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Business Process Integration with SAP ERP Chapter 5

The Fulfillment Process

A Basic Fulfillment Process

Sales Organization

Responsible for

Distributing goods and services

Negotiating sales conditions

Product liability and rights of recourse

Used to divide the market based on geographic regions

Highest level of aggregation in sales-related reporting

A company code must have at least one sales organization

GBI Sales Organizations

Distribution Channel

Responsible for getting materials to customers

Used to

Differentiate distribution strategies or approaches

Different pricing, responsibilities

Wholesale sales, retail sales, Internet sales

Statistics and reporting at the DC level

A sales organization must have at least one distribution channel

GBI US Distribution Channels

Division

Used to consolidate materials with similar characteristics

Different sales strategies, pricing agreements

Statistics and reporting at the DC level

Associated with product lines

A sales organization must have at least one division

Can be assigned to multiple sales organizations

GBI US Divisions

GBI DE Divisions

Sales Area

Made up of three other organizational elements

Sales organization

Distribution channel

Division

GBI Sales Areas

Distribution Chain

A unique combination of sales organization and division

Some master data are maintained at this level

Material master

Pricing conditions

Plant

Manufacturing facility

Warehouse

Office

A company code must have at least be at least one plant defined in a company code.

A plant must be uniquely assigned to a company code.

A plant can be assigned to deliver products or services for multiple distribution chains.

Shipping Point

A physical location from which outbound deliveries are sent

Loading dock

Mail room

Rail depot

Group of employees (to handle expedited orders)

A plant must have at least one shipping point

A shipping point can be assigned to many plants

Shared Shipping Points

Multiple Shipping Points

Shipping Point Example

Segments Of Customer Master Data

Multiple Definitions of a Customer

Customer - Material Information Record

Intersection data for one customer and one material

Data specific to the combination of customer and material

Supersedes data in customer master and material master

Examples of data

Cross references customer material numbers, descriptions

Specific terms (e.g., shipping, tolerances, partial deliveries, delivering plant)

Alternate delivery plant, shipping terms/methods, tolerances, partial deliveries (e.g. not accepted for this material)

RMB and GBI Material Numbers

Pricing Conditions

Prices

Material price

Customer specific price

Freight

InCoTerms

Surcharges and discounts

For customer, material, or combination

Taxes

Fulfillment Process Steps

GBI Scenario

Customer: RMB, Denver, CO.

Silver Deluxe Touring bikes: 40

Delivery 30 by May 10, 10 by June 10

T-shirts: 100 (qualifies for 10% disc)

Delivery all by May 10

Deliver to racing location in Colorado Springs

	Selling price	Cost price
Silver deluxe touring bike	$2,800	$1,400
T-shirt	$30	$15

Pre-sales Activity

CRM light – establishing and maintaining customer relationships

Activities include

Creating and tracking customer contacts

Mailing campaigns

Responding to customer inquiries and request for quotation

Quotations

Outline agreements

Contracts

Scheduling agreements

Elements of the Pre-sales activity

Elements of a Sales Order

Relationship between Quotations and Sales Orders

Backward Scheduling

Inventory Sourcing

Transfer of requirements (materials management / materials planning)

From stock

Materials management

Internal procurement

In-house production process

External procurement

Procurement process

FI Impact of the Shipping Step

FI Impact of the Billing Step

FI Impact of the Payment Step

Customer Payment with Discount

Document Flow