
agreement, NSHS is to provide installation and NSHS or another party ( Sanyo Hi-Tech Services – SHS ) will
carry out warranty services for a year to SHC ‘s customers who purchase the Sanyo Chipmounter product.
Consequently, NSHS will bill SHC in 3 billings. First billing is for the installation cost, the second invoice is the cost
for the first six months of warranty and the third billing is the cost for the last six months of warranty. In SAP,
NSHS will perform a cumulative billing for the second and third invoice generation. The table below shows the
conditions NSHS requires before doing an installation or warranty services under the installation/warranty/service
agreement.
Sales Order Entry

Type Done By Conditions Evidence
Installation 1. NSHS Engineer A fact of receipt of PO from Original PO from customer
customer
2. SHS Engineer A fact of receipt of PO from 1. Original PO from Customer
customer (NSS/NST/SHC)
2. Service Claim/Report from
SHS
Warranty 1. NSHS Engineer A fact of receipt of PO from Original PO from customer
customer
SHS
Invoicing
Installation 1. NSHS Engineer A fact of Completion of 1. Service Report
Installation Acknowledged by Customer
2. Acceptance Test
2. SHS Engineer A fact of Completion of 1. Service Report
Installation Acknowledged by Customer
2. Acceptance Test
SHS
4. Invoice from SHS
Warranty 1. NSHS Engineer A fact of service done by the 1. Service Report
respective engineer Acknowledged by Customer
2. SHS Engineer A fact of service done by the 1. Service Report
respective engineer Acknowledged by Customer
SHS
3. Invoice from SHS
When
When NSHS and the customer agree upon an outline agreement for sale of installation/warranty/services through
this process. There after, customer fulfills this agreement by placing purchase order (PO) to NSHS.

04/19/06 S33-Installation_Warranty_Service Agreement.doc Page: 1
How
NSHS and the customer agree upon an outline agreement for sale of installation/warranty/services through this
process.
Step 2: Create service agreement

Sales section creates a service agreement in the system by entering all required information into SAP system.
Transaction Amount Limit Authorization by

SVS ADM MD
OFFR MGR DR OFFR EX MGR
Order ~ $1000 O X
$1001 ~ $5000 O O X
$5001 ~ $20000 O O O O O X
$20001 ~ O O O O O O X
Acknowledgement of ALL O X
Order
Stock Purchase ALL O O O O O X X
(Stock In)
Miteihin ALL O O O O O X X
Advance Payment ALL O O O O O X X
Negative Margin/ ~ $1000 O O X
Decrease of Margin
$1001 ~ $5000 O O O O O X
$5001 ~ O O O O O O X
Order Cancellation ~ $1000 O O X
$1001 ~ $10000 O O O O O X
$10001 ~ O O O O O X X
Registration of ALL O O O O X
customer/supplier
Registration of Item ALL O X
Delivery ALL O X
(Authorization of D/O
& Export Invoice)
Sales (Issuing Tax ALL O O X
Invoice)
O = Check
X = Authorization
section.

Admin section is to ensure all relevant documents attached are checked against the request must be correct.
When checking is completed, Admin creates billing document.

Step 5: Create invoice list

An invoice list allows NS to create, at specified time intervals (as indicated in the service agreement), a list of
billing invoices to send to the customer.
The billing invoices in the invoice list can be single or collective documents (collective invoices combine items
from more than one delivery). In the case of NS its collective. NS uses this step when doing billing for warranty
services.
Step 6: Collect service reports and staff claims from service engineers
After servicing is done, service engineers will produce a service report to indicate the number of hours worked and
attached the staff claims for the service. Staff claims will indicate the amount for travel expenses.
Step 7: Post activity hours to the service agreement.

Upon receipt of service report, Admin section will book the number of service hours to the service agreement and
relevant item number. The service agreement will serve as an object for cost capturing.
Step 8: Post travel expense to the service agreement.

Upon receipt of staff claims for travel, Admin department will book the travel expenses to the service agreement
and item number.
Step 9: Settle cost to CO-PA for reporting at month-end.

At month-end, Admin section will settle the cost incurred from service agreement to CO-PA profitability segments
for reporting purposes.
Responsibility
Sales Section
Admin Section

Start

agreement
Obtain Service Reports and

Staff Claims from service
engineers.
Create
Service Agreement
Post service hours

Check and Approve referencing service contract
Service Agreement and item no.
Post travel expenses

Create Billing Document referencing service contract
and item no.
Installation
OR
Warranty Settle cost to CO-PA for
Warranty
Installation reporting at month end.
Create Invoice List End

SAP Settings
• Invoice List
• Periodic billing

ZSA Service Agreement

ZSA ???


See Also
a) Inter Company Installation/warranty Service Agreement
b) Chargeable Service

Nissei Sangyo S34-Inter Company Installation_Warranty_Service Agreement.doc – Business Procedure Overview
Inter Company Installation/Warranty Service Agreement
What
Inter Company Installation/warranty Service Agreement is very similar to that of Installation/warranty Service
Agreement Process (please refer to the Installation/warranty Service Agreement BPP). The difference is that, this
agreement is now between two company codes belonging to the same organization. Currently, in NS, this
agreement is practiced between NSHS and NSS or NSHS with NSTH.
When
When two company codes belonging to the same organization agree upon an outline agreement for sale of
installation/warranty/services through this process. There after, the ordering plant fulfills this agreement by placing
purchase order (PO) to the delivering plant.
How
Step 1: Ordering Plant raises outline agreement
NSHS and the ordering plant agree upon an outline agreement for sale of installation/warranty services through
this process.
Step 2: Ordering Plant raises Purchase Order

Ordering plant raises a installation/warranty service purchase order. For more information, refer to the Purchase
Step 3: Create service agreement

Sales section creates a service agreement in the system by entering all required information into SAP system.
Note, the system will require an entry for the agreement start date and end date. The value entered here can be
amended again at a later stage when the actual installation date is known.

SVS ADM MD
Order ~ $1000 O X
$1001 ~ $5000 O O X
$5001 ~ $20000 O O O O O X
$20001 ~ O O O O O O X
Order
(Stock In)
Decrease of Margin
$1001 ~ $5000 O O O O O X
$5001 ~ O O O O O O X

04/19/06 S34-Inter Company Installation_Warranty_Service Agreement.doc Page: 1
$1001 ~ $10000 O O O O O X
$10001 ~ O O O O O X X
customer/supplier
Delivery ALL O X
& Export Invoice)
Invoice)
O = Check
X = Authorization
confirm the service agreement. If the service agreement order is rejected, all documents concerned are to return
to the sales section.

When checking is completed, Admin creates billing document to ordering plant.
Step 6: Create invoice list

An invoice list allows NS to create, at specified time intervals (as indicated in the service agreement), a list of
billing invoices to send to the ordering plant.
The billing invoices in the invoice list can be single or collective documents (collective invoices combine items
from more than one delivery). In the case of NS it’s collective. NS uses this step when doing billing for warranty
services.


and item number.

Responsibility
Sales Section
Admin Section

Start
Order plant raises outline

Ordering Plant agreement
Ordering plant raises

purchase order
Create
Service Agreement

Check and Approve engineers.
Service Agreement
Post service hours

Installation Done and referencing service contract
Verified and item no.

Create Billing Document referencing service contract
and item no.
Installation
OR
Warranty Warranty Settle cost to CO-PA for
Installation reporting at month end.
Create Invoice List End
NSHS

Every month according to the billing plan, one billing document is generated to capture sales of warranty. Then a
cumulated billing for the first six months of warranty will be generated. And another cumulated billing for the last
six months of warranty will be generated at the end of warranty period. In another company, it will be captured as
an invoice receipts every six months.
SAP Settings
• Invoice List
• Periodic billing


ZSA ???


See Also
a) Installation/Warranty Service Agreement
b) Chargeable Service

Nissei Sangyo S35-On Call Service.doc– Business Procedure Overview
On Call Service
What
Services sold under this process are services not covered under the service agreement (please refer to Service
Agreement BPP or Inter Company Service Agreement BPP), or, services where the warranty period has expired.
The table below shows the conditions NSHS requires before doing a chargeable service.
Sales Order Entry

Chargeable Service 1. NSHS Engineer A fact of receipt of PO from 1. Original PO from customer
customer 2. Service Claim to Customer
3. Service report acknowledge
by customer

SHS
3. Service claim to Customer
Invoicing
Chargeable Service 1. NSHS Engineer A fact of service done by the 1. Original PO from customer
respective engineer 2. Service Claim to Customer
by customer
2. SHS Engineer A fact of service done by the 1. Original PO from Customer

respective engineer (NSS/NST/SHC)
SHS
4. Invoice from SHS
When
When NSHS needs to provide services not covered under the service agreement (please refer to Service
How
Step 1: Customer Request for Service
Customer calls in for request of service
Step 2: Engineers Perform Service

NSHS dispatches their engineers to the site to do the necessary services.
Step 3: Receive Service report from Engineers

Once the service is completed, the engineers will submit a service report.

04/19/06 S35-On Call Service.doc Page: 1
Step 4: Create Service Claims (quotation)

Sales section creates service claims(quotation) in the system by entering all required information into SAP system.
Quotation will be printed for checking and approval process.
Step 5: Customer Verifies and Approve Service Claim(quotation)

The service claim created earlier on is sent to the customer for verification and approval.
Step 6: Customer raises PO

Customer raises PO to NSHS upon approval of the service claim.
Step 7: Create Service Order

Sales section creates service order in the system by entering all required information into SAP system. Service
Step 8: Check and approve Service Order

SVS ADM MD
Order ~ $1000 O X
$1001 ~ $5000 O O X
$5001 ~ $20000 O O O O O X
$20001 ~ O O O O O O X
Order
(Stock In)
Decrease of Margin
$1001 ~ $5000 O O O O O X
$5001 ~ O O O O O O X
$1001 ~ $10000 O O O O O X
$10001 ~ O O O O O X X
customer/supplier
Delivery ALL O X
& Export Invoice)
Invoice)
O = Check
X = Authorization
confirm the service order. If the service order is rejected, all documents concerned are to return to the sales
section.


When checking is completed, Admin creates billing document referring to the service order.


and item number.

Responsibility
Sales Section
Admin Section

Start
Customer request
for service
Engineers performs
service
Receive Service Report

from service engineers On Call Service
Create
Service Claims (Quotation)
Customer verifies and

approve service claim
(quotation)

Customer raises PO Staff Claims from service
engineers.
Create
Post service hours
Service Order
referencing service order
and item no.
Check and approve

service order
and item no.
Create Billing document Settle cost to CO-PA for

reporting at month end.
End

SAP Settings

ZSVC Service Order

ZSVC Service Order


ZSVC Service
See Also
a) Inter Company Installation/Warranty Service Agreement
b) Installation/Warranty Service Agreement

Nissei Sangyo S36-Customer Own Inventory.doc – Business Procedure Overview
Customer Own Inventory
What
Currently this process applies to NSTH only. NSTH orders the goods from the supplier and the supplier sends the
goods to NSTH premises. These goods that have been sold to the customer are not immediately delivered to the
customer, instead, these goods, which now belong to the customer is kept in NSTH warehouse until the customer
needs it. Though it still sits in NSTH warehouse, NSTH will continue to bill the customer but the customer will only
make payment to NSTH according to the quantities they take delivery of. Non-valuated plant will be introduced in
this process.
When
When NS and the customer agree upon an outline agreement for sale of products through this process. There
after, customer fulfills this contract by placing sales order to NS.
How

Step 3: Quotation Approve


NS and the customer agree upon an outline agreement for sale of products through this process.



Manager
Sales Order
S$ 0 ~ S$ 100 000 Θ
S$100 001 ~ S$ 1 000 000 O Θ
S$1 000 001 ~ S$ 2 000 000 O O Θ
S$2 000 001 ~ S$ 3 000 000 O O O Θ
S$3 000 001 ~ O O O O Θ

04/19/06 S36-Customer Own Inventory.doc Page: 1
Miteihin
S$0 ~ S$ 200 000 O O O Θ
S$ 200 001 ~ O O O O Θ
Loss
S$0 ~ S$ 3000 Θ
S$3001 ~ S$ 5000 O O Θ
S$5001 ~ S$ 10 000 O O O Θ
S$10 001 ~ O O O O Θ
Sales Reduction
S$0 ~ S$ 30 000 Θ
S$30 001 ~ S$ 50 000 O O Θ
S$50 001 ~ S$ 100 000 O O O Θ
S$100 001 ~ O O O O Θ

the system.

Step 9: Goods Receipt (GR)


Step 11:Invoice Verification (IR)


When customer take delivery of the goods, delivery note to customer will be generated referring to sales order.
Responsibility
Sales Section
Admin Section

Start
Quotation No Customer raise a PO

Needed?
Yes
Create Sales Order

Yes
Check and approve

Quotation sales order
Approve?
Yes
No
Initiate Purchase
Need to revise Requisition
quotation
Create
Purchase Order
Goods Receipt
No
End

Goods receipt will be done in non-valuated plant automatically.
SAP Settings
•

ZCOI Customer Owns
Inventory

ZCOI Customer Owns
Inventory



LF ???


F2 Invoice

F2 ???
• Billing Copy Control
See Also
a) Purchase Order Processing
b) Goods Receipt
c) Invoice Verification

Nissei Sangyo Overhaul/Scheduled Service – Business Procedure Overview
Overhaul/Scheduled Service
What
Services sold under this process are services not covered under the service agreement (please refer to Service
The table below shows the conditions NSHS requires before doing a chargeable service.
Sales Order Entry

Chargeable Service 1. NSHS Engineer A fact of receipt of PO from 1. Original PO from customer
customer 2. Service Claim to Customer
by customer

SHS
Invoicing
Chargeable Service 1. NSHS Engineer A fact of service done by the 1. Original PO from customer
respective engineer 2. Service Claim to Customer
by customer
2. SHS Engineer A fact of service done by the 1. Original PO from Customer

respective engineer (NSS/NST/SHC)
SHS
4. Invoice from SHS
When
When NSHS needs to provide services not covered under the service agreement (please refer to Service
How
Step 1: Customer Request for Service
Customer calls in for request of service
Step 2: Create Quotation

Step 3: Customer Approve Quotation

If customer is happy and satisfied with the quotation, customer will proceed to raise PO to NSHS, else, customer
may require NSHS to re-quote.

04/19/06 S37-Overhaul_Scheduled Service.doc Page: 1
Step 4: Create Service Order

Sales section creates service order in the system by entering all required information into SAP system. Service

SVS ADM MD
Order ~ $1000 O X
$1001 ~ $5000 O O X
$5001 ~ $20000 O O O O O X
$20001 ~ O O O O O O X
Order
(Stock In)
Decrease of Margin
$1001 ~ $5000 O O O O O X
$5001 ~ O O O O O O X
$1001 ~ $10000 O O O O O X
$10001 ~ O O O O O X X
customer/supplier
Delivery ALL O X
& Export Invoice)
Invoice)
O = Check
X = Authorization
confirm the service order. If the service order is rejected, all documents concerned are to return to the sales
section.
Step 6: Job complete, issue service report

When the job is done, the service engineers will submit a service report to the customer.
Step 7: Customer acknowledges service report

Customer verifies and acknowledges the service report submitted.
Step 8: Update Service Order

There are times when the cost of the actual service done is different from the value stated in the service order.
Therefore, before admin can bill the customer, Sales section would have to amend the service order and get it
approved again.


When checking is completed, Admin creates billing document referring to the service order.


and item number.

Responsibility
Sales Section
Admin Section

Start
Customer request
for service
Overhaul/Scheduled
Service
Create
Quotation
Yes
Customer No
Need to requote?
approve quotation?
Yes
No
Customer raises PO

Create
Service Order
engineers.
Check and approve

service order
Post service hours
and item no.
Job Complete, issue

service report to customer

and item no.
Customer acknowledges
service report
Settle cost to CO-PA for

reporting at month end.
Update Yes Update

Service Order Service Order?
No
Check and approve

Create Billing document End
service order

SAP Settings

ZSVC Service Order

ZSVC Service Order


ZSVC Service
See Also
a) Inter Company Service Agreement
b) Service Agreement


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Nissei Sangyo S01-Condition Records.

doc – Business Procedure Overview

Business Procedure Overview:

Step 2: Create Condition Record

Last changed on: Version 1.0

Business Procedure Flow.

Condition Records requires

Update Condition Record

Last changed on: Version 1.0

Last changed on: Version 1.0

Customer-Material Info Records

Business Procedure Overview:

Step 2: Create Customer-Material Info Records

Last changed on: Version 1.0

Business Procedure Flow.

Last changed on: Version 1.0

Last changed on: Version 1.0

Business Procedure Overview:

Step 1: Demand Forecast

Step 2: Review the Demand Forecast

Step 3: Released for Material Planning

Last changed on: Version 1.0

Business Procedure Flow:

Review the Demand

The following table is calculation table for The Demand Forecast.

Demand Forecast N n+1 n+2 n+3 n+4 n+5

MRP n n+1 n+2 n+3 n+4 n+5

Last changed on: Version 1.0

Last changed on: Version 1.0

Business Procedure Overview:

Step 1: Customer ask for quotation

Step 2: Create quotation

Step 3: Approved Quotation

Step 4: Customer raises an order

Step 5: Check terms and conditions

Step 6: Create sales order

Step 7: Check and approve trade

Contents Sales Admin Admin Admin Managing

Last changed on: Version 1.0

S$3 000 001 ~ O O O O Θ

Step 8: Create delivery document

Step 9: Create billing document

Last changed on: Version 1.0

Business Procedure Flow.

Quotation No Customer raises an order

Check terms and

Quotation Create Sales Order

Need to revise Check and approve

Create Delivery Document

Create Billing Document

Last changed on: Version 1.0

• Revenue Account Determination

Doc Type Description Comments

• Sales Document Number Ranges

Doc Type Number Ranges Comments

• Sales Copy Control

Doc Type Description Comments

• Delivery Document Number Ranges

Doc Type Number Ranges Comments

• Delivery Copy Control

Last changed on: Version 1.0

Doc Type Description Comments

• Billing Document Number Ranges

Doc Type Number Ranges Comments