Use
Material determination enables the automatic substitution of materials in sales documents during sales order processing. For example, during the course of a sales promotion, the system can, during sales order entry, automatically substitute a material that has promotional packaging. A consumer product may have a special wrapper for, for example, the Christmas season. Using material determination, the system substitutes the material only during the specified period.
The following graphic illustrates the determination of a promotional product in the sales order.
In addition, you can use material determination if you want the system to automatically substitute, for example:
• customer-specific product numbers with your own material numbers
• International Article Numbers (EANs) with your own material numbers
• Substituting discontinued materials with newer materials Account Determination (Billing)
Purpose
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.
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• Creation of:
o Invoices based on deliveries or services o Issue credit and debit memos
o Pro forma invoices
• Cancel billing transactions
• Comprehensive pricing functions
• Issue rebates
• Transfer billing data to Financial Accounting (FI) Billing Document :
Umbrella term for invoices, credit memos, debit memos, pro forma invoices and cancellation documents.
The billing document is created with reference to a preceding document, in order to create an invoice or a credit memo, for example.
The billing document contains the following data: Structure
All billing documents have the same structure. They are made up of a document header and any number of items. The following figure shows how billing documents are structured.
Header
In the header, you find general data valid for the entire billing document. For example,
• Identification number of the payer
• Billing date
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• Document currency
• Terms of payment and Incoterms
• Partner numbers, such as the identification number of the sold-to party
• Pricing elements Items
In the items, you find data that applies to one particular item. For example,
• Material number
• Billing quantity
• Net value of the individual items
• Weight and volume
• Number of the reference document for the billing document (for example, the number of the delivery on which the billing document is based)
• Pricing elements relevant for the individual items The billing document is controlled via the billing type. Integration
When you create a billing document, the billing data is forwarded to Financial Accounting.
Integration with Accounting
Integration with Accounting consists of forwarding billing data to
• Financial Accounting (FI - Accounts Receivable)
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When you create a billing document, the system automatically creates all relevant accounting documents for:
• General Ledger • Profit center • Profitability Analysis • Cost Accounting • Accounting
Shipping :
Implementation OptionsShipping is an important part of the logistics chain in which guaranteed customer service and distribution planning support play major roles.
In shipping processing, all delivery procedure decisions can be made at the start of the process by
• Taking into account general business agreements with your customer
• Recording special material requests
• Defining shipping conditions in the sales order
The result is an efficient and largely automatic shipping process in which manual changes are only necessary under certain circumstances.
Integration
The Shipping component is integrated under the Logistics Execution component. Shipping is a subsequent activity of the Sales component.
Range of Functions
The shipping module supports the following functions, which include but are not limited to:
• Deadline monitoring for reference documents due for shipment (sales orders and purchase orders, for instance)
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• Planning and monitoring of worklists for shipping activities
• Monitoring material availability and processing outstanding orders
• Monitoring the warehouse's capacity situation
• Picking (with optional link to the Warehouse Management system)
• Packing deliveries
• Information support for transportation planning
• Support of foreign trade requirements
• Printing and transmitting shipping documents
• Processing goods issue
• Controlling using overviews of
o Deliveries currently in process
o Activities that still are to be carried out o Possible bottlenecks
A list of deliveries posted as goods issue in the shipping department could be used to form a worklist for the billing department.
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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.
Packing
Packing is part of delivery- and shipment processing. Range of Functions
As an example, you could pack delivery items in boxes, pack the boxes on pallets for delivery to the customer, and load the pallets onto a truck.
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• Update the stock situation of packing materials
• Monitor returnable packaging stocks at the customer's or forwarding agent's place of business
• Help you find you what was in a particular container (for example, if a customer maintains that they have received an incomplete delivery)
• Make sure that the weight and volume limits have been adhered to
• Ensure that products have been packed correctly 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.
Range of Functions
The outbound delivery forms the basis of goods issue posting. The data required for goods issue posting is copied from the outbound delivery into the goods issue document, which cannot be changed manually. Any changes must be made in the outbound delivery itself. In this way, you can be sure that the goods issue document is an accurate reflection of the outbound delivery.
When you post goods issue for an outbound delivery, the following functions are carried out on the basis of the goods issue document:
• Warehouse stock of the material is reduced by the delivery quantity
• Value changes are posted to the balance sheet account in inventory accounting
• Requirements are reduced by the delivery quantity
• The serial number status is updated
• Goods issue posting is automatically recorded in the document flow
• Stock determination is executed for the vendor's consignment stock
• A worklist for the proof of delivery is generated
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After goods issue is posted for an outbound delivery, the scope for changing the delivery document becomes very limited. This prevents there being any discrepancies between the goods issue document and the outbound delivery.