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Sales Document vs.

Sales Order:-

Structure of Sales Order:-

Each order contains

- One Header

- One or more items

- Each Item may have zero or one or more Schedule lines.

Technically, we can still have an order without any line items (and ofcourse w/o schedule lines). But that
does not happen in real time.

Application Tool Bar:-

Navigate to header data:-

Navigate to Item data:-
Navigate to Schedule Line:-

Gives information about schdule of the delivery

Sales Order – Header - Additional Data A:-

Customer group 1 to 5 comes from sold to customer sales org. additional data.

Condition group 1 to 5 comes from sold to customer general additional data.

Sales Order – Item - Additional Data A:-

Material group 1 to 5 comes from Material – Salse org 2 view.

Condition group 1 to 5 comes from sold to customer general additional data.

Business Significance of Important Fields:-

Order Number – why not alphanumeric => Ton of restrictions on it in terms of easy of use, user exits or
customization you have to do.
PO Number – PO created by the customer. It is used to cross reference the sales order number to
customer PO number.
Net Value :- Could be before or Tax (Ideally before the tax).

PO Date :- Date on which you received PO from the customer. You can back date the PO date.

Suppose, Walmart sent the order at quarter end (Apr to June) on June 30 th which is Friday.

HP created the sales order on 3rd July (Monday).

HP sent the order confirmation back to Walmart where one of the fields is PO date. Here PO date should
not be 3rd Jul rather 30th June.

Because the budget is granted to Walmart only for Apr to Jun quarter. So, if you change the PO date,
then it will be a problem for your customer.

Partner Functions:-

A partner function is an entity or a stakeholder responsible or has a stake (financial or informational etc)
in the transaction.

Distributor Vs Reseller:-

A distriutor (wholeseller) does imply a closer relationship with the manufacturer. Essentially, a distributer
buys directly from the maufacturer and sells to either resellers or, sometimes, the end user directly. A
reseller usually buys from a distributor to get the best deal and sells directly to the end user.

Manufacturer -> Wholeseller (Distributor) -> Reseller -> End user.

Cooperative buyer – ensures distributor gets the best deal.

Siva Inc needs 100 PCs, 100 desks, 5 routers, 3 servers, some bunch of softwares etc. With this
requirement, you can’t go to any one company like HP or CISCO and buy all these. You have to go to a
service provider or a consulting firm or an infrastructure firm who can do all of these for you in a very
integrated fashion. These are called Resellers or Value Added reselleres. Here, ABC consultants.

For ABC Consultants, Payer – XYZ Ventures (who gave loan to Siva Inc or who invested in it). Now ABC
consulatnts will source these different products from different companies – routers from CISCO, PCs from
HP etc. They might not directly deal with HP, but they might have a mediator / distributor to HP – Ingram
Micro. Here, Ingram Micro actually gives better prices for smaller resellers than HP does because of
volume of business they do.

For Ingram Micro, Ship to can be ABC Consultants (if ABC consultants adds some value added service and
install some softwares etc and then delivers to Siva Inc) or directly to Siva Inc – Fremont. Payer can be
either ABC consultants or XYZ Ventures. End user is Siva Inc who is actually consuming the goods. Why
we are capturing this end user here ? may be for reporting or audit purpose etc. Sales rep. Adam is
included here why ? may be for information purpose or for commission.

Requested Delivery Date:-

Date on which customer requested the delivery to happen.

System defaults it to certain date. But you can change it.

Complete Delivery:-

Whole order (all the line items) needs to be delivered completely.

By default, it comes from the customer master.

Delivery Block:-
Billing Block:-

Even after creating delivery of an order, if you feel the order needs not to be billed, then you can force a
billing block at order level.

Scenario :-

In general, you would place a billing block to make sure that you would not bill this customer before
ensuring that certain things are in place.

1> If customer wants goods to be received first at his premies and then billing to happen. Then
order and delivery will be created. Order will be put on billing block. We will wait till we get
confirmation from customer that goods are recevied by them. After that, we will rmeove the
billing block.
2> If you want to check price, tax etc. for a high value order, then you can put billing block.

Pricing Date:-

Determines the date on which pricing has to be taken.

We can back date and future date this one. Scenario – Say order is created today, you can change pricing
date for yesterday or tomorrow to give best deal to customer.

Note :- Except creation date, all other dates (RDD, Doc. Date, PO date, pricing date etc.) can be changed.

Incoterms – (International Commerce Terms):-

There is a general standard body who defines this.

It has 2 parts :-

INCO1 -> specifies certain internationally recognised proceedures that the shipper and the receiving
party must follow for the shipping transaction to be successfully completed.

INCO2 -> Specifies “up to what point”. For e.g. FOB means shipping is free but up to what point i.e. FOB
until Newyork (this can be dockward or port or warehouse of the customer).

Payment Term:-

A payment term defines how you will get paid – how customer is going to pay you. It is the schdule of
0001 => NET 0 => Pay immediately.

0002 => NET 45, 3% 14 days & 2% 30 days => Here 2% and 3% is the cash discount the customer gets if
he pays within the time line. Overall, you have to pay within 45 days.

This is additional cash discount as opposed to other discounts that are applied as part of your invoice.

Check with FI…How A/R is getting calculated based on this???? How this additional discount is given
and which GL it hits. Also, if customer does not pay within 45 days, then what will happen?

Reason For rejection:-

Customer places an order for 3 items. Then after 2 days, he calls and tells you to exclude 3 rd item. Then
you have 2 options – either delete the item from the sales order (which is not preferred) rather, you put
the reason for rejection for the item 3 and save the order.

Why deletion is not preferred => There is no option to capture the reason for deletion. Later, you can’t
take a report to see for last month how many orders were rejected for say poor quality or competation
Document Flow:-

Both at header level and line item level.

Identation means subsequent doc is created wrt previous doc (Parent – Child).
Order Combination:-

Orders (Order 1 & 2) will be combined into a single delivery provided they go to same customer on same
date (few conditions are met).

Check in the system – Create 2 orders and combine them into a single delivery.
Invoicing dates:-

If set weekly, then for all the deliveries, only one invoce or multiple invices (based on invoice split
criteria) will be created per week for that customer.

Check this in the system – how billing dates are getting impacted in case no calendar is maintained and
when calendar is maintained?

Billing Date:-
Account Assignment Category:-

Account assignment category is used to determine G/L account for customer for different Revenue, Taxes
and others.

For e.g. if company wants to post the revenue of material and services in different account, the same can
be handled through this. If customer is domestic, you post in domestic account and if he is a foreign
customer then can post in different account.

Check in the system – Create an invoice with revenue, freight, discount and taxes and check how they
are hitting the GL accounts. Also check if the invoice is cleared then can we cancel the invoice and
what will be the impact?

Here Profit Margin = PR00 (sales cost) – VPRS (COGS). But ideally, Sales cost = PR00 – MWST – SKTO.

Profit means after deducting all expenses from the selling price which includes freight, duties etc.


Text maintained at Customer level will flow to the Order header.

Text maintained at material level will flow to the order line item.

Text comes from Master data or Previous document (where it was entered by the user manually).

Additional Data B:-

It needs custom development.

Check in PR4 how this is used to create condition records

Can you delete a Sales Order:-

Yes => if no subsequent document (delivery/invoice etc) is there.

One order has 2 line items. Item 1 is not delivered and item 2 is delivered. Then you can delete item 1
and CANNOT delete item 2.

Prefered way :- Put Reason for rejection.

Availability check buttons:-

Header data Vs. Item data:-

Header data generally gets copied to all the line items. However, you can also make item specific

Case 1 :-

Header ship to => San Francisco. But Item 10 -> New York while item 20 -> SFO.

Case 2 :-

Header Payment term => NET 30. Item 10 -> NET 30 but Item 20 -> NET 45.