Sales Order Management



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Pertemuan 9 Sales Order Management KA2113 Enterprise Resource Planning Dasar Semester Ganjil 2014/2015 Disampaikan oleh: <<Nama>> <<email>> "Hanya dipergunakan untuk kepentingan pengajaran di lingkungan Telkom University" Disusun oleh: Magdalena Karismariyanti, S.T., M.B.A magdalena@tass.telkomuniversity.ac.id D3 Komputerisasi Akuntansi Telkom University, Bandung 2014 dac.telkomuniversity.ac.id

AGENDA Reference: Monk, E., & Wagner, B. (2009). Concept in Enterprise Resource Planning Third Edition. Boston, Massachusetts: Course Technology Cengage Learning.. SAP. (2006). SAP01: SAP Overview. SAP AG. Marketing Information Systems And The Sales Order Process Deskripsi dan kegiatan tiap proses dalam siklus/proses bisnis Komponen Integrasi dengan komponen lain Elemen organisasi yang terkait proses ini Master data yang terkait proses ini Transaksi tiap proses Dokumen hasil transaksi

Overview of Sales Process In non ERP system and in ERP System

Fitter Snacker Inc. is a small manufactures of snack bars. The Fitter Snacker (FS) core business is to manufacture and sells two types of nutritious snack bars: NGR-A and NGR-B.

NGR-A contains Vitamins and Minerals: important nutrients Dry Base Mixture: oats, wheat germ, protein powder, and spices Wet Base Mixture: honey and canola oil Carob chips Raisins NGR-B contains Vitamins and Minerals: important nutrients Dry Base Mixture: oats, wheat germ, protein powder, and spices Wet Base Mixture: honey and canola oil Hazelnuts Dates

Sales Force is organized into 2 groups: 1. Wholesale Division sells to intermediaries who distribute the bars to small shops, vending machine operators, and health food stores. 2. The Direct Sales Division sells directly to large grocery stores, sporting goods stores, and other large chain stores.

1. Wholesale Division Offering term: Lower fixed price because the orders are usually large. Invoice term: (2 10/net 30). 2. The Direct Sales Division Offering term: volume discounts to encourage larger sales orders. Invoice term: (2 10/net 30).

Sales Process in FS s Problems Problems: Incorrect pricing, excessive calls to the customer for information, delays in processing orders, missed delivery dates, and so on. Cause: Separate information systems throughout the company for three functional areas: the sales order system, the warehouse system, and the accounting system.

Sales Process in FS s Problems Due to separate/unintegrated information systems, information shared through file transfers dan manually by paper printout

1. Sales Quotations and Orders 2. Order Filling 3. Accounting and Invoicing 4. Payment and Return

Sales Process in FS s Problems 1. Sales calls or Visit customers 2. Create handwritten quotation 3. Original sheet SALES PERSON 5. Bottom sheet for salesperson record 4. Middle Sheet faxed/mail to sales office 6. Call for an order IN OFFICE SALES CLERK

Sales Process in FS s Problems 1. arithmetic error in the sales quotation 2. Information Repetition duplicate order 3. ineligible document (faxed copy of handwritten form)

Sales Process in FS s Problems 6. Call for an order IN OFFICE SALES CLERK 8. Estimate shipping date 7. Shipping form the inventory or shipping delayed for future production WAREHOUSE

Sales Process in FS s Problems Warehouse person can only estimate shipping date 1. too busy to make an inventory count, 2. total all orders waiting to be filled, and 3. find out how many orders are in process in the sales office

Sales Process in FS s Problems 13. Reduce the amount of the order, prepay, or dispute the amount of credit granted? IN OFFICE SALES CLERK (below amount) 9. Determines the shipping method and time to deliver 10. Check credit status (new customer) 11. Fill out Credit-Check form 12. Customer s credit limit ACCOUNTING

Sales Process in FS s Problems IN OFFICE SALES CLERK 11. Check weekly paper report 9. Determines the shipping method and time to deliver 10. Check credit status (exsisting customer) ACCOUNTING

Sales Process in FS s Problems IN OFFICE SALES CLERK 14. Current order entry system 15. Stores the customer s order data for sales analysis 16. Prints out a packing list and shipping labels for warehouse 17. produces a data file of all current transactions for the Accounting-Dept 18. Data file is copied to a disk and entered into a PC-based accounting software program on Mondays, Wednesdays, and Fridays

1. Sales Quotations and Orders 2. Order Filling 3. Accounting and Invoicing 4. Payment and Return

Order Filling in FS s Problems 2. Hand-carried list & Label IN OFFICE SALES CLERK 1. Print picking List & Shipping Label at noon and the end of the day. 5. Transfer display boxes PRODUCTION WAREHOUSE 3. Hand-sorted (small order and large order) 4. Produce display boxes for promotion

Order Filling in FS s Problems ORDER PICKER 10. Bring it to packing area 11. Packed, labeled, & prepare for shipping 6. Get the display box (if not enough) 7. Break open shipping case 8. Inform opened shipping case PACKING WAREHOUSE 9. Update inventory record 12. Data entry to PC at daily basis based on production record, packing list, and additional data

Order Filling in FS s Problems Problems: 1. Compare physical inventory vs inventory record on PC. 95% accuration level but please note inventory levels for food is fairly low. 2. Not enough stock for desired snack. 3. If customer want partial shipment, order picker have conversation with warehouse spv, production spv, and sales order clerk. 4. Warehouse spv contact sales order to notify changes to customer & accounting dept to change invoice.

1. Sales Quotations and Orders 2. Order Filling 3. Accounting and Invoicing 4. Payment and Return

Accounting and Invoicing in FS s Problems 1. Send sales order data for customer invoices three times a week IN OFFICE SALES CLERK 3. Clerks manually make adjustments for partial shipments and any other changes ACCOUNTING 2. Loads the data into the PC-based accounting program 4. Completed invoice

Sometimes, order corrections are delayed and don t catch up to the invoicing process, resulting in late or inaccurate invoices.

Accounting and Invoicing in FS s Problems 5. Notify of partial shipment WAREHOUSE ACCOUNTING 4. Completed invoice 6. Prepare new invoice

An invoice is eventually sent to the customer, separate from the shipment.

1. Sales Quotations and Orders 2. Order Filling 3. Accounting and Invoicing 4. Payment and Return

Payment in FS s Problems Within (2 10/net 30) Pass due If errors in sales process, customer will receive an incorrect invoice! Errors result if the correct customer s account isn t credited 1. FS sends a dunning letter 2. if payment hasn t already been sent 3. Threatening dunning letter! damage goodwill with both new and repeat customers

Return in FS s Problems 2. Returned material authorization (RMA) 4. RMA number 3. Completes a handwritten returned material sheet 1. Snack bar exceed Sell by date

Return in FS s Problems 4. RMA number 5. RMA number ACCOUNTING 6. Credit the appropriate account! Many customers do not call for the RMA number, or fail to include it with their returned material, which makes it more difficult for the Accounting department to credit the appropriate account

Many customers do not call for the RMA number, or fail to include it with their returned material, which makes it more difficult for the Accounting department to credit the appropriate account

Go To SAP01 : SAP Overview Unit 4 Lesson Sales Order Management

Agenda Lesson: Logistics Procurement Sales Order Management Production 34

Lesson: Sales Order Management Lesson Overview Explain Sales Order process How sales order process is integrated within other solution Lesson Objectives Outline the tasks associated with sales order management Explain how SAP within mysap ERP supports the key processes in sales order management

Sales Order Process Overview

Pre-Sales Activities Promotion activities Inquiries Quotation

Sales Order (SO) Adopt information from pre-sales activities. Sales Order(SO) Sales scheduling agreement or sales contract are created with reference to a SO

Sales Order During SO creation, system carry out basic function: Monitoring Sales transaction Checking for availability Transferring requirement to MRP Scheduling delivery Calculating pricing and taxes Checking credit limit (per year limit) Creating printed or electronically transmitted document

Sales Order Basic function can be automated or manual processing. Data result form basic function is stored in sales document.

Availability Check Availability material can be checked to confirm the customer s requested delivery date.

Outbound delivery Shipping is an important part of logistics chain Outbound Delivery (Surat Jalan)

Delivery In shipping processing, delivery procedure can be made: General business agreement Recording special material request Define shipping condition

Delivery Shipping module function: Deadline monitoring for reference document due for shipment Creating and processing outbound deliveries Packing deliveries Information support for transportation planning Supporting foreign trade requirement Printing and transmitting shipping document Processing goods issue Deliveries currently in process Activities that are still to be carried out Identifying possible bottlenecks

Delivery Document to support delivery process Outbound Delivery(Surat Jalan) shipping activities (picking, packing, transportation and good issue)

Delivery How to create outbound delivery document? With reference to SO doc With reference to stock transport order With reference to subcontract order With reference to a project Without any reference

Transportation Setting: Transportation media Route Checking point Picking Point

Picking/Packing/Shipping Transfer Order (Document from sales to warehouse)

Picking Ways to do picking Automatically (During OD Creation) Routinely (at certain time) Manually (via employee request)

Goods Issue Basis of Goods Issue posting is Outbound delivery Any changes in Good issue posting should be made in Outbound delivery

Good Issue Posting Good Issue for OD function include: 1. Warehouse stock of material is reduced by delivery quantity 2. Value change are posted to balance sheet account in inventory accounting 3. Requirement are reduced by the delivery quantity 4. The serial number status is updated 5. Good issue is posting automatically recorded in the document flow 6. Stock determination is executed for the vendor s consignment stock 7. A work list for the proof of delivery is generated

Good Issue Ways to post GI Automatically (During OD Creation) Routinely (at certain time) Manually (via employee request)

Final stage in SO processing Billing

Billing Billing function include 1. Creation of invoices based on deliveries/service 2. Issue of credit and debit memo and pro forma invoice 3. Canceling billing transaction 4. Comprehensive pricing function 5. Issue rebate 6. Transfer billing data to financial accounting

Billing How to create billing document? With reference to SO doc With reference to a delivery doc With reference to external transaction

Billing How to create billing document? Cont Automatically for billing due list as background task Manually for work list Explicitly creating billing document Collective billing document from several SO Invoice split

Billing How to create billing document? Cont Automatically for billing due list as background task Manually for work list Explicitly creating billing document

Billing and Financial Accounting Account affected Customer A/R GL (eg. Cash clearing account) Revenue Sales deduction Accruals (for rebate agreement) Accrual account Accrual clearing account

Create Change Billing Delete Billing document

Payment Processing

Doc: Delivery Order Exercise 4-5 no.1 Sales Order Mgmnt Process Summary Exercise 5-3 0. Pre Sales Activity Doc: Inquiry, Quotation Exercise 4-6 Doc: Sales Order Exercise 4-4 Doc: Good Issue Doc Exercise 4-5 no.2 Doc: Transfer Order

End of This Session