Sales Order Fulfillment Process

SAP Lab Exercise

MIS 3510, A01 Fall 2012

Sales order Fulfillment

In this lab exercise you will use the SAP ERP system to perform several processes from the point
of a customer’s inquiring about a product through customer’s ordering and to billing the
customer. The customer is West Hills Athletic Club, which buys energy snack bars from the
manufacturer Fitter Snacker (studied in several SAP cases).

The exercise covers several integrated processes that appear as a long order fulfillment process,
and in particular: Creating a Product Inquiry, Creating a Sales (Customer) Order from the
Inquiry, Creating Delivery, Picking the order, Posting Goods Issue, Invoicing the Customer, and
Recording the Payment.

Important! You will use SAP along with many other users. SAP will serve you well if you use
your account and your set of default data. You must use your dataset or you (and others) may
experience problems. Your dataset number appears in the table below. You should use it
whenever you see in instructions a double pound symbol (##) or double zero (00).

Your dataset number is often pasted together with some other piece of data. For example, in
creating an inquiry for West Hills Athletic Club, the instructions will refer to ## West Hills
Athletic Club. You will need to replace the ## with your Data Set Number (e.g., if it is 09, then
you should enter 09 West Hills Athletic Club).

Log in the system

1. Find the following icon on your desktop, and double-click it to launch it.

2. Double click “SAP logon” Icon on your desktop; a list of servers should appear on the
screen. Look for “oxford.” If it isn’t displayed, try if clicking on the folder “Connections”
would make a difference. You will see the following screen:

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3. To log into the server and the SAP system enter:

Client Number: 450

User ID: your user ID is a combination of the symbol FS- and your dataset number; for
example, if your dataset number is 01, your user ID is FS-01. See the table on p.3 below.

Password: If logging for the first time, the default password is SAP4US. Otherwise, use the
new password you had set.

4. Change the password, if the system asks you to do so. Here is one idea for creating the
password so you don’t forget it: Use the default password with the addition of last three
digits of your student ID (e.g., if 567 are the last three digits of a student ID, the user ID is
SAP4US567).

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User dataset numbers

Student Name Dataset
Number
Adigun, Oluwaseun A. 01
Andika, Erha M. 02
Babyk, Maryan O. 03
Bain, Kyle H. 04
Danzinger, Nicholas J. 05
Deras, Heidi 06
Dhaliwal, Gagandeep S. 07
Di Geronimo, Beniamino 08
Dupre, Thomas V. 09
Foh, Joshua J. 10
Gauthier, Charles 11
Hekle, Alan J. 12
Hellec, Steven J. 13
Kelly, Christopher A. 14
Kramer, Trevor M. 15
Kuang, Yesheng 16
Lang, Steven I. 17
Li, Hao 18
Murray, Daniel E. 19
Phung, Jessica 20
Prychitko, Derek W. 21
Sus, Steven F. 22
Tran, Dave 23

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 Sales Order Fulfillment Process

1. Create an Inquiry
The first business process to run will be to provide product details upon a customer’s request.
You will create an inquiry for ## West Hills Athletic Club. This functionality (as well as other addressed
in these instructions) is accessible in two ways – via SAP menu, and via User Menu.

Look at the menu in the upper part of the screen and find the term “Menu.” If you click on it, you can
select which menu you want to go by. In SAP menu, you need to do these selections:

Logistics ▷Sales and Distribution ▷Sales ▷Inquiry ▷Create

In User Menu, just double-click Create Inquiry. Either way, you should get the following screen:

1. Enter IN for Inquiry Type (or use the

search icon to display it and enter it by
double-clicking it; this method may work
in other steps as well.)
2. Enter ##FS for Sales organization
3. Enter DI for Distribution Channel
4. Enter SB for Division
5. Click on the enter icon
(Some details you see may be different.)

After entering the data you should get the following screen:

Click in the Sold-to party field - the search icon (

) shows up. Click it.
(Again, some details on your screen, like the date,
may be different. This applies to many screens to
follow.)

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The following screen should show up. Note that the tab is Customer (general); if not scroll the
tabs to get to this one.

Enter ## for your search term,

then click on the enter icon ( ).

After clicking the green checkmark, you should get a screen like the one below:

Double-click on ## West Hills Athletic CL

(Club). Look at the Customer column showing
the ID of your customer (different than here).

Double-clicking the West Hills Athletic Club line will create the customer number on the screen
Create Inquiry: Overview, to which the system will return you.

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The customer number for West Hills Athletic Club

is displayed (your number will be different than the
one shown in this figure).
1. Enter WH1## in the PO Number field
2. Click on the Valid from field to display the
search icon, and then click on the search icon ( ).

The calendar opens up with the current date marked. Click the enter icon (green checkmark).

Double-click on today’s date (which

is highlighted) to enter it

Click on the Valid to field, then click on the search icon ( ) to call up the calendar again, and
then double-click on a weekday one month from today. Click the enter icon.

When you are done, the customer order screen should look similar to the following:

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1. Check that your entries are similar to the screen

shown. Ship-To-Party may be filled too, customer
address printed…
2. Click on the field Material Group.
3. Click on the search icon.

The following window pops-up:

1. Select the tab Material by Material

Group.
2. Click on the arrow next to the material
group field to find the tab if necessary.
3. Click the arrow ( ).

You should get:

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 Sales Order Fulfillment Process

Double-click on Sales to select it.

Enter ##* for Material description:

Enter ##* for Material description

(yes, that’s a star, replacing any character.
Note that ## should be, as always, replaced by
your dataset number.)

The SAP system does not support the user-defined search terms for materials (as it does for
customers). However, with the addition of an asterisk, we can take care of that problem. After
submitting the entries with the enter icon ( ) you should get:

Double-click on ## NRG-B to select it

In the screen that follows, the material number should appear automatically:

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 Sales Order Fulfillment Process

Material number is automatically entered. Enter 10 for

Order quantity, and then click on the enter icon ( ).

If any system message appears, just click on the enter icon ( ) to clear it. Proceed to the next
screen.

Notice that SAP has filled in Description, and

some other data.
Select the first line by clicking the square next to
it ( ), and then click on the icon
Item Conditions ( ).

The following screen will appear:

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Note discount, and then click on the icon

Back to move to the previous screen.

Because the standard price for 10 cases is $2,950 and West Hills Athletic Club receives a 5%
price discount for any line item over $1,000 and a 10% discount for any line item over $1,500,
this inquiry includes a discount of $295. Click on the back icon ( ) to return to Create
Inquiry: Overview screen:

Select the first line, and then click

on the Display availability icon (the
middle on in this group)

Your output should be like the one below:

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This screen shows the number of cases that are

currently available to sell and their location 300.

Note the quantity of ## NRG-B bars available and the storage location where they are currently
located. Click on the back icon ( ), and then click on the save icon ( ) to save the inquiry.
Click on the exit icon ( ) to return to the SAP Easy Access screen.

2. Create a Sales Order from an Inquiry

If the customer wants to place an order after receiving the inquiry, we can create a sales order
from the inquiry so that we do not have to reenter the basic data. Follow this menu path to get
the screen underneath:

Logistics ▷Sales and Distribution ▷Sales ▷Order ▷Create

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The screen may already have some fields

filled. If not, make these entries (the search
icon may work in all fields):
1. Enter OR for Order Type - Standard
2. Enter ##FS for Sales organization
3. Enter DI for Distribution channel
4. Enter SB for Division
5. Click on Create with reference

You will get:

Click on the Inquiry tab, and then click on

the search icon to search for your customer.

The output as below should appear. If not, scroll tabs to get to the Sales documents by customer:

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 Sales Order Fulfillment Process

Select the Sales documents by customer tab.

Make sure SP (sold-to party) is entered for the
Partner Function, ##FS is entered for the Sales
Organization and 1 is entered for Transaction
group. Click the checkmark button at the
bottom.

The search results similar to the following should appear:

If more than one inquiry appears, find the one you created - look for your dataset
number. Double-click it. In response, SAP enters the inquiry number as below.

Inquiry number automatically entered.

The purchasing order number also
appears. Take a note of it.
Click on copy

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 Sales Order Fulfillment Process

You should get:

Enter WHP1250 as the PO Number, click on

the enter icon, and then click on the save icon.
Do not forget to click on both the enter and
save icons in that order.

Do not forget to click on the enter icon ( ), then click on the save icon ( ) to save the order.
Saving will allow you to continue working on the order.
Click on the exit icon ( ) to return to the SAP Easy Access screen.

3. Create a Delivery for the Sales Order

In the SAP ERP system, a delivery is a status that allows the warehouse to pick, pack, and ship
the order. To create a delivery, follow the menu path:

Logistics ▷Sales and Distribution ▷Shipping and Transportation ▷Outbound Delivery

▷Create ▷Single Document ▷With Reference to Sales Order (double-click)

This will bring up the following screen:

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Enter ##SP for Shipping Point. The Order

number should be entered automatically
(yours may be different).
Click on the enter icon.

The order number should be entered automatically. Enter ##SP for shipping point, and then
click on the enter icon to ( ) get the following screen:

Click on the save icon to create the delivery.

You should get a message similar to the following:

Click on the back icon ( ) to return to the SAP Easy Access screen.

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 Sales Order Fulfillment Process

Stock/Requirements List

To see the current inventory position for our snack bars, we can use the Stock/Requirements list.
The stock requirements list shows the current inventory level, any outstanding sales orders as
well as any planned production orders.

The stock/requirements list also has the purpose of tracking documents that are being. To use it
you create another SAP session. Then you do work in the first session, and switch to the other
with Stock/Requirements list to see a document flow.

To create a new session, place the cursor at the top of the screen. This will reveal another menu.
Then select:
System⭢Create Session

Find the Stock/Requirements list. Go to the SAP menu and select:

Logistics ▷Production ▷MRP ▷Evaluations ▷Stock/Requirements List

You should get the following screen:

Click on the Material field, then

click on the search icon to call up
the search function to find the
material number for your ##
NRG-B.

Calling up the search screen will produce the following pop-up window:

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 Sales Order Fulfillment Process

Search using the Material

Number/Material Description tab, enter
##* in the material description field, and
then click on the enter icon.

Search for your material using your two-digit data set number plus and asterisk (##*), and then
click on the enter icon ( ) to get a list of your materials:

The description for the NRG-B

bars is ## NRG-B, and the
material (number) is ##F110.
Double-click on this line to
select it.

Double-click on the line for the NRG-B bar to select it:

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Enter Plant ##PT, and then

click on the enter icon.

Enter ##PT for plant, then click on the enter icon ( ), which brings the Stock/Requirements list:

Note the current level of on-hand material and your delivery (Delvry).
Double-click on the delivery line.
You should see enough material on hand to complete your order, and your delivery should be
listed. You may also see deliveries from other students. More about the delivery can be learned
by double-clicking on your Delivery line. You get:

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Click on the icon Display element to get

to screen below.

From this delivery, we can see the documents that resulted in this delivery (inquiry and sales
order). In SAP, the Document Flow links all of the documents related to a particular sales order.
The document flow can be accessed by following the pull-down menu path:

Environment⭢Document Flow
which will produce the following screen:

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 Sales Order Fulfillment Process

The Document Flow shows the trail of documents for the sales cycle. For the ## West Hills
order, the cycle started with an inquiry which was used to create a sales order. The processing
status of the Inquiry and Standard order are shown as completed. The Outbound Delivery, which
encompasses the pick, pack and ship tasks, is shown as open.

From the Document flow, you can display any of the documents shown. For example, right-
mouse-click on the inquiry to call up the following pop-up menu:

Click on the inquiry line, and then

click on Display document.

Follows:

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 Sales Order Fulfillment Process

The ability to access any document in the sales process is very useful. If a customer calls with a
question regarding their sales order, the customer service representative can quickly find any
document related to the sales order once they have found one related document. Use the back
icon ( ) repeatedly to return to the Stock/Requirements list.

4. Picking the order

With the delivery created, the order can be picked, packed, and shipped. In a highly automated
warehouse, the picking of the order may be recorded in the SAP system using bar code scanning.
For our exercise, we will manually enter the quantity picked. To do this, switch back to the other
session, and follow the menu path:

Logistics ▷Sales and Distribution ▷Shipping and Transportation ▷Outbound

Delivery ▷Change ▷Single Document

which will bring up the following screen:

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 Sales Order Fulfillment Process

Your delivery number should automatically be entered. Click on the enter icon ( ) to bring up
the following screen:

1. Click on the Picking tab

2. Enter 300 for SLoc (Storage location)
3. Enter 10 for Pick quantity,
4. Click the save icon.

This screen allows you to enter a different pick quantity than there was in the order, in case the
inventory in the warehouse does not match the inventory level shown in the system. Of course,
the idea with an integrated information system like SAP is to have 100% accurate, real-time
inventory data, but mistakes in entering and recording inventory transactions do occur.

We will assume that the inventory is accurate and the order can be completed, so enter 10 for
Pick quantity and 300 for SLoc (Storage location), then click on the save icon ( ). You should
get a message like the following at the bottom of the page:

Switch to the other session, which should still be showing the Stock/Requirements list. Click on
the refresh icon ( ) to see if picking the order has changed anything:

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 Sales Order Fulfillment Process

Storage location is now displayed.

In case you have not noticed, the Stock/Requirements list is changed very little. While we have
picked the cases of snack bars off of the warehouse shelf in preparation for shipping, according
to the SAP system, they are still Fitter Snacker’s snack bars. The only change is that the storage
location for the delivery is now shown. In the next section, we will post the goods issue, which
will signify that the snack bars have left the building.

5. Post Goods Issue

In the SAP logistics terminology, we receive goods into inventory and issue goods from
inventory to the production floor or to the customer. In the accounting world, we record business
transactions by posting them to an account. Thus, when we post the goods issue, we record the
change in stock level and financial position of the company as a result of sending the goods on
their way. To post the goods issue, follow the menu path to get to the screen underneath:

Logistics ▷Sales and Distribution ▷Shipping and Transportation ▷Outbound

Delivery ▷Change ▷Single Document

The document number should be

entered automatically. Click on the
Post goods issue icon.

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After clicking on the Post goods issue icon, the following message should appear at the bottom
of the screen:

Switch to the other session, which should still be showing the Stock/Requirements list. Click on
the refresh icon ( ) to see if posting the goods issue has changed anything:

Delivery is gone, and the inventory

level is reduced by 10 cases.

Posting the goods issue has removed the Delivery from the Stock/Requirements list and reduced
the available inventory level by 10. (If you don’t see all this, try navigating step by step to SAP
menu, and then clicking the selection that you have already made on the start of step 5 above.)

Switch to the other session. You should be at the Change Outbound Delivery screen. If not,
follow the menu path:
Logistics ▷Sales and Distribution ▷Shipping and Transportation ▷Outbound
Delivery ▷Change ▷Single Document

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 Sales Order Fulfillment Process

Your delivery document number should be entered automatically. Follow the pull-down menu
path:
Environment⭢Document Flow

which will produce the following screen:

Compare this document flow to the previous status. The outbound delivery status is now Being
processed, and the picking request and goods issue are both complete. Click on the back icon (
) until you are back at the SAP Easy Access screen. By now, your menus are probably pretty
unwieldy because of the number of paths that have been expanded. To make the menus easier to
use, click on the SAP Menu icon ( ) to restore you menus to their original configuration.

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6. Invoice the Customer

As important as delivering the customer’s order on time and in good condition is properly billing
the customer for the purchase. If we do not invoice the customer, we are not likely to be paid.
Thus, it is important to be able to determine which customers still need to be billed. We can use
the Billing Due List to see all of the customers that need to be invoiced. To create the Billing
Due List, follow the menu path:

Logistics ▷Sales and Distribution ▷Billing ▷Billing Document ▷Process Billing Due
List

which will produce the following screen:

Today’s date will show up automatically in the to

field.
1. Enter a date a week in the past in the Billing
date from field.
2. Enter ##FS for Sales organization
3. Check both Order-related and Delivery-
related check boxes
4. Click DisplayBillList.

You should get this screen:

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 Sales Order Fulfillment Process

Click the first column in the record displayed, and then click on
Collective billing document.

It will not appear that much has happened, but an invoice will be created. To confirm this, use
the exit icon ( ) to return to the SAP Easy Access screen. Follow the menu path:

Logistics ▷Sales and Distribution ▷Shipping and Transportation ▷Outbound

Delivery ▷Display

which will produce the following screen:

Your delivery document number should be entered automatically. Follow the pull-down menu
path:
Environment⭢Document Flow

which will produce the updated Document Flow:

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Click on the Accounting

Document line, and then
click on the Display
document icon.

Notice that the status of the Outbound delivery is now completed. That is because the creation of
the invoice completes the Outbound delivery process. Notice also that an accounting document
has been created. When you display the accounting document, the following screen will appear:

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Notice that three accounts have been affected by the invoice—## West Hills Athletic Club’s
account, the Sales Revenue account, and the Sales Discount account. Click on the back icon ( )
until you have returned to the SAP Easy Access screen.

7. Receive Payment from the Customer

Hopefully the invoice has prompted the customer to send in a payment for the snack bars they
have received. To post the customer payment, follow the menu path:

Accounting ▷Financial Accounting ▷Accounts Receivable ▷Document Entry

▷Incoming Payments

which will bring up the following screen:

Enter today’s date for the document date.

Make sure ##FS is entered for the company code
and USD is entered for the Currency/rate. Enter
100000 for Account under bank data. Enter 2655
for the Amount. Click on the Account field in
Open item selection, and then click on the search
icon.

Make sure the data shown above are entered, and then click on the search icon for Account under
Open item selection:

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Enter ## for Search term, and

then click on the enter icon.
Click Enter.

Double-click on the West Hills

Athletic Club line to select it.

After selecting ## West Hills Athletic Club, click on Process open items ( )
to get:

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Check to see if the amount of the payment has

been assigned to the accounts receivable
document. If not, double-click on the USD
Gross amount.

The SAP system may or may not automatically assign the payment to the accounts payable item.
If not, Double-click on the USD Gross amount, and the system will assign the entire payment to
the invoice. Your screen should look like the following if the amount is correctly assigned:

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Double-click on the USD Gross amount until you achieve this result. Click on the save (post)
icon ( ) to post the payment, then click on the exit icon ( ) to return to the SAP Easy Access
screen. To view the document flow, follow the menu path:

Logistics ▷Sales and Distribution ▷Shipping and Transportation ▷Outbound

Delivery ▷Display

which will again produce the following screen:

Your delivery document number should be entered automatically. Follow the pull-down menu
path:
Environment⭢Document Flow

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The document flow shows that the sales order process is complete. Reaching the above screen
means that you did everything right. You need to print out this screen as a proof.

Use this procedure:

1. Place the cursor on the edge of the final screen
2. Press the keys Ctrl and PrtScn at the same time (this will save the screen image in a
memory)
3. Open a new Microsoft Word file
4. Paste the screen in the Microsoft Word file
5. Type your full name, your student ID, and your log in userID.

Print out the Word file and give it to your instructor as the proof that you completed this lab.

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