Hi Vinod Kumar,
Please find below use ful notes on Sales Operation Planning(SOP)
SALES & OPERATIONS PLANNING (SOP):
Sales & Operations Planning (SOP) is a flexible forecasting and planning tool with which sales, production, and other supply chain targets can be set on the basis of historical, existing, and estimated future data. Rough-cut planning can also be carried out to determine the amounts of the capacities and other resources required to meet these targets.
Use SOP to streamline and consolidate your company’s sales and production operations.
SOP is particularly suitable for long- and medium-term planning.
Integration
SOP constitutes the planning functionality of the LIS information systems.
You pass on SOP plans to Demand Management (PP-MP-DEM) in the form of independent requirements. In turn, this data is fed to Master Production Scheduling (PP-MP-MPS) and Material Requirements Planning (PP-MRP).
An interface with Profitability Analysis (CO-PA) allows you to use CO-PA data as the basis for sales planning in SOP.
You can also pass on the results of SOP to Profitability Analysis (CO-PA), Cost Center Accounting (CO-OM-CCA), and Activity-Based Costing (CO-OM-CCA).
For more information please visit the following link:
http://help.sap.com/saphelp_erp2005/helpdata/en/a5/632f3b43a211d189410000e829fbbd/frameset.htm
Procurement Process consist of:
Purchase Requisition - A purchase requisition is a request or instruction to Purchasing to procure a certain quantity of a material or a service so that it is available at a certain point in time.
Request For Quatation - A request for quotation (RFQ) is an invitation extended to a vendor by a purchasing organization to submit a quotation (bid) for the supply of materials or performance of services.
Purchase Order - Formal request or instruction from a purchasing organization to a vendor or a plant to supply or provide a certain quantity of goods or services at or by a certain point in time.
Outline Agreement with vendors
a. Outline Purchase Agreement - An outline purchase agreement is a longer-term agreement between a purchasing organization and a vendor regarding the supply of materials or the performance of services within a certain period according to predefined terms and conditions. (Outside SAP, such agreements may be referred to by a number of terms, including "blanket", "master", "framework" or "umbrella" agreements)
b. Contract - In the MM Purchasing component, a contract is a type of outline purchase agreement against which release orders (releases) can be issued for agreed materials or services as and when required during a certain overall time-frame. (In the literature and in practice, similar concepts may also be referred to by a number of other terms, such as "systems contract", "blanket order agreement", "blanket contract", and "period contract".)
c. Schedulilng Agreement - A form of outline purchase agreement under which materials are procured on predetermined dates within a certain time period.
Goods Receipt - If your company uses the MM Purchasing component, deliveries from vendors are most likely the result of purchase orders initiated by the purchasing department.
The purchase order is not only the document with which the purchasing department orders goods from the vendor; it is also an important planning and tracking tool for the following departments: Purchasing, Material Requirements Planning (MRP), Inventory Management, and Invoice Verification.
Quality Inspection - If an inspection at the time of goods receipt has been defined for the material, the system automatically creates an inspection lot when the goods receipt is posted. Quality Management uses this inspection lot to carry out the inspection.
Confirmation - Working with confirmations has the advantage that Materials Planning does not have to depend solely on the delivery dates and quantities set out in purchase orders or the delivery schedules of scheduling agreements.
Confirmations enable you to plan more exactly, since during the time-span between the order date and the desired delivery date you receive increasingly more reliable information from the vendor regarding the anticipated delivery.
Receipt of Vendor Invoice - Document from an invoicing party containing the payments to be made based on business transactions performed in Purchasing and Inventory Management. An incoming invoice can be an invoice or a credit memo.
Invoice Verification - Logistics Invoice Verification is a part of Materials Management (MM). It is situated at the end of the logistics supply chain that includes Purchasing, Inventory Management, and Invoice Verification. It is in Logistics Invoice Verification that incoming invoices are verified in terms of their content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. The system updates the data saved in the invoice documents in Materials Management and Financial Accounting.
Sales
Inquiry - A customer’s request to a company that they provide a quotation or sales information without obligation. An inquiry can relate to materials or services, conditions and if necessary delivery dates. The sales area that accepts the inquiry becomes responsible for further processing.
Quotation - A quotation presents the customer with a legally binding offer for delivering a product or providing a service within certain fixed conditions. This offer is legally binding for the company within a specified time period. A sales area can reply to a customer inquiry with a customer quotation or use it to refer to a business partner contact.
Sales Order - Request from a customer to a company to deliver a defined quantity of products or provide a service at a certain time.
The sales area that accepts the inquiry is responsible for completing the agreement.
Create Delivery:a. Picking - The picking process involves taking goods from a storage location and staging the right quantity in a picking area where the goods will be prepared for shipping.
b. Packing - Packing is part of delivery- and shipment processing. When you process a delivery, you can select delivery items for packing and assign them to handling units (HUs).
c. Goods Issue - As soon as the goods leave the company, the shipping business activity is finished. This is illustrated using goods issue for outbound deliveries.
Billing - Billing represents the final processing stage for a business transaction in Sales and Distribution. Information on billing is available at every stage of order processing and delivery processing.
Please Reward If Really Helpful,
Thanks and Regards,
Sateesh.Kandula
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