Right Solution, Right Time, Right Price

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Sales Order Processing ltSitegt
Right Solution, Right Time, Right Price
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Agenda

• General Information for Sales Order Processing
• Sales Inquiry
• Quotations
• Sales Orders
• Inventory/Availability Reporting
• Consignment Orders
• Reports/Lists
• Complaints Processing
• Pro-Forma Invoice Creation
• Questions / Review

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I. General Information for Sales Order Processing
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Organizational Elements Quick Review
Sales Area
ltClientgt Sales
SALES
Organization
ORGANIZATION
(0010 ltClientgt Americas)
Distributor
Direct
DISTRIBUTION
Distribution
Distribution
CHANNEL
Channel
Channel
(02)
(01)
Service
General
Machine
DIVISION
House
Columbus
Switch
Motion
Tool
Accounts
(02)
(03)
(05)
(06)
(07)
SPECIAL REPORT
PARTS SALES
PARTS SALES
PARTS SALES
PARTS SALES
PARTS SALES
PARTS SALES
PARTS SALES
TOTAL PARTS SALES
SERVICE ORDER
SERVICE ORDER
SERVICE ORDER
SERVICE ORDER
SERVICE ORDER
SERVICE ORDER
SERVICE ORDER
TOTAL SERVICE ORDERS
REPAIR ORDER
REPAIR ORDER
REPAIR ORDER
REPAIR ORDER
REPAIR ORDER
REPAIR ORDER
REPAIR ORDER
TOTAL REPAIR ORDERS
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Business Processes Cycle
Sales Order Processing
Sales Order Processing
Inventory
Sourcing
Inventory
Sourcing
Pre-Sales Activities
Quotation
Invoice
Delivery
Delivery
Payment
Payment
Billing
Billing
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Basic Functions Within Sales Order Processing

• During sales order processing, the system carries
  out basic functions, such as
• Determines Pricing
• Decides Delivery Requirements
• Decides Requirements for creating invoices
• Updates Document Flow
• Updates Sales reporting
• Carries out availability check

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Sales Documents
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Sales Documents

• There are four distinct groups of sales
  documents
• Pre-Sales Activity Inquiries, and Quotations
• Sales orders
• Complaints, encompassing Subsequent Delivery Free
  of Charge order, Credit /Debit memo requests and
  Return Orders.

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Sales Documents

• There are three distinct control elements within
  a sales documents
• Order type controls Number range for the order
• Incompletion procedure at the header
• Output determination procedure
• Item number increment
• Document pricing procedure
• Item category controls Should pricing be carried
  out
• Is item to be invoiced
• Which fields appear on the incompletion log
• Partner determination
• Schedule item category controls
• The correct A/R account cost will hit
• Especially important in internal order
  processing

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Sales Documents
From the sales document, you can create and
process deliveries and billing documents. In
addition, some sales documents, such as rush
orders, automatically trigger the creation of
delivery documents.
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How Sales Documents are Structured   
Sales Document

•    
• All sales documents have basically the same
  structure.
• They are made up of
• Header
• Line Item
• Schedule Line

Header
Item 1
Schedule line 1
Item 2
Schedule line 1
Schedule line 1
Schedule line 1
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• Header data
• The general data that is valid for the entire
  document is recorded in the document header.
• For example,
• Number of the sold-to, ship-to party
• Purchase Order
• Sales Area Data
• Payment Terms
• Pricing elements for the entire document
• Order Status
• Industry
• (add. data Acustomer group 1)
• Application
• (add. data Acustomer group 2)

Sales Document
Header
Sold-to party 1000006 Req.
Delivery Date 7/28/00 Ship-to party
1000006 Currency USD
Item 1
Schedule line 1
Item 2
Schedule line 1
Schedule line 1
Schedule line 1
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• Item data
• Whereas data in the document header applies to
  all items in the document, some data applies only
  to specific items or can be overridden by the
  item. This data is stored at item level and
  includes the following
• Material number and data
• First delivery date
• Reason for rejection
• Partner determination (an alternative ship-to
  party or forwarding agent (carrier) can be
  defined for a particular item)
• Item level text
• Item level status
• Plant and storage location specifications
• Pricing conditions for the individual items
• Item Category

Sales Document
Header
Item 1
Item 2
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• Schedule line data
• The schedule line contains all the data that is
  needed for a delivery.
• For example, a customer orders 20 units of a
  particular material which you enter as one item
  in the sales order. However, you can only deliver
  10 pieces now and the remaining 10 pieces next
  month so you will confirm two delivery dates. The
  data for these deliveries (dates, confirmed
  quantities) are stored in two separate schedule
  lines. (Automatic line splits)
• In sales documents where delivery data is not
  relevant, for example, contracts, credit and
  debit memo requests, the system does not create
  any schedule lines.
• Data recorded in the schedule lines includes the
• Schedule line quantity
• Delivery date
• Confirmed quantity

Sales Document
Header
Item 1
Schedule line 1
Item 2
Schedule line 1
Schedule line 1
Schedule line 1
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Data From Master Records         When you create
a sales document without referring to a preceding
document, the system copies the following data
from the master records

• Data about the sold-to party and other partners
  from the customer master records
• Item data from the material master record
• Data from any relevant customer-material
  information records (customer specific part
  numbers)

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Data from Preceding Documents         If you
create a sales document with reference to a
preceding document, the system copies nearly all
the data from the preceding document, depending
on copy control setup for document combinations
being referenced. The data in the preceding
document originally comes from the customer and
material master records. Because the data is
copied from the preceding documents into the
sales document, any changes that have been made
to the master data records since the preceding
document was created are not included in the
sales document. If, when you create with
reference, you add another item to the document
that was not in the preceding document, the
system determines the data for the new item from
the master records, such as the material master
or info record.
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What is the difference between an Inquiry and a
Quotation?
Inquiry Non-Binding Agreement For example, a
customer inquires whether we have a certain
product in our warehouse, how much it will cost,
or whether the product will be available for a
certain date. The inquiry will not be sent to the
customer. Quotation Binding Agreement from
ltClientgt A quotation presents the customer with a
legally binding offer for product or service
within certain fixed conditions.

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Reporting and Analysis in SAP R/3

• Standard Reporting
• Lists documents and master data
• Provides analysis through sorting and totals
• Displays details
• List Processing
• Lists selected documents
• Allows you to branch to documents and return to
  list
• Helps organize work

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Sales and Distribution
SAP Quick Reference
Sales Document Icons
These Icons appear on most Sales Documents
General Icons
Status Overview Display Sales Summary Display
Sold-to Party Header Output View Reject
Document List Sales Orders
Page Down New Session View Availability Item
Conditions
Display Item Detail Create Item Delete
Item Item to top Display Document Flow Check
Item Availability
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Sales Order Processing
What 3 organizational elements make up the Sales
Area? Name the 2 distribution channels? Name the
7 different division? Name 2 things order type
controls?
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II. Sales Inquiries
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   Inquiry   

• Used to store pre-sales data.
• There are a wide range of functions defined for
  managing and monitoring these documents.
• Information gained from these documents can be
  used to gauge different market, sales, inventory
  trends.
• Each document has a validity date.

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Creating a Sales Inquiry Menu Path Logistics
gtgt Sales and Distribution gtgt Sales gtgt
Inquiry gtgt VA11 - Create Transaction
Code VA11
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• Step 1 Initial Screen
• Enter IN for Inquiry Type

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• Step 1 Initial Screen
• Enter IN for Inquiry Type
• Click on the Enter button.

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• Step 2 Completing the Inquiry
• Enter the Customer Code for the Sold-to party.
  You can also use the Matchcode button to search
  from a list.

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• Step 2 Completing the Inquiry
• a. Enter Sold-to Party
• b. Ship-to Party will default in from the
  customer master. If there are multiple ship to
  partners attached to a sold to you will get a
  selection box.

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• Step 2 Completing the Inquiry
• Enter Sold-to party.
• Enter the Ship-to Party
• Enter the Requested Delivery Date and the
  validity dates.

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• Step 2 Completing the Inquiry
• Enter Sold-to party.
• b. Enter the Ship-to Party
• c. Enter the Requested Delivery Date and the
  validity dates.
• d. Enter Material Numbers or select from a list
  by using a matchcode search. Enter the requested
  order quantity.

d.
d.
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Schedule Lines w/inventory Full quantity is
available for customers request date.
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Schedule Lines w/partial availability 75 in
stock 75 coming in 8/16 100 coming in 8/23
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III. Sales Quotations
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   Quotation  

• Used to store pre-sales data.
• There are a wide range of functions defined for
  managing and monitoring these documents.
• Information gained from these documents can be
  used to gauge different market, sales, inventory
  trends.
• Each document has a validity date.
• A Textual description can be used instead of the
  material .
• A quote is a legally binding declaration to the
  customer containing material specifications,
  prices and terms of delivery/sales.

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• Step 1 Initial Screen
• Enter Quotation Type
• QT Sales Quotation
• AS Service Quotation

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• Override Application or Industry
• Menu Path Go-to Header
• To change the industry or application for
  special projects that deviate from the customer
  master default.

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Facilitator Demonstration/Review

• Creating an Inquiry
• Creating a Quotation
• With Reference to Inquiry
• Without Reference to Inquiry

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IV. Sales Orders
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SAP Quick Reference
Sales and Distribution
Sales Order Types
Code
Order Type
Code
Order Type
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• Override Freight Forwarder (Carrier) by line
  item
• Menu Path Go-to Item - Partners
• Select the match code on the forwarding agent
  partner no. field. Use Account group Z015
  (shipping/freight).

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Sales Order Processing
Name the 2 distribution channels? Name the 7
different division? Name 2 things order type
controls? Where do you change the freight
carrier? Where does the application and industry
default from and how do you change? What is the
SAP term for Item Master?
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Sales Order Processing
What 3 organizational elements make up the Sales
Area? What is the condition type for Material
Price? What is the condition type to override
Material Price? Name 2 things order type
controls? Where do you change the freight
carrier? What is the search criteria you will use
to find the forwarding agent (freight
carrier)? Where does the application and industry
default from and how do you change?
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V. Inventory and Availability Reporting
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Availability Check
Other factors to take into account
Inward movement of goods
Safety stock Stock transport orders Replenishment
lead time
Purchase Order
Production Order
Firm Planned Order
Stock
Sales Order
Reservation
Delivery
Outward movement of goods
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SD Available to Promise Capabilities
Inward Movements
Replenishment
Stock on Hand
Open Production Orders
Open Purchase Orders
Firm Planned Orders
Stock in Transit
Delivery
Sales Orders
Reserved Invent.
Time Fence / Lead-time
Outward Movements
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Stock Overview Stock Requirements
List Availability Overview Warehouse Stock
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Availability Overview Displays the availability
situation for a particular material and plant
combination. Transaction Code CO09 or Icon
from within sales order - Enter Plant 1W Enter
Checking rule A Check the W/Reqmts Quants Box
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Stock Overview Transaction Code - MMBE
Displays all stock (stock types) of a material
over all organizational levels.
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Stock Requirements List Transaction Code MD04
Displays open incoming orders (planned orders,
production orders, purchase orders) and outgoing
requirements (sales orders, deliveries,
reservations, purchase orders) Forecast VSF is
consumed by sales documents. ATP does not
consider VSF.
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Warehouse Stock Transaction Code MB52
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Business Process Flow in SAP
Payment
Delivery
Order
Invoice
Document flow of any sales document Order 900 .
Delivery 80000459. . Picking request 17951109 .
. GD goods issue delvy 49001828. . Invoice
90000333 . . . Accounting document 100000276

• Sales documents represent transactions in the
  system.
• They form a chain of related documents.
• The entire chain of documents creates the
  document flow.
• The system copies data from one document into
  another to reduce data entry and make problem
  resolution easier.

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If you enter an order for the same
customer/material combination you will get a
notification.
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Select List
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Sales Order Processing
What 3 organizational elements make up the Sales
Area? Where do you change the freight
carrier? What is the search criteria you will use
to find the forwarding agent (freight
carrier)? What is Document Flow?
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VI. Consignment Orders
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Consignment Orders Consignment goods are goods
which are stored at the customer location but
which are owned by ltClientgt. The customer is not
obliged to pay for these goods until they remove
them from consignment stock. In inventory
management, the consignment stock is managed as
special stock in your inventory and is assigned
to specific customers. Availability check is not
carried out on consignment inventory
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Consignment Fill Up Order Type KB

Consignment fill up is used to supplement or
create the customers consignment stock. When you
ship consignment stock to the customer, you
process the transaction by creating a consignment
fill-up order. The relevant quantity is removed
from regular inventory in your plant and is added
to special stock for the customer. The
transaction is not relevant for pricing since the
consignment stock remains the property of
ltClientgt.
Sales
WM
Sales
Delivery
Goods Issue (Increased Stk)
Consignment Fill-Up
Customer Consignment Stock Created
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Create Consignment Fill-up Order Type KB
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Go to your Stock Overview report to view the
inventory movements. Transaction Code MMBE
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After Product is shipped, the inventory will be
moved to Customer Consignment Stock.
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Consignment Issue Order Type KE

Consignment issue enables the customer to take
the consignment goods from the special stock for
their use or to sell. When the customer removes
consignment stock to use or sell, you record the
transaction in the system by creating a
consignment issue order. When the goods issue
is posted by Sales, the relevant quantity is
deducted from both the customers special stock
and your own total valuated stock. The
transaction is now relevant for pricing since the
goods now become the property of the customer.
Sales
Sales
Sales
Consignment Issue W/ref to fill-up
Delivery
Goods Issue (Decreases Stk)
Billing Document
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Consignment Returns Order Type KR

Consignment Return is used only if you need to
reverse a consignment issue. The relevant
quantity is returned to consignment
inventory. The transaction is relevant for
pricing since the customer was already billed for
this. A credit memo will be created.
Sales
Sales
Sales
Sales
Delivery
Goods Issue (Increase Stk)
Consignment Returns W/ref to Issue
Credit Memo
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Consignment Pick-Up Order Type KA

Any consignment goods stored at the customers
warehouse that havent been used can be returned
to ltClientgts warehouse with a consignment
pick-up. If the customer returns consignment
stock to you, you record the transaction in SAP
by creating a consignment pick-up order, similar
to a return order. When the goods issue is
posted, the relevant quantity is deducted from
the customers special stock and is added back
into your regular stock. Your total valuated
stock remains the same since the returned stock
was regarded as ltClientgt inventory while it was
at the customers premises. The transaction is
not relevant for billing.
WM
WM
Sales
Delivery
Goods Issue (Decreases Stk)
Consignment Pick-Up
Customer Consignment Stock depleted
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Document Flow Menu Path Environment
Display Document Flow Icon
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Sales Order Processing
What does a consignment issue order type do? Is a
consignment fill-up order relevant for
billing? Is a consignment return relevant for
billing? What is the search criteria you will use
to find the forwarding agent (freight
carrier)? What is Document Flow? What 3
organizational elements make up the Sales
Area? TIP Ctrl C and Ctrl Y
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Sales Order Processing
What does a consignment issue order type do? Is a
consignment fill-up order relevant for
billing? Is a consignment return relevant for
billing? What is the search criteria you will use
to find the forwarding agent (freight
carrier)? What is Document Flow?
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VII. Order Reporting
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Reporting and Analysis in SAP R/3

• Standard Reporting
• Lists documents and master data
• Provides analysis through sorting and totals
• Displays details
• List Processing
• Lists selected documents
• Allows you to branch to documents and return to
  list
• Helps organize work

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ZVCSO customer or sales report can be run
by Sales Group Sales Employee Distribution
Channel Material Sold-to Many others
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The report can also be dumped into Excel to sort
and modify to give to customers or the outside
sales force To do so select List Save File
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Select Spreadsheet as the format to be saved
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Name the file and note the file name path
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Open Excell and find your file You may have to
search for all files
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A Clip of ZVSCO in Excell
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ZVISO Is an Internal Order report similar to
ZVCSO that contains additional information and is
run the same way
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VA05 Report run in SAP by Sold-to Material PO
Open orders Both open and closed orders Your
Orders
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VA05 lists sales orders per your selection
criteria Additional fields can also be utilized
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Hidden fields can be selected Brought over to
displayed fields And copied into the report
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Documents can be referenced just by double
clicking the SD doc
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This takes you into the document itself to update
or view
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VIII. Complaints Processing
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• Return Order RE Product being return from
  customer
• Credit Memo Request CR Credit being issued
  without product being returned.
• Debit Memo Request DR Debit being given to
  customer.
• The request is automatically placed on billing
  block pending verification. If the credit is
  justified the billing block is removed by sales
  supervisor and a credit or debit memo is created.
• Order Reason is required to help with the
  justification process. Additional details can be
  entered in the header comments text.
• Subsequent Delivery Free of Charge SD Short
  shipment

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Credit and Debit Memos
Credit Memos
Invoice
Credit memo
Credit memo request
Invoice
Billing block
Debit Memos
Invoice
Debit memo
Debit memo request
Invoice
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• Credit/Debit memo request Order Type CR/DR
• Billing Block (release request)
• Billing Due List (Credit/Debit Memo creation)

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Credit Memo Request with Reference to
Invoice a. Enter Billing Doc b. Click Selection
List to select item and quantity.
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Credit Memo Request with Reference to
Invoice c. Select the items and quantity d. Hit
copy button
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• Credit Memo Request with Reference to Invoice
• Order reason
• Billing block will default

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Credit Memo Request with Reference to
Invoice g. PN00 (price override) the amount of
the credit you want to issue.
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How Are Returns Processed?
Invoice
Returnsdelivery
Credit memo
Return request (authorization)
Sales Order

• Accept returned goods (Post goods issue)
• Place in restricted stock

• Credit memo created after removing the billing
  block.

• Order reason required to create Return Order

Invoice
Billing block
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• Return Order Request Order Type RE
• Return Delivery (accept return)
• Billing Block (release return request)
• Billing Due List (Credit Memo creation)
• Note Return Order Freight Creating a return
  order and want credit freight back to the
  customer the freight needs to be added at order
  entry. When you create an return order with
  reference to a prior invoice, freight that was
  charged on the original invoice will be copied
  into the return order and go all the way through
  billing. Or, when you create a return order
  without reference to a prior invoice, you are
  able to enter freight as a line item on the order
  and process all the way through billing.

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IX. Pro-Forma Invoice Creation
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Creating a Billing Document Pro-Forma Invoice
Invoices will typically be created using the
Billing Due List which creates invoices in bulk
that are due for billing.
However, an individual billing document can be
created in VF01 following the menu path
Logistics, Sales and Distribution, Billing,
Billing Document, Create.
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Proforma Invoices

• A proforma invoice is an invoice that is
  generated before the shipment is made. Often the
  proforma invoice is used by our customers to
  obtain importation license when shipping
  overseas.
• There are two methods by which a proforma invoice
  is generated
• For an entire sales documentissued for the
  entire open order.
• For an outbound deliveryissued for just the
  material on a specific delivery.
• Note Data from Proforma invoices is not
  transferred to Accounting.

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Creating a Proforma Invoice from a Sales Document
From the drop down menu, choose the billing type
Proforma for Order.
Enter the sales order document number. Hit enter.
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Creating a Proforma Invoice from a Sales Document
The material on the order will be listed. To
finish processing your proforma invoice, click on
the Save icon.
Once the invoice has been generated, the document
number will appear at the bottom of the
screen. The document will automatically print to
the users designated printer.
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Sales Order Processing
Sales and Distribution Lists PR00 Material
Pricing Availability checking within
Inquiry Delivery Due List Delivery Groups/Ship
Complete Shipping tab
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Sales Order Processing
Free Delivery FD (Sample, Shows, Warranty)
Schedule item category Proforma Invoice Creation
Errors Information, Warning, Error Order
Reason Non G/L Sales Consignment
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Sales Order Processing
Is a consignment fill-up order relevant for
billing? Is a consignment return relevant for
billing? What is the search criteria you will use
to find the forwarding agent (freight
carrier)? What information is required when
entering a return order request? What process
needs to take place for a Credit Memo to be
generated from a Credit Memo Request? What does a
rush order (SO)do different then a standard order
(OR)?
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Hands-On Order Processing Exercise