Sales Order Process

1. Create an Inquiry
An inquiry is a non-binding price quotation to a customer that tells them the price of a specific
quantity of your product. We will create an inquiry for ## West Hills Athletic Club. To do this,
follow the menu path:

Logistics > Sales and Distribution > Sales > Inquiry > Create

which will bring up the following screen:

Enter IN for Inquiry Type

Enter ##FS for Sales organization
Enter DI for Distribution Channel
Enter SB for Division
Then click on the Continue

Enter the information shown above, click the Continue the following screen will appear:

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##D100 (## West Hills) for Sold-to Party:

Enter WH1## in the Cust. Reference field, then
click on the Valid from field to display the search
icon, then click on the search icon ( ).

Clicking on the search icon will produce a calendar:

Double-click on today’s date

(which is highlighted) to enter it

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Today’s date is highlighted. Double-click on it to enter today’s date in the Valid from field.
Click on the Valid to field, then click on the search icon ( ) to call up the calendar again, then
double-click on a weekday approximately one month from today. When you are done, the
customer order screen should look like the following:

Check data, and then click on the first material field

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Enter ##F100 for Material and 5 for Order quantity,

then press the enter key

Enteri ##F100 for Material number and 5 for Order quantity, then press the enter key. If any
informational messages appear, just click on the Continue icon ( ) to clear them.

Notice that SAP has called up information about the Sold-

to party and Material from the database.
Select the first line then click on the item conditions icon
( )

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Select first line:

Then click on the item conditions icon ( ) and the following screen will appear:

Note discount, then click on the back icon

Because the standard price for 5 cases is $1,200.00 and ## West Hills Athletic Club receives a
5% price discount for any line item over $1,000 and a 10% discount for any line item over
$1,500, this inquiry includes a discount of $60. Click on the Back icon ( ) to return to
the Create Inquiry: Overview screen:

Select the first line, then click on the

Display availability icon ( )

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Select the line item again, and then click on the Display availability icon ( ) which will
produce the following screen:

This screen shows that number of cases that

are currently available to sell and where they
are located (storage location 300)

Note the quantity of ## NRG-A bars available and the storage location where they are
currentlylocated. Click on the Back icon ( ), then click on the Save icon ( ) to
save the inquiry. Click on the Back icon ( ) to return to the SAP Easy Access screen.

2. Create a Sales Order from an Inquiry

If the customer wants to place an order after receiving the inquiry, we can create a sales order
from the inquiry so that we don’t have to reenter the basic data (and, potentially, make a
mistake in doing so). To create a sales order from the inquiry, follow the menu path:

Logistics > Sales and Distribution > Sales > Order > Create

which will bring up the following screen:

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Enter OR for Order Type

Enter ##FS for Sales organization
Enter DI for Distribution channel
Enter SB for Division

Next, use the pulldown More→Sales Document→Create with Reference:

This will produce the following pop-up window:

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Click on the Inquiry tab

Click on the Search icon

Make sure you have selected the inquiry tab, and then click on the Search icon ( ) in the
Inquiry field to bring up the following pop-up window:

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Select the Sales documents by customer tab

Make sure SP (sold-to party) is entered
under the Partner function, ##FS is entered
for the Sales organization and 1 is entered
for Transaction group, then click on the enter
icon

To search for the inquiry, make sure SP is entered for the Partner function (sold-to party) and
##FS is entered for the Sales organization, then click on the enter icon ( ) and search results
similar to the following should appear:

If more than one inquiry appears, find the one

created by you by looking for your user id.
Double-click on the line to select your inquiry.

Double-click on your inquiry, and the inquiry number will automatically be entered:

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Inquiry number automatically entered

Click on copy

With the inquiry number entered, click on the copy icon ( ) and the following screen
will appear:

Enter WHP125## for Cust. Reference, press the

enter key then click on the Save icon ( )

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Information from the Inquiry has been entered automatically—sold-to and ship-to party
information, material and quantity. Enter WHP125## for purchase order number, press the
enter key, then click on the save icon ( ) to save the order.

Click on the Back icon ( ) to return to the SAP Easy Access screen.

3. Create Delivery for Sales Order

In the SAP ERP system, a delivery is a status that allows the warehouse to pick, pack and ship
the order. To create a delivery, follow the menu path:

Logistics > Sales and Distribution > Shipping and Transportation > Outbound Delivery >
Create > Single Document > With reference to Sales Order

which will bring up the following screen:

Enter ##SP for Shipping Point

The order number should be
entered automatically.
Click on the Continue

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The order number should be entered automatically. Enter ##SP for shipping point, then click
on Continue ( ) to bring up the following screen:

Click on the save icon to create the delivery

As we are happy with all of the default values, we can click on the save icon ( ) to create
the delivery. You should get a message like the following:

Click on the Back icon (. ) to return to the SAP Easy Access screen.

Stock/Requirements List

To see the current inventory position for our snack bars, we can use the Stock/Requirements
list. The stock requirements list shows the current inventory level, any outstanding sales orders
as well as any planned production orders. The stock/requirements list is very handy, and it is
usually a good idea to keep a session open so that you can easily view the Stock/Requirements
list without having to leave a session.

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First, we need to create another session for the Stock/requirements list. To do this, follow the
pull-down menu path:

SystemNew GUI Window

This will create a new session. To view the new session, look for it on the task bar at the
bottom of the screen and click on it.

When you are in the new session, you need to find the Stock/Requirements list. There are
many different menu paths that will get you there. One of the menu paths is:

Logistics > Production > MRP > Evaluation > Stock/Requirements List

which will bring up the following screen:

Enter ##F100 for Material and ##PT

for Plant, then click on the Continue

Enter ##PT for plant, then click on the Continue, which will bring up the Stock/Requirements
list:

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Note the current level of on-hand material and

your delivery (Delvry). Double-click on the
delivery line.

You should see enough material on hand to complete your order and your delivery should be
listed. You may also see deliveries from other students. You can see more details about the
delivery by double-clicking on the line with your Delivery. When you do, you will get the
following pop-up window:

Click on the Display

Element icon ( )

Click on the display element icon, and the ERP system will display the details of the delivery you
just created:

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From this delivery, we can see the documents that resulted in this delivery (inquiry and sales
order). In SAP, the Document Flow links all of the documents related to a particular sales
order. The document flow can be accessed by following the pull-down menu path:

MoreEnvironmentDocument Flow

which will produce the following screen:

The Document Flow shows the trail of documents for the sales cycle. For the ## West Hills
order, the cycle started with an inquiry which was used to create a sales order. The processing
status of the Inquiry and Standard order are shown as completed. The Outbound Delivery,
which encompasses the pick, pack and ship tasks, is shown as open.

From the Document flow, you can display any of the documents shown. For example, right-
mouse-click on the inquiry to call up the following pop-up menu:

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Click on the inquiry line, then click

on the Display document icon

Click on the inquiry line, then click on the Display document icon ( ) to display
the original inquiry that started the sales-order process:

The ability to link to any document in the sales process via the document flow is a powerful
tool. If a customer calls with a question regarding their sales order, the customer service
representative can quickly find any document related to the sales order once they have found
one document.

Use the Back icon ( ) repeatedly to return to the Stock/Requirements list.

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4. Picking the order
With the delivery created, the order can be picked, packed and shipped. The SAP ERP system
has many capabilities to schedule these processes, however, we will not consider those in this
exercise. In a highly automated warehouse, the picking of the order may be recorded in the
SAP system using bar code scanning. For our exercise, we will manually enter the quantity
picked.

To do this, switch back to the other session and follow the menu path:

Logistics > Sales and Distribution > Shipping and Transportation > Outbound Delivery >
Change > Single Document

which will bring up the following screen:

Your delivery number should automatically be entered. Click on the enter key to bring up the
following screen:

Click on the Picking tab, then

Enter 300 for SLoc (Storage location) and 5 for
Pick quantity, then click on the save icon.

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This screen allows you to enter a different pick quantity than what was in the order in case the
inventory in the warehouse does not match the inventory level shown in the system. Of
course, the idea with an integrated information system like SAP is to have 100% accurate, real-
time inventory information, but mistakes in entering and recording inventory transactions do
occur.

We will assume that the inventory is accurate and the order can be completed, so enter 5 for
Pick quantity and 300 for SLoc (Storage location), then click on the Save icon ( ). You
should get a message like the following at the bottom of the page:

Switch to the other session, which should still be showing the Stock/Requirements list. Click on
the refresh icon ( ) to see if picking the order has changed anything:

Storage location is now displayed

In case you haven’t noticed, the Stock/Requirements list is changed very little. While we have
picked the cases of snack bars off of the warehouse shelf in preparation for shipping, according
to the SAP system they are still Fitter Snacker’s snack bars. The only change is that the storage
location for the delivery is now shown. In the next section, we will post the goods issue, which
will signify that the snack bars have left the building.

5. Post Goods Issue

In the SAP logistics terminology, we receive goods into inventory and issue goods from
inventory to the production floor or to the customer. In the accounting world, we record

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business transactions by posting them to an account. Thus, when we post the goods issue, we
record the change in stock level and financial position of the company as a result of sending the
goods on their way. To post the goods issue, follow the menu path:

Logistics > Sales and Distribution > Shipping and Transportation > Outbound Delivery >
Change > Single Document

which will bring up the following screen:

The document number should be entered

automatically. Click on the Post goods issue icon.

After clicking on the Post goods issue icon, the following message should appear at the bottom
of the screen:

Switch to the other session, which should still be showing the Stock/Requirements list. Click on
the Refresh icon ( ) to see if picking the order has changed anything:

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Delivery is gone, and the inventory

level is reduced by 5 cases
Posting the goods issue has removed the Delivery from the Stock/Requirements list and
reduced the available inventory level by 5 cases.

Switch to the other session. You should be at the Change Outbound Delivery screen. If not,
follow the menu path:

Logistics > Sales and Distribution > Shipping and Transportation > Outbound Delivery >
Change > Single Document

Your delivery document number should be entered automatically. Follow the pull-down menu
path:

MoreEnvironmentDocument Flow

which will produce the following screen:

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Compare this document flow to the previous status. The outbound delivery status is now Being
processed, and the picking request and goods issue are both complete. Click on the Back icon
( ) until you are back at the SAP Easy Access screen. By now, your menus are
probably unwieldy because of the number of paths that have been expanded. To make the
menus easier to use, click on the SAP Menu icon ( ) to restore your menus to their original
configuration.
6. Invoice the Customer
Perhaps as important as delivering the customer’s order on time and in good condition is
properly billing the customer for their purchase. If we don’t invoice the customer, we aren’t
likely to be paid. Thus, it is important to be able to determine which customers still need to be
billed. WE can use the Billing Due List to see all of the customers that need to be invoiced. To
create the Billing Due List, follow the menu path:

Logistics > Sales and Distribution > Billing > Billing Document > Process Billing Due List

which will produce the following screen:

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Today’s date will show up automatically in

the to field. Enter a date a week in the past
in the Billing date from field.
Enter ##FS for Sales organization
Check both Order-related and Delivery-
related check boxes.

Enter the information shown above, then click on the Display Bill List icon ( ),
which will produce the following screen:

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Make sure the line is selected, and then click on Collective billing document

There should only be one item on the list. Select it, and then click on the Collective Billing
Document icon ( ). It won’t appear that much has happened, but an
invoice will be created. To confirm this, use the Back icon ( ) to return to the SAP
Easy Access screen. Follow the menu path:

Logistics > Sales and Distribution > Shipping and Transportation > Outbound Delivery >
Display

which will produce the following screen:

Your delivery document number should be entered automatically. Follow the pull-down menu
path:

MoreEnvironmentDocument Flow

which will produce the updated Document Flow:

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Click on the Journal Entry

line, then click on the
Display document icon

Notice that the status of the Outbound delivery is now completed. That is because the creation
of the invoice completes the Outbound delivery process. Notice also that an accounting
document has been created. Click on the Journal Entry line, then click on the Display
document icon ( ) and the following screen will appear:

Notice that three accounts have been affected by the invoice—## West Hills Athletic Club’s
account, the Sales Revenue account and the Sales Discount account. Click on the Back icon
( ) until you have returned to the SAP Easy Access screen.

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7. Receive payment from the Customer

Hopefully the invoice has prompted the customer to send in a payment for the snack bars they
have received. To post the customer payment, follow the menu path:

Accounting > Financial Accounting > Accounts Receivable > Document Entry >
Incoming Payments

which will bring up the following screen:

Enter today’s date for document date

Make sure ##FS is entered for company code
and USD is entered for Currency/rate
Enter 100000 for Account under bank data
Enter 1140 for Amount
OOD1OO Enter ##D100 for Account
Then click Process Open Items

After entering the data shown above and clicking on the Process Open Items icon
( ), you will get the following screen:

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Check to see if amount of payment has

been assigned to the accounts
receivable document. If not, double-
click on the USD Gross amount

The SAP system may or may not automatically assign the payment to the accounts payable
item. If not, Double-click on the USD Gross amount, and the system will assign the entire
payment to the invoice. Your screen should look like the following if the amount is correctly
assigned:

Double-click on the USD Gross amount until you achieve this result.

Click on the Post icon ( ) to post the payment, then click on the Back icon ( ) to

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return to the SAP Easy Access screen.

To view the document flow, follow the menu path:

Logistics > Sales and Distribution > Sales > Order > Display

which will again produce the following screen:

Your sales order number should be entered automatically. Follow the pull-down menu path:

MoreEnvironmentDisplay Document Flow

to display the document flow:

The document flow shows that the sales order process is complete.

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