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Order to Cash with Packing and Transport Management

SAP Best Practices for Apparel and Footwear (India)

SAP Best Practices

Scenario Overview 1
Purpose, Benefits and Key Process Flows:
Purpose
Demonstrates how to process a standard AFS order including packing, shipping and billing the shipping. The scenario contains additional R/3 standard and AFS-specific functionality ATP, check on batch level Pricing conditions No-Seasonality Allocation Run (unrestricted used stock) Delivery with picking and packing Shipment Creation Freight cost determination Billing of sales order including freight

Benefits

Transportation planning and transportation execution monitoring Transportation cost calculation, and settlement.

Key process flows covered


Creating Sales Order (For Customer that will Pay for Freight ) Order Confirmation Allocation Run Creating Delivery for your Sales Order, Pick and Pack Creating the Shipment Determining Shipment Cost Billing including Freight Cost

Scenario Overview 2
SAP Applications Required and Company Roles:
Required

EHP3 for SAP ERP 6.0

Company roles involved in process flows

Sales Administration Warehouse Clerk Transportation Planning Sales Billing

Scenario Overview 3
Detailed Process Description:
Order to Cash with Packing and Transport Management

An order confirmation after sales order creation can be created and printed. During Sales Order Entry ATP allocates existing stock only temporarily. So we need to do Allocation Run to allocate stock to sales orders finally. The A-Run will put the status F (fixed) if the fulfillment rate is fulfilled. The allocation of goods is necessary to create a delivery note. Delivery is executed on the basis of the sales order after A-Run. Then, the quantity of the material is completely picked manually, Packing is performed using the packing proposal which will automatically perform a two level packing: The ordered materials will be packed into cartons, the cartons will be packed on pallets. Check the IDOC to inform the customer about shipping gets sent by EDI (Electronic Data Interchange). After the completion of picking and packing, the warehouse clerk need to create a shipment to assign a forwarding agency to the shipment of delivery. Freight cost estimate is performed automatically. Then,the warehouse clerk will have to systematically relieve the inventory. This relief of inventory is the actual recording of the physical quantity that is being shipped to the customer. This results in the recording of the cost of goods sold in financial accounting. With the collection of the goods by the forwarding agent the logistics part of the process is complete. Then Transportation planning need to calculate the freight costs and create Shipment Cost document. Once the inventory has been relieved, the cost of goods sold is recorded in Management accounting. At the same time, Freight costs is calculated and will be included in the invoice to the customer. Subsequently the delivery can be invoiced and the revenue is recorded in management accounting. The final step of this document describes how invoices are posted, customer statements are prepared and printed, and the incoming payments are recorded, and then cleared to make sure that the open customer account balance is reconciled.

Process Flow Diagram


Order to Cash with Packing and Transport Management
Event
Customer Needs to Buy Product

Customer

Order Confirmation

Delivery Note

Billing Document

Sales Administration

Sales Order Entry

Order Confirmation(Print Sales Order) Output with EDI? Allocation Run No Yes Check IDOC Processing for Shipping Notification

Wareho use Clerk

Create Delivery plus Picking and Packing

Create & Complete Shipment Document

Post Goods Issue

Inventory COGS

Sales Billing

Billing including Freight Cost

Accounts Transpor tation Receivable Planning

Determine Shipment Cost

ARIncoming Payment (157)

Closing Operations SD (203)

AR= Accounts Receivable, COGS = Cost of Goods Sold

Legend
Symbol Description Usage Comments
Role band contains tasks common to that role.

Symbol

Description

Usage Comments

<Function>

Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role. The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario. External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.

Diagram Connection

To next / From last Diagram: Leads to the next / previous page of the Diagram

Flow chart continues on the next / previous page

Hardcopy / Document

Hardcopy / Document: Identifies a printed document, report, or form

External to SAP

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario. Flow line (dashed): Line indicates flow to infrequentlyused or conditional tasks in a scenario. Line can also lead to documents involved in the process flow. Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario

Connects two tasks in a scenario process or a non-step event

Financial Actuals: Indicates a financial posting document

Financial Actuals

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Business Activity / Event

Does not correspond to a task step in the document

Budget Planning: Indicates a budget planning document

Budget Planning

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario

Corresponds to a task step in the document

Manual Process: Covers a task that is manually done

Unit Process

Manual Proces s
Process Reference: If the scenario references another scenario in total, put the scenario number and name here. Corresponds to a task step in the document

Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow. Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines

Process Reference

SubProcess Reference

Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here

Corresponds to a task step in the document

Existing Version / Data

Existing Version / Data: This block covers data that feeds in from an external process

Proces s Decisio n

Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.

Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution

System Pass/F ail Decisio n

System Pass / Fail Decision: This block covers an automatic decision made by the software

Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.