Business Process Design



Business Process DesignSALES PROCESS INDIAProject IdentificationProject NameCPI Project NumberSAP – ERP & CRM Implementation Project XXXXXXXXXXXXXCustomer NameCustomer NumberXXXXXXXXXXNNNNNNNNNSAP Project ManagerCustomer Project ManagerMr. Aditya PandeyXXXXDocument IdentificationAuthorDocument Location (repository/path/name)XXXXXSolution Manager VersionStatusDate (DD-MMM-YYYY)Document Classification0.1Final27-03-2014ConfidentialRevision history VersionDateDescriptionReview and ApprovalXXXXIndia Project ManagerDate (YYYY-MM-DD)Mr.YYYYYYSAP Project ManagerDate (YYYY-MM-DD)Mr.ZZZZZZZZZZZZIndia Business Process OwnerDate (YYYY-MM-DD)Mr. SSSSSSSSIndia Business Process OwnerDate (YYYY-MM-DD)TABLE OF CONTENT TOC \o "1-3" \h \z \u 1.Process Description PAGEREF _Toc384672938 \h 51.1Business Process Requirements PAGEREF _Toc384672939 \h 5Sales Processing: Drop Shipment Process PAGEREF _Toc384672940 \h 6Master Data Requirements: PAGEREF _Toc384672941 \h 6Document Type and Number range PAGEREF _Toc384672942 \h 7Sale order Type PAGEREF _Toc384672943 \h 7Delivery type PAGEREF _Toc384672944 \h 7Billing Type PAGEREF _Toc384672945 \h 7The following figure shows the delivery document types created from the sales document types and the billing document types created from the delivery document types PAGEREF _Toc384672946 \h 7Sales, Delivery & Billing type PAGEREF _Toc384672947 \h 71.2Business Process Diagrams PAGEREF _Toc384672948 \h 101.3Process Step Detailed Requirements & Solution PAGEREF _Toc384672949 \h 121.4Locations Where this Business Process is Performed PAGEREF _Toc384672950 \h 131.5Operational Decisions or Logic within the Process PAGEREF _Toc384672951 \h 131.6SOX & Legal Considerations and Company-Specific Policies PAGEREF _Toc384672952 \h 131.7Reference to Key Process Changes and Process KPI’s PAGEREF _Toc384672953 \h 131.8Integration Points PAGEREF _Toc384672954 \h 131.9Potential Future Process Improvements PAGEREF _Toc384672955 \h 142.Functional Solution Design PAGEREF _Toc384672956 \h 14Scenario-1 Allocate finished goods available from Finished goods stock PAGEREF _Toc384672957 \h 142.1Organization Structure Considerations PAGEREF _Toc384672958 \h 152.2Master Data Considerations (including all relevant data relationships) PAGEREF _Toc384672959 \h 162.3System Configuration Considerations PAGEREF _Toc384672960 \h 163.Technical/Development Related Items PAGEREF _Toc384672961 \h 183.1Workflow PAGEREF _Toc384672962 \h 183.2Reporting (operational and analytical) PAGEREF _Toc384672963 \h 193.3Interfaces PAGEREF _Toc384672964 \h 193.4Data Conversion / Historical Data PAGEREF _Toc384672965 \h 193.5Enhancements PAGEREF _Toc384672966 \h 203.6Output (e.g. Forms) PAGEREF _Toc384672967 \h 203.7Modifications PAGEREF _Toc384672968 \h 213.8SOA/Composition PAGEREF _Toc384672969 \h 213.9Third Party Solution PAGEREF _Toc384672970 \h 214.Authorization PAGEREF _Toc384672971 \h anizational Change Related Items PAGEREF _Toc384672972 \h 235.1Change Impact Summary PAGEREF _Toc384672973 \h 235.2Training Requirements PAGEREF _Toc384672974 \h 236.Self-Services PAGEREF _Toc384672975 \h 236.1Employee Self-Services (ESS) PAGEREF _Toc384672976 \h 236.2Manager Self-Services (MSS) PAGEREF _Toc384672977 \h 237.Questionnaire PAGEREF _Toc384672978 \h 23Appendix PAGEREF _Toc384672979 \h 24Reversal of Process Steps PAGEREF _Toc384672980 \h 24Process DescriptionBusiness Process RequirementsThe ABCD vendor Sales process is required in the system by business, the ABCD production is entered manually in the ABCD location (The ABCD stocks treated as Non-Valuated stocks). The ABCD sales are treated as in transit sales process which happens against the E1 form. The PO is raised from the Samarlakota plant in between they receive the order from the customer the vendor move the goods to the customer location with E1 form. The customer is invoiced with C form 0 taxes. This process is used to avoid the double taxation.In the current system the stocks are taken into the Samarlakota plant and sending the goods to the customer. The current requierement is the goods should not come to the plant in the system. Goods are removed to the customer from the vendor place.Reporting requirements, profitability analysis of the ABCD Materials and E1 assessment reports from the system.The excise duties are not involved in this process the taxes are exempted under the C form issuance with tax rate 0.The material liability lies with vendor the material ownership transferred to the Ship to once the goods moved from the vendor location to customer..Benefits :Tracking of the entire cycle from the sales order to vendor payment , PO item prices are loaded to the Materials .Easy to anlasis the profitability of the ABCD E1 sales materials and E1 assesment report can be generated from the system.Key Process Steps :Create sales orderAutomatic Purchase requistion Generate the Purchase orderLogical GRN Post Vendor InvoicePost the customer Invoice with refference to sales orderRequired SAP Applications: Enhancement package 5 for SAP ERP 6.0Enterprise Roles involved in process flows :Sales AdministratorWarehouse ClerkBilling AdministratorSales Processing: Drop Shipment ProcessThis scenario describes the entire process sequence for a standard sales process (Drop Shipment) with a customer. The business process encompasses all steps from creating an order to the clearing of a customer account and vendor account.The process starts with the creation of a customer's sales order. Depending on the customer and the material, various special events take place during the order entry, such as customer/material pricing, insertion of applicable discounts and checking the customer‘s credit history and generating the automatic purchase requisition to create the Purchase orders on ABCD vendors.Once the Purchase order is created the Turnover discount is added in the purchase order to hide material price to the customer when steeling the vendor after the discount value is settled to the vendor the actual cost is loaded to the materials.This scenario consists of the following steps:A sales order is entered with Tax category C form with 0 Taxes A automatic Purchase requisition is created in the system The Purchase requisition is copied to the Purchased order and Purchase order is createdThe Vendor Invoice is posted in the systemThe Customer invoice is created in the system.In this scenario there is no taxes are charged to the customers.Master Data Requirements:All the ABCD materials are maintained as Third party items the separate material codes are maintained based on vendor specifications the source list is checked in the material master and the source list is maintained.The Item category BANS -Third-party item is maintained in the Materials the pricing procedure ZIN001 is used to calculate the Prices in the ABCD sales documents. The Materials are treated as Third party materials .Document Type and Number rangeIn SAP R/3, each process is described by using different document types. Each document generated will have specific number assigned to it. The following are the sales order; outbound delivery and billing document types defined in SAP for ABCD and the SAP system number ranges assigned. All document numbers are internally assigned by the system.Sale order TypeSales Order Type DescriptionNumber RangeZORRetailer -Tiles10000000011999999999ZSWSanitary ware10000000011999999999ZEXExport Orders30000000013999999999Delivery typeDelivery Type DescSAP Doc typeNumber rangeFromToOB DeliveryZLFA280000000009999999999Billing TypeBilling Type DescSAP Doc typeNumber rangeFromToInvoiceZMRB3ABCD Specific NumbersThe following figure shows the delivery document types created from the sales document types and the billing document types created from the delivery document typesSales, Delivery & Billing typeSale Doc typeDelivery TypeBillingZORZLFAZMRBZSRZLFAZMRBPricing Conditions Types: The Pricing Element to be created and populated at the time of Sale Order Creation as shown below:PR00Standard price (Populated Automatically in SO) ZFRTFreight ( Entered Manually/ Automatically) K007Customer Discounts % (Entered Manually/ Automatically) ZADPAdditional pricesAny Manual Changes in Sale order will trigger Work Flow Approval ie changes in any Pricing Condition, Incoterm, payment Terms etc.*Please refer Pricing Procedure Blue Print for DetailsProposed Packaging Material type:For certain customer, business wants to enter the Proposed Packaging Material Type instruction at the time of Sale order and same will instruction will be available to Warehouse Clerk at the time of Packaging the material for eg Special packaging of material for European customer.Loading detail and loading instruction Loading Slip will contain all the loading instruction at the time of Loading of goods for eg Number of Pallets, truck Number, Driver License etcMaster data Details System will populate the Customer and Material data information in sale order. All master data will be uploaded in system as per SAP template.Box/ PalletNumber of Boxes/ Pallet per Deliver line item as per batch will be picked by system automatically at the time of creation of outbound delivery, depend on the packaging instruction maintained in system.IncotermBelow Mentioned Incoterm will be created and maintained in Customer Master in SAP. EXWORKS / EXFACTORYFOB (Onboard upto local sea port)C&F (Upto destination sea port)CIF (Upto destination sea port including insurance)DDU (Door to Door Delivery but Duty Unpaid)DDP (Door to Door Delivery including Duty Paid)Payment termsBelow Mentioned Payment will be created and maintained in Customer Master in SAP. 100% cash in AdvanceIrrevocable confirmed Letter of Credit- at sight/ 30days/ 60days/ 90days/ 120days- from bill of lading date Irrevocable confirmed Bank Guarantee- 30days/ 60days/ 90days/ 120days- from bill of lading date Cash against Document through Bank.Documents acceptance through bank-30days/ 60days/ 90days/ 120days- from bill of lading date50% cash before production and balance 50% cash before loadingPostdated cheque- 30days/ 60days/ 90days/ 120days- from bill of lading date Open Credit- against credit insurance cover-30days/ 45days/ 60days/ 90days/ 120days- from bill of lading dateMaterial reservationThe Materials are reserved to the sales orders the stocks are treated as a special stocks in the system. Business Process Diagrams-655955-752602100-394336-712597100-394336-712597100 142874113347400142874113347400-11430087630000Process Step Detailed Requirements & SolutionProcess StepExternal Process ReferenceBusiness ConditionBusiness RoleTrans-action CodeExpected ResultsSet Credit LimitCredit Management Credit Limit for Customer xxxx has been set.Sales Quotation (optional)Sales Quotation (Optional)Sales Order EntryCustomer request for materialSales AdministratorVA01Review Blocked Sales OrdersCredit Management Sales order is released.Purchase requisition Auto GeneratedME52NTo view the PR it can’t changeable Purchased OrderMaterials ManagementME21NPR are converted to Purchase ordersRelease Purchase Order releaseME29NThe Release Authority will release POLogical Good receipt NoteWarehouse ClerkMIGOTo book the consumption of the MaterialsPost the Vendor InvoiceFI TeamMIROPosting the Vendor invoiceCreate customer invoicwFI teamVF01Create the Customer Invoice and post the invoiceBillingMaterial shipped invoice Billing AdministratorVF04Billing is carried out.Sales: Period End Closing OperationsSales: Period End Closing Operations Closing the Open Purchase order for Part quantity’sMM : Period End closing operationsLocations Where this Business Process is PerformedLocation nameLocationCountryNumber of UsersPoint of ContactABCD Sales OfficeIndia10Operational Decisions or Logic within the ProcessRefer to the Enhancement Section- 3.5SOX & Legal Considerations and Company-Specific PoliciesAs per Company PolicyReference to Key Process Changes and Process KPI’sN/aIntegration PointsIntegration PointsIDIntegration PointSAP ComponentData ElementContactsCredit Master ManagementFICOCredit MasterVendor Invoice posting FICOPosting the Vendor Invoice into the accountsCustomer Invoice postingFICOPosting the customer invoiceCreating the POMMCreate the Purchase order Post the GRN MMPost the logical GRN to book the third party accountsMaterial Master ManagementMMMaterial MasterPotential Future Process Improvements N/aFunctional Solution DesignScenario-1 Allocate finished goods available from Finished goods stock Sales Order will be created in ERP by sales team System will Run the credit check, if credit limit not available then block Sale OrderSystem will create the Automatic Purchase requisition.The ABCD location is created as Virtual location Non-valuated plant.All the stocks are updated manually in the Virtual locationAfter doing the invoice the stocks should reduce from the ABCD plant (This is not a standard functionality) this development is treated as change request.The standard workflow is used to release the sales order the Workflow is WS90000005-ZSD_SO_WF E1 Sales report is not part of the standard report it is a anization Structure ConsiderationsSales OrganizationsThe sales organization is an organizational unit within logistics, that structures the company according to its sales requirements.Sales Organizations are assigned to one Company CodeSales Organization is the selling unit in the legal sense with responsibility for:Product liability and rights of recourseDistribution of goods and servicesSales conditions and contract negotiationsDistribution ChannelThe distribution channel represents the channel through which salable materials or services reach customers. Typical distribution channels include wholesale, retail and direct sales.Distribution Channel is used when processes like order entry are totally differentDistribution Channel enables differences in Customer, Material, and Pricing master dataDistribution Channel promotes segregation of dutiesDistribution Channel facilitates reporting (example, Inter Company for assigning revenue in CO-PA)DivisionIn the SAP System you can define a division-specific sales organization. Product groups, i.e. divisions, can be defined for a wide-ranging spectrum of products. For every division you can make customer-specific agreements on, for example, partial deliveries, pricing and terms of payment. Within a division you can carry out statistical analyses or set up separate marketing proceduresDivision groups products or servicesDivision represents a product lineDivision is assigned to a materialSales AreaSD is organized according to sales organization, distribution channel and divisionSales Area is any configured combination of the organizational units Sales Organization, Distribution Channel, and DivisionAll sales document processing is for a Sales AreaShipping PointShipping points are defined in the SD organizational master data setup. They are the top level of the organization in shipping. Deliveries are always initiated from exactly one shipping point. A shipping point is assigned one or more plants and can be subdivided into several loading points.Shipping points are independent organizational units that are linked to a plant and represent the point of departure or receipt of materials. A plant may have many shipping points. A delivery is created from one shipping point onlyMaster Data Considerations (including all relevant data relationships)Essential master was created in ERP system in the implementation phase, master data that suits its operational focus, for example, master data for materials, vendors, and customers.This master data usually consists of standardized SAP Best Practices default values, and enables you to go through the process steps of this scenario.Essential Master Data Consideration for Return Processes are :Sales AreaCustomer MasterMaterial MasterPricing MasterSystem Configuration ConsiderationsStandard Order Document types should be configured to address the customer requirementsAvailability check needs to be activated in customizing for accurate stock determination during the order entryAutomatic price and discount should be proposed during the order entry via customizing. Should be able to modify certain prices during the order entryFree Goods functionality needs to be configured for giving goods free along with main orderBelow are the Configured Consideration for this Blue Print ProcessCore ConfigurationIDDescriptionIMG ActivityOwner1Define Standard Doc typeSales and Distribution → Sales → Sales Documents → Sales Document Header→ Define Sales Document Types2Define Billing TypeSales and Distribution → Billing → Billing Documents → Define Billing Types3Assign Billing Type to Sale Order TypeSales and Distribution → Sales → Sales Documents → Sales Document Header → Define Sales Document Types4Assign Sale Area to Sale Document TypeSales and Distribution → Sales → Sales Documents → Sales Document Header → Assign Sales Area to Sales Document Types5Define Item CategorySales and Distribution → Sales → Sales Documents → Sales Document Item → Define Item Categories6Assign item CategorySales and Distribution → Sales → Sales Documents → Sales Document Item → Assign Item Categories7Define Schedule Line CategorySales and Distribution → Sales → Sales Documents → Schedule Lines → Define Schedule Line Categories8Assign Schedule LineSales and Distribution → Sales → Sales Documents → Schedule Lines → Assign Schedule Line Categories9Copying Control Sales Document-Delivery TypeLogistics Execution → Shipping → Copying Control → Specify Copy Control for Deliveries10Define Delivery item CategoryLogistics Execution → Shipping → Deliveries → Define Item Categories for Deliveries11Copying Control Delivery document to Billing Document Sales and Distribution → Billing → Billing Documents → Maintain Copying Control for Billing Documents → Copying Control: Delivery Document to Billing Document12Assign Requirement TypesLogistics Execution → Shipping → Basic Shipping Functions → Availability Check and Transfer of Requirements → Transfer of Requirements → Determination of Requirements Using Transaction13Assign Incompletion Procedure to Standard Document TypeSales and Distribution → Basic Functions → Log of Incomplete Items → Assign Incompleteness Procedures14Assign Output Determination Procedure (Billing Doc)Sales and Distribution → Basic Functions → Output Control → Output Determination → Output Determination Using Condition the Technique → Maintain Output Determination for Billing Documents → Assign Output Determination Procedures15Assign Output Determination Procedure (Sales Doc)Sales and Distribution → Basic Functions → Output Control → Output Determination → Output Determination Using Condition the Technique → Maintain Output Determination for Sales Documents → Assign Output Determination Procedures16Create Candition Record BA00Logistics → Sales and Distribution → Master Data → Output→ Sales Document → Create17Create Condition Record RD00Logistics → Sales and Distribution → Master Data → Output→ Billing Document → CreateTechnical/Development Related ItemsWorkflow Work Flow need to set if there is any change/ Addition in the Pricing Condition, Incoterm & Payment term. Hierarchy of Work Flow Approval needs to be decided with the ABCD Business User.The Workflow Object WS90000005- ZSD_SO_WF this workflow could tweak for the India requirements.Reporting (operational and analytical)Standard SAP Reports are available as shown Below, if required will create Customized Report as per the Requirement.List of Sales OrdersVA05Sales Manager(SAP_NBPR_SALESPERSON-M)Sales Sales Orders Reports List of Sales OrdersA list of all selected sales orders is displayed.List Billing DocumentsVF05Sales Manager(SAP_NBPR_SALESPERSON-M)Sales Sales Orders Reports List Billing DocumentsA list of all selected billing documents is displayed.Orders within Time PeriodSDO1Sales Manager(SAP_NBPR_SALESPERSON-M)Sales Sales Orders Reports Orders within time periodA list of sales orders within a specific time periodIncomplete SD DocumentsV.02Sales Manager(SAP_NBPR_SALESPERSON-M)Sales Sales Orders Reports List of Incomplete Sales OrdersA list of all incomplete documents on the basis of the specified selection criteria is displayed.List of open purchase orders and PR’sME2NProcurement TeamSAP_MM_PUR_BUYERA list of open PO’s and open PR’sInterfaces N/aData Conversion / Historical Data ABCD Business needs to draw a strategy on Open Sales Order moving from their current Orion System to SAP at the Time of Final preparation for Go Live. ABCD Business Team needs to do the Cleansing Process of Open Sales Order and try to move Minimum Sales Order to SAP.EnhancementsBelow are the Must field Requirement from Sales, if the Fields are not available in material Master or in SAP Standard Sales Order then the fields need to be CustomizedCorrect item codeSizeQuantity in m2/pc/rm/set/BoxGrade ?(A Grade B grade or C grade )Custom Field addition in Sale OrderSizeScheme code33x50RBPlant wise number series the Z table has been maintained with combination of sales area and plant with number range intervals .Custom Field addition in Outbound delivery- Warehouse will enter the detail manually in system and same below information will be printed on the Loading Slip.Truck NumberContainer NumberDriver License xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxMaterial Reservation Standard functionality of Material reservation will be enhanced and below fields will be added in the standard functionality.Date: From ______ To ________Output (e.g. Forms) Below mentioned Forms need to develop as per the ABCD RequirementCommon form nameForm typeUsed in process stepOutput TypeTechnical nameOrder ConfirmationSmartFormSales Order EntryBA00YBUS_SDORCSales InvoiceSmartFormBillingRD00YBUS_SDINVModificationsN/a SOA/CompositionN/aBusiness Domain Process ComponentService Model Service Operation Candidate Third Party SolutionN/aAuthorization AuthorizationsIDAuthorizationData Objects(TA code)Reason# of employeesEmployee (Professional User)SAP_NBPR_EMPLOYEE_SAssignment of this role is necessary for basic functionality.Sales AdministratorSAP_NBPR_SALESPERSON_SSales Order EntryWarehouse ClerkSAP_NBPR_WAREHOUSECLERK_SDelivery CreationPicking (optional)Picking (optional)Assign Serial NumbersPost Goods IssueBilling AdministratorSAP_NBPR_BILLING_SBillingOrganizational Change Related ItemsChange Impact SummaryThere will be change in Role and Authorization for ABCD Employee. Specific Roles will be created and assign to Individual person with in ABCD. Training RequirementsFollowing below are the Training Requirement for Business users.Customer Master Data Maintenance Material Master Data MaintenancePricing Master Data Maintenance.Sales order creationDelivery creationBilling Document creation. Self-ServicesEmployee Self-Services (ESS)N/aManager Self-Services (MSS)N/aQuestionnaire AppendixReversal of Process StepsIn the following section, you can find the most common reversal steps that you can take to reverse some of the activities described in this document.Sales Order EntryTransaction code ( SAP GUI)VA01Reversal:Delete Sales DocumentTransaction code ( SAP GUI)VA02Business roleSales Administrator(SAP_NBPR_SALESPERSON_S)Business role menuSales Sales Orders ?Sales Order Processing ?Change Sales OrderCommentSelect menu Sales Document > DeletePR ChangeTransaction code ( SAP GUI)ME52NReversal:Change Purchase RequisitionTransaction code ( SAP GUI)ME52NBusiness roleProcurement team ( )Business role menuCommentBillingTransaction code ( SAP GUI)VF04Reversal:Cancel Billing documentTransaction code ( SAP GUI)VF11Business roleBilling Administrator(SAP_NBPR_BILLING_S)Business role menuSales Billing Change Billing DocumentCommentGo to transaction VF11, enter the relevant billing document number, choose Enter, and save your result. An invoice cancellation document has been created balancing the original invoice. ................
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