Sales & Distribution: Sales Order Types:

Rush Order / Cash Sales:

• In addition to the standard sales order, there are also special order types, such as the rush order and the cash
sales.

• In cash sales the goods are paid for in cash.

• In a rush order transaction, the customer picks up the goods or you deliver the goods on the same day as the
order is placed. However, the invoice is created later.

Rush Order:

 The delivery and transfer order are automatically created.

 Billing document is created at a later time.
 Rush Sales is Delivery related Billing.

Cash Sales:

 The delivery and transfer order are automatically created.

 Billing will also be generated at the same date as soon as you save the delivery document.

 Cash sales are order related billing.

 Accounting document is cleared automatically (Customer Payment)

Rush Order/ Cash Sales:

Rush Order:

• In a rush order transaction, either the customer picks up the goods at your stores or you deliver the goods to the
customer address on the same day as the order is placed. However, the invoice is created and sent to the
customer later.

•  The rush order performs the same sales order tasks as described for the standard order but on saving the sales
order the outbound delivery in stores is immediately created

Cash Order:

•  In cash sales the goods are paid for in cash. The customer picks up the goods at your stores on the same day as
the order is placed. When the customer arrives to pick up the goods, you raise the Invoice and take the cash
payment from the customer.  The customer payment is entered onto the SAP system. 

• If u goto any super market first u pick up the item and then pay the bill and then u will get the bill this process is
cash sales

Difference between Rush Order & Cash Sales:

•  Cash Sales is order related billing whereas RO is delivery related.

 •  Cash sales is not relevant for availability check as u will be picking the goods whereas RO is relevant for
availability check.

•  Cash sales is also not relevant for credit management whereas RO is relevant credit management.

• Cash sales has one time customer account group where as RO normally doesn't.

• For cash sales order type is BV or CS and for RO it is RO

• Cash sales triggers petty cash a/c where as in RO customers account is debited.

• Cash Sales

– Petty Cash Account Dr.

– Sales Revenue Account Cr.

• Rush Order

– Customer Account Dr

– Sales Revenue Account Cr

•  Delivery and settlement will be done immediately in cash sales where as in RO only delivery will be done
immediately

Free of Charge Delivery:

 You can create free of charge deliveries for sending samples of your products to the customer. The system will then
generate a delivery based on the free-of-charge delivery.

Outline Agreement:

Meaning of Outline Agreement (Customer):

• Outline agreements are processes or documents used to allow a company to plan the business processes with
customers/vendors for a certain period of time, under specific conditions. 

• They play an important role in nearly all business processes. Customers and vendors agree on the goods to be
provided under certain conditions and within a specific period of time. Outline agreements streamline business
processes for both partners in a business relationship. 

• The two main Outline Agreements are Scheduling Agreement and Contracts:

Contracts and Scheduling Agreements:

• Contract and Scheduling agreement both are outline agreements.

• In contract 2 types of contracts are there. Value and Quantity contract.

• In Value contract you agree with the customer for certain value. While in the quantity contract you agree with
the quantity e.g. 20000 pcs.
 • Contact does not have the time period for delivering the goods it is given through the release order. While with
the scheduling agreement we agree with the customer to deliver the goods on the particular time for e.g.
7.8.2012 20000 pcs is given to customer.

Scheduling Agreement vs Contracts:

Scheduling Agreement Contracts

• Contracts cannot be delivered directly

• SA will be delivered directly; • There isn’t delivery dates or quantities; 

• SA has schedule lines which are MRP and
delivery relevant;
• SA have a validity period and it’s possible to
enter a target quantity;
They can have lots of schedule lines per item;
• Contracts do not have schedule lines;
• It’s mandatory to have a sales order assigned to
it; 

• The simplest and most common type used is • There are 2 types of contract: Value and
represented by doc type DS quantity

• Transaction codes: VA31 / VA32 / VA33 • Can cover both goods and services

• Transaction codes: VA41 / VA42 / VA43

Difference between Quantity Contract & Value Contract:

Quantity Contract Value Contract

 A value contract is a legal agreement with a cus
materials and services that the customer receiv
• A quantity contract is an agreement that your customer will order a
period, and for a value up to a specified target v
certain quantity of product from you during a specified period. The
contain certain materials or a group of material
contract contains basic quantity and price information but no
assortment module).
schedule of specific delivery dates and quantities
 
 
• Can contain group of materials/certain
• Specific to certain quantity of materials and price (100 boxes of
have a fixed price (Group Material XYZ u
Material A for 100 usd/box)
usd)
 
 
• Any price movements made outside the contract will not be affected.
• Any price movements made outside the
will just eat up the contract value.

Special Business Process:

Special Business Processes in Sales

In addition to carrying out routine sales order processing in the SAP Sales & Distribution module, you can also implement
more specialized business processes, such as the Customer Consignment, processing of make to- order items, third-party
business transactions, and configurable products.

Process Flow:

There are four main transactions for processing consignment stock in the R/3 System, all of which support separate
management of stock:

Creating a Consignment Fill-Up

Creating Consignment Issue

Creating a Consignment Pick-Up

Displaying Consignment Returns

Consignment Fill-up:

• Consignment fill-up order: The company owned stock at customer site has to be replenished. An order can be
triggered by a customer's call or report or even without any customer initiative.

• Outbound delivery: A delivery is created in order to transfer the goods to the consignment stock. Within the
delivery, the physical quantity is picked.

• GI consignment: After the goods have been picked, the delivery is posted for goods issue.

• Stock Overview: The goods are now in the customer's consignment stock. The stock overview will reflect the
transfer of products.

Consignment Issue:

Consignment issue order: The articles and quantities sold by the customer are entered.

Outbound delivery: An outbound delivery is created to reflect the material movement out of the companies
stock.

No physical picking is carried out, but the batches sold by the customer must be specified.

Goods issue: When the goods issue is created, the transfer from the consignment stock is carried out. This
means that the articles are no longer in the property of the company.

Invoice: Once the goods issue has been posted, the delivery can be invoiced. Appropriate accounting and
controlling documents are generated.
Consignment Pick-Up:

Consignment pick-up order: The consignment pick-up triggers the return of goods from the customer's custody.

Returns delivery for the order: For the shipment of the company's goods from the customer consignment stock
back to the warehouse, a delivery of the type LR (returns delivery) is created.

Goods movement (GR consignment return)

Consignment Return

Consignment return order: The consignment return triggers the return of goods from the consumer to
consignment customer.

Returns delivery for the order: For the shipment of the company's goods from the consumer to consignment
stock, a delivery of the type LR (returns delivery) is created.

Goods movement (GR consignment return):

Stock Overview: The goods are now again in the customer's consignment stock.

Credit memo: Once the goods receipts has been posted, the delivery can be invoiced. Appropriate accounting
and controlling documents are generated.