Customer Order Management

[Former Member]

Hi Guyz,

Can anybody please throw some light on Customer Order Management ?

Regards

Rajesh

[Former Member]

HI Rajesh

Customer Order Management:

One of the key strengths of enterprise management systems is the integration of business functions. This process starts with the contact with a potential customer. This process of customer ordering is at the heart of the information system. The chart above shows the integration of sales and distribution to capture the order and ship the goods, material management to control the inventory, financial accounting to manage the billing and flow of cash, controlling to measure the profitability of operations and production planning to ensure an economical flow of goods to inventory and customers.

The logic of the organization of master data and other procedures in the system is built on Organizational elements. These are:

Company code--an independent accounting unit.

Sales organization-- responsible for marketing.

Distribution Channel-- the means though which sales material reaches the customer, e.g.wholesale, retail, etc.

Division--used to segment a business into lines.

Plant-- a manufacturing facility or warehouse.

Shipping point-- a fixed location that carries out shipping activities.

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Master Data contains the records that remain in the database over an extended period of time, are maintained centrally and shared across application modules to eliminate data redundancy.

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Customer Master Data is shared between the accounting and sales and distribution departments

The system copies data from one document into another to reduce data entry and make problem resolution easier.

The following interfaces are connected to the sales process:

Check to see if the customer has exceed the credit limit FI

Checks to see if there is enough stock available for shipment MM

Updates the Cash Forecast FI

Creates production orders at sales order time PP

Invoicing is a major interface point in the system:

FI updates the receivable and the inventory by automatic journal entries to the general ledger

CO-PA updates profit center accounting to track the revenue and costs associated with the sale

The link will help u

http://academic.uofs.edu/faculty/gramborw/sap/comor.htm

http://www.gxs.com/pdfs/caseStudies/CS_Infineon_GXS.pdf

Reward if useful to u

Message was edited by:

narendran vajravelu

[Former Member]

Hi Rajesh,

CUSTOMER ORDER MANAGEMENT:

Customer Order Management solutions simplify the complex and often frustrating process of tracking thousands of products across multiple catalogs and systems. They deliver deep customer insight that enables businesses to dynamically present targeted product bundles, offer intelligent cross-sell and up-sell opportunities, and achieve optimal prices for products and customer segments. At the same time, they give employees the information they need to take decisive action and conduct intelligent interactions with customers. As a result, companies see greater revenues, reduced operating costs, and higher customer loyalty.

2 Process & Configuration

2.1 Customer Master

2.1.1 Account Group

2.1.1.1 Maintain Number Range for Account Group

Use

The purpose of this activity is to control number range of Account Group.

Procedure

Access the activity using one of the following navigation options:

IMG --> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> Customer Accounts --> Master Data --> Preparations for Creating Customer Master Data --> Create Number Ranges for Customer Accounts --> Select the Icon to maintain Number Range

Transaction Code: SPRO

Data to be maintained:

No | From | To | Current No | Ext (Tick in Check Box)

01 | 0000000001 | 0000099999 | 0 | No

02 | 0000100000 | 0000299999 | 0 | No

XX | A | ZZZZZZZZZZ | Yes

2.1.1.2 Assign Number Range to Account Group

Use

The purpose of this activity is to maintain number range of Account Group.

Procedure

Access the activity using one of the following navigation options:

IMG > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Master Data > Preparations for Creating Customer Master Data > Assign Number Ranges to Customer Account Groups

Transaction Code : SPRO

Data to be maintained:

Group | Name | Number Range

0001 | Sold-to party | XX

0002 | Goods recipient | XX

0003 | Payer | XX

0004 | Bill-to party | XX

2.1.1.3 Define Account Groups with Screen Layout (Customers)

Use

In this step, you determine the account group of the customer.

Procedure

Access the activity using one of the following navigation options:

IMG > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Master Data > Preparations for Creating Customer Master Data > Define Account Groups with Screen Layout (Customers)

Transaction Code : SPRO

The groups indicated below are a few examples. There are many groups in Standard SAP & if we require additional Group, it can be copied from appropriate group & maintained.

Group | Name

0001 | Sold-to party

0002 | Goods recipient

0003 | Payer

0004 | Bill-to party

0005 | Prospective customer

0006 | Competitor

Select Sold-to-party > go to Details > Double Click on General data / Company code data / Sales data. It will take to next screen which details Tab Pages of General data / Company code data / Sales data. Double Click on Tab Page for example: Address, Control, Marketing & so on. Here you can maintain whether the field is to be Suppress, Req. Entry, Opt. entry or Display

2.1.2 Process to Create Customer Master

2.1.2.1 Initial Screen of Customer Master Maintainance

Use

The purpose of this activity is to maintain Customer Master Data. Customer Master Can be created for Sales & Distribution, in which it will be possible to maintain General Data Tab & Sales Area Tab. Alternatively it is also possible to maintain Complete / FI, in which it is possible to maintain General Data, Company Code Data & Sales Area Data (Complete) or General Data & Company Code (F1)

Procedure

Access the activity using one of the following navigation options:

SAP Easy Access > Logistics > Sales and Distribution > Master Data > Business Partner > Customer > Create > Sales and Distribution / Complete

Transaction Code : VD01 / XD01

Fields to be maintained in Initial Screen (referring Complete):

Field - Functionality

Account Group - Take a drop down & select appropriate Account Group

Customer Enter manually

Company Code - Take a drop down

Sales Organization - Take a drop down

Distribution Channel - Take a drop down

Division - Take a drop down

A Customer can be created with reference to an existing Customer & necessary data can be changed.

Reference

Field - Functionality

Customer - Enter manually

Company Code - Take a drop down

Sales Organization - Take a drop down

Distribution Channel - Take a drop down

Division - Take a drop down

2.1.2.2 General Data of Customer Master Maintenance

Use

The purpose of this activity is to maintain General Data. General Data is applicable to the customer centrally. Incase of extending Customer to another Sales Area, General data will remain the same.

Procedure

Fields to be maintained are as under:

ADDRESS

Field - Functionality

Title - Take a drop down

Name - Enter manually

Search Term - Enter Manually (Optional)

Street - Enter Manually (Optional)

House No - Enter Manually (Optional)

Postal Code - Enter manually

City - Enter manually

Country - Take a drop down

Region - Take a drop down

Control Data

Field - Functionality

Vendor - Enter Manually (Optional) – To establish Customer Vendor Relationship.

Trading Partner - To be maintained incase of Inter-company Customer,

The above is for Illustration purpose. Please ensure to maintain the fields required.

2.1.2.3 Company Code Data of Customer Master Maintenance

Use

The purpose of this activity is to maintain Company Code Data. This is maintained by an FI person.

Procedure

Fields to be maintained are as under:

Account Management

Field - Functionality

Recon. Account - Take a drop down (Mandatory)

Payment Transaction

Field - Functionality

Terms of payment - Take a drop down.

The above is for Illustration purpose. Please ensure to maintain the fields required.

2.1.2.4 Sales Area Data of Customer Master Maintenance

Use

The purpose of this activity is to maintain Company Code Data. This is maintained by an FI person.

Procedure

Fields to be maintained are as under:

Sales

Field- Functionality

Sales Office - Take a drop down & maintain the appropriate SBU

Currency - Maintain the local / export currency.

Exch. Rate Type- Maintain ‘M’, incase of export / inter-company(if required) only.

Cust. Pric. Proc -This is maintained to pick the pricing procedure in Sales Order & Billing Document. It should always be maintained.

Customer Stat. Gr - This is recommended to be maintained to enable the data to flow to SAP standard report.

Shipping

Field -Functionality

Delivery Priority - Take a drop down & maintain the appropriate for Delivery purpose.

Order Combination - Maintain the tick

Shipping Condition -Take a drop down & maintain the appropriate for Delivery purpose.

Delivery Plant - Take a drop down & maintain the appropriate Plant.

Billing

Field - Functionality

Incoterm - Take a drop down & select. Maintain the Description manually.

Terms of payments -Take a drop down & select.

Account assignment Group -Take a drop down & maintain the appropriate. This is very important to be maintained, else it will give an error to release the billing document to accounting.

Tax - Take a drop down & select ‘0’ or appropriate.

The above is for Illustration purpose. Please ensure to maintain the fields required.

2.1.3 Process to Change Customer Master

2.1.3.1 Initial Screen of Customer Master Maintainance

Use

The purpose of this activity is to change Customer Master Data. Customer Master Can be changed for Sales & Distribution, in which it will be possible to maintain General Data Tab & Sales Area Tab. Alternatively it is also possible to changed Complete / FI, in which it is possible to maintain General Data, Company Code Data & Sales Area Data (Complete) or General Data & Company Code (F1)

Procedure

Access the activity using one of the following navigation options:

SAP Easy Access > Logistics > Sales and Distribution > Master Data > Business Partner > Customer > Create > Sales and Distribution / Complete

Transaction Code : VD02 / XD02 (Change)

Transaction Code: VD03 / XD03 (Display only)

Initial Screen:

Reference

Field - Functionality

Customer Enter manually

Company Code - Ref:Company Code

Sales Organization - Ref:Sales Organization

Distribution Channel - Ref:Dist. Channel

Division - Ref:Division

2.1.3.2 General Data of Customer Master Maintenance

Use

The purpose of this activity is to Change General Data. General Data is applicable to the customer centrally. Incase of change of address, the change will be applicable to subsequent documents & not those, which are already created.

Procedure

Fields to be maintained are as under:

ADDRESS

Field - Functionality

Title - Default

Name - Default

Search Term - Default

Street - Default

House No - Default

Postal Code - Default

City - Default

Country - Default

Region - Default

Control Data

Field - Functionality

Vendor - Default

Trading Partner - Default

The above is for Illustration purpose.

2.1.3.3 Company Code Data of Customer Master Maintenance

Use

The purpose of this activity is to maintain Company Code Data. This is maintained by an FI person.

Procedure

Fields to be maintained are as under:

Account Management

Field - Functionality

Recon. Account - Default

Payment Transaction

Field - Functionality

Terms of payment – Default

The above is for Illustration purpose.

2.1.3.4 Sale Area Data of Customer Master Maintenance

Use

The purpose of this activity is to change Company Code Data.

Procedure

Fields to be maintained are as under:

Sales

Field - Functionality

Sales Office - Default

Currency - Default

Exch. Rate Type - Default

Cust. Pric. Proc - Default

Customer Stat. Gr - Default

Shipping

Field - Functionality

Delivery Priority - Default

Order Combination - Default

Shipping Condition - Default

Delivery Plant - Default

Billing

Field - Functionality

Incoterm - Default

Terms of payments - Default

Account assignment Group - Default. This is very important to be maintained, else it will give an error to release the billing document to accounting.

Tax - Default

The above is for Illustration purpose.

if you are referring to order to cash process of a customer, it typically starts with an

Inquiry > Quotation > Order > Delivery > Billing

Each of these stages has a significance in that, an inquiry is just what the customer has asked for where as a quotation is a reply from the company in an offer is binding to the customer and stands as a legal document. Followed by is an order which is a confirmationof what the customer has asked for and delivered to him depending on the availability of the stocks and as well checks for the suitable amount of credit allowed to him. Any deviation stops further processing which can anyway be cleared following suitable configuration.

A delivery takes after succesfuuly logging an order where the funtions like picking, packing, loading and transportation take place. And PGI of the quantity issued is done accordingly. Finally billing takes place depending on the billing date, for the quantity issued and it gets cleared to accounting and becomes accoutns receivable for the company. This takes place through proper revenue account determination

Please Reward If Really Helpful,

Thanks and Regards,

Sateesh.Kandula

[Former Member]

hi

com HELPS IN

Coordinate order management across multiple channels and customer service and distribution centers.

Manage complex, overlapping pricing scenarios and intricate product and order configurations.

Increase revenue through higher order fill rates, cross-selling, up-selling, and the ability to execute pricing and promotions accurately to specific target market segments.

Improve profit margins through profit margin protection controls and reduced order-entry costs.

COM consists of

presales activiteis

sales

delivery

invoice

payment receipt

<a href="http://academic.uofs.edu/faculty/gramborw/sap/slsordus.htm">ORDER MANAGEMENT</a><a href="http://www.bpir.com/customer-order-management-bpir.com-2.html">http://www.bpir.com/customer-order-management-bpir.com-2.html</a>