Week 2 Unit 1:

Selling a Product
Selling a Product
Process Flow – Selling a Service

Handling Processing Creating Processing

Creating Sales Creating Sales
an Incoming Service Customer Receivables
Quote Order
Customer Inquiry Confirmation Invoice and Payments

The sales The sales When the quote is The service The accountant The accountant
representative representative accepted by the performer confirms creates an then processes
handles an creates a sales customer, the the service invoice for the the incoming
incoming inquiry quote and shares sales requested by the service payment
via various input this customer representative customer performed
channels creates a sales
order

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Selling a Product
Valuation of Internal Service Confirmation

Service
Confirmation

Service
Performer Service

Job Cost Center

1. Priority: 2. Priority: Resource

Job-Specific Cost Center-Specific Determination
Labor Resource Labor Resource

2. Priority: Cost Rate

1. Priority:
Company-Wide Determination
Resource Cost Rate
Service Cost Rate

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Selling a Product
Process Flow – Sell from Stock

Handling Processing Creating Processing

Creating Sales Creating Sales
an Incoming Outbound Customer Receivables
Quote Order
Customer Inquiry Delivery Invoice and Payments

The sales The sales When the quote is The warehouse The accountant The accountant
representative representative accepted by the manager posts creates an then processes
handles an creates a sales customer, the goods issue and invoice for the the incoming
incoming inquiry quote and shares sales processes the service payment
via various input this with the representative outbound delivery performed
channels potential creates a sales
customer order

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Selling a Product
Revenue Recognition

 Revenue to be recognized when they are realized or realizable, and are earned,
irrespective of whether cash has been received or not
 Accrual methods contain rules that define how the system recognizes the revenue
 Accrual methods supported for sales order –

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Selling a Product
Role of Accrual Method

Sales Delivery Invoice Sales Delivery Invoice

Order Order

Accrual Method Balance Sheet

assigned

Revenue Recognition

P&L P&L

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Selling a Product
Postings (With Accrual Method Recognize at point of delivery)

Internal Services Deferred CoGS Unbilled Receivables Deferred Revenue

(2) 200 (1) 200 (1) 200 (2) 200 (2) 250 (4) 250 (4) 250 (3) 250

Receivables Sales Revenue

(3) 250 (2) 250

Sales Order created for 10h with Net Value = 500 (List price – 50/1 h)
(1) Internal Service confirmation for 5h created (cost rate determined as 40/1 h )
(2) Revenue Recognition performed
(3) Invoice created for 5h
(4) Revenue Recognition performed

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Selling a Product
Demo

SAP Business ByDesign System

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Selling a Product
Key Benefits

 Built in analytics enables a drill down to the

profit and loss result alongside dimensions
like products, customer groups and
distribution channels
 Early margin information based on sales
orders explain the decline/increase of sales
growth
 Scalable process for revenue recognition
supporting different accounting principles

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Thank you

Contact information:

open@sap.com
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