Skip to Content
author's profile photo
Former Member

What is a Business Process?

What is a Business Process?

According to me it Depends upon client Requirements. ir Inq-Qt-Order-Del-Billing.

Correct me If I am wrong.

Add comment
10|10000 characters needed characters exceeded

  • Follow
  • Get RSS Feed

7 Answers

  • author's profile photo
    Former Member
    Posted on Aug 22, 2007 at 10:29 AM

    Hi

    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.

    Reward if it helps

    Regards

    Prasanna R

    Add comment
    10|10000 characters needed characters exceeded

  • author's profile photo
    Former Member
    Posted on Aug 22, 2007 at 10:34 AM

    hi

    Businesss Process : any activity or event which takes under business can be termed as business process..

    ====

    Inquiry -> Quotation ->Sales Order ->Delivery ->Invoice -> Return -> Credit memo

    Transaction Codes

    VA01 Create Sales/Returns Order

    VA02 Change Order

    VA03 Display Sales Order

    VA11 Create Inquiry

    VA12 Change Inquiry

    VA13 Display Inquiry

    VA21 Create Quotation

    VA22 Change Quotation

    VA23 Display Quotation

    VA41 Create Contract

    VA41 Change Contract

    VA43 Display Contract

    VF01 Create Billing Document

    VF02 Change Billing Document

    VF03 Display Billing Document

    VF11 Cancel Billing Document

    VF21 Create Invoice List

    VF22 Change Invoice List

    VF22 Display Invoice List

    VK11 Maintain Pricing

    VK15 Create Condition Records(Transaction used to enter multiple sales conditions)

    VL01N Create Delivery

    VL02N Change Delivery

    VL03N Display Delivery

    Inquiry

    quotation

    contrancts and Scheduling agreements

    (Value contract or quantity contract)

    Sales order

    Delivery - Pick - pack - shipment

    Post goods issue

    Billing - release to accounting

    [Check the document flow in table VBFA ]

    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.

    ====

    say for example below are some of the important business processes...

    Free goods deetermination,

    BOM processing,

    Material listing and Exclusion,

    Material determination,

    Outline agreements,

    Special sales order.

    Free Goods Determination (FG)

    Inclusive: - Giving a free item of same material is called inclusive.

    Maintaining condition records for inclusive: -

    Logistics

    Sales and Distribution

    Master data

    Conditions

    Free Goods

    VBN1 – Create

    Enter the discount type [NA00] (Customer/Material)

    Material: - enter the material, which we are giving free item.

    Min quantity: - Enter the minimum quantity for which the customer how to place the order to get the free goods. [10]

    From: - The free goods quantity specifies the amount for which free goods are granted in the sales documents. [10]

    Unit of measure: - pc, kg, and cm….

    Are free goods: - specifies how many materials we are giving as free [1]

    Calculation rule: - specify pro rata basis

    Free Goods: - specify [1] inclusive rebate with item generation

    Exclusive: - Giving a free item of different material is called exclusive.

    Maintaining condition records for exclusive: -

    Logistics

    Sales and Distribution

    Master data

    Conditions

    Free Goods

    VBN1 – Create

    Enter the discount type NA00

    Select the button exclusive

    Enter the material, min quantity, for, unit of measure, additional free goods.

    Additional free goods: - specifies how many additional materials we are giving as free.

    Calculation Rule: - pro rata 1

    Additional material free good: - Specifies the other material, which we are giving as free.

    M-11, 10, 10, 1, pro rata, 2, m-10 save.

    Note: - In exclusive we can also enter the same material as free item.

    Note: - inclusive takes 10 as 9+1 & Exclusive takes 10 as 10 + 1.

    The free goods concept is based on condition technique.

    SPRO

    Sales and Distribution

    Basic Functions

    Free Goods

    Condition technique for free goods

    Maintain condition tables [V/N2]

    Maintain Access Sequences

    Maintain Condition Types

    Maintain Pricing Procedures

    Activate Free Goods determination [V/N6]

    We need to assign the procedure to the combination of Sales Organisation, Distribution Channel, division, Document Pricing Procedure, Customer Pricing Procedure.

    BOM (Bills of Material)

    The item category group of a BOM item must be either “ERLA /LUMF.”

    Defining BOM: -

    Logistics

    Sales and Distribution

    Master Data

    Products

    Bills of Material

    Bill of Material

    Material BOM

    CS01 – Create.

    Enter the Material

    Enter the Plant

    BOM usage [5] Sales and Distribution

    Enter the component & 0.

    In the component field enter the materials, which constitutes of the main material and enter the corresponding quantity.

    For the BOM to be exploded in the sales document the following setting has to be done.

    1) When the item Category group is “ERLA”, the item category of the BOM item is “TAQ”. In the definition of “TAQ” we need to take the value “A” Explodes single level BOM in the field structure scope.

    2) If the item Category group is “LUMF”, the item category of the BOM item is “TAP”. In the definition of which the same above setting has to be done.

    I) If the item category group is “ERLA”, it will bill the main item but not the components. For this the following setting has to be done.

    The item category of the BOM item is “TAQ”, which is made relevant for pricing and item category of the components is “TAE”, which is relevant for pricing.

    II) Item category group is “LUMF” bills components but not the main item. For this the following setting has to be done.

    The item category of the main item is “TAP”, which is not relevant for pricing and item category of the components is “TAN”, which is relevant for pricing.

    S & D, Sales, Assign item category group

    Sales Doc Type Item Group USA Higher Level Item Item Category

    OR ERLA -


    -


    TAQ

    OR ERLA -


    TAQ TAE

    OR LUMF -


    -


    TAP

    OR LUMF -


    TAP TAN

    Inter CompanyIV Sales

    Material Listing and Exclusion

    Material listing: - whatever the materials that are placed in listing for a customer he can access those materials only.

    Maintaining Records for listing: -

    Logistics

    Sales and Distribution

    Products

    Listing / Exclusion

    VB01 – Create

    Enter the Listing type A001and select the key combination.

    Enter the customer and place the required materials in listing and save it.

    Material Exclusion: -

    Maintaining Records for Exclusion: -

    Logistics

    Sales and Distribution

    Products

    Listing / Exclusion

    VB01 – Create

    Enter the exclusion type B001

    Place the required materials in exclusion.

    Note: - Exclusion is given preference over listing.

    This concept is based on condition technique.

    SPRO

    Sales and Distribution

    Basic Functions

    Listing / Exclusion

    Sl. No. Listing Exclusion

    1 Customer / Material Customer / Material

    2 A – 1 A – 2

    3 A001 B001

    4 A002 B002

    Step 1: - Maintain condition tables for listing / Exclusion [OV06]

    Step 2: - Maintain Access sequences for listing / exclusion

    Step 3: - Maintain listing / exclusion types.

    Step 4: - Procedures for maintaining listing / exclusion

    Step 5: - Activate listing / exclusion by sales document [OV04]

    Material Determination: - Substituting one product with other product is called material determination.

    Maintaining the records for Material Determination: -

    SPRO

    Logistics

    Sales and Distribution

    Master data

    Products

    Material Determination

    VB11 – Create.

    Enter the determination type [A001] (Material Entered).

    Material Entered: - Here enter the original material which has to be substituted.

    Material: - Enter the material with which we want to substitute the main material.

    Reason for Substitution: - specifies the reason why the system automatically carried out material substitution.

    To enter multiple materials as substitution select the icon alternative materials.

    This concept is based on condition technique.

    SPRO

    Sales and Distribution

    Basic Functions

    Material Determination

    Maintain prerequisites for material determination.

    Create condition tables [OV16]

    Maintain access sequences

    Define condition types

    Maintain procedure

    SPRO

    Sales and Distribution

    Basic Functions

    Material Determination

    Assign procedures to sales document types [OV14]

    Defining the reason for substitution: -

    SPRO

    Sales and Distribution

    Basic Functions

    Material Determination

    Define substitution reasons [OVRQ]

    Go to new entries and define

    Substitution reason: - Specify the substitution reason [0001]

    Description: - Advertising campaign

    Entry: - If we check this field the system prints the name or number of the original material on the corresponding output.

    Warning: - If we check this field the system displays a warning message before substituting the material.

    Strategy: - Controls whether the product selection should occur automatically in the background or whether the alternative materials should be offered for a selection in dialog box.

    Out come: - Controls whether the out come of product selection should replace the original entry or whether it should be recorded as a sub item of the original entry.

    OUTLINE AGREEMENTS

    1) Scheduling Agreements: - It’s an outline agreement with the customer containing the delivery dates and the quantities. These are entered as schedule lines in the scheduling agreement.

    We can create the schedule lines when we create the scheduling agreement or we can create them later.

    We fulfill a scheduling agreement by creating the deliveries in the schedule as they become due.

    Creating a Scheduling Agreement: -

    Logistics

    Sales and Distribution

    Sales

    Scheduling Agreement

    VA31 – Create

    Scheduling Agreement type “DS”

    2) Contracts: - These are the outline customer agreements that display when the materials or services are sold within a certain time period.

    a) Quantity Contracts: - It’s an agreement that your customer will order a certain quantity of a product from the company during a specified period.

    The contract contains basic quantity and price information but does not specify delivery dates or quantities.

    b) Value Contracts: - It’s a contractual agreement with a customer that contains the materials or services that they may receive within a time period and “Up to a target value”.

    A value contract can contain certain materials or a group of materials. [Assortment Module]

    c) Service Contracts: - It’s an agreement that contains the conditions for offering a certain service to the customer. We can manage rental and maintenance contracts in the standard R/3 system.

    A service contract contains validity dates cancellation conditions price agreements and the information on the possible follow up action.

    d) Master contracts: - It’s a document in which we can group contracts together as lower level contracts. The master contract contains the general terms, which apply for all lower level contracts.

    Creating Contracts: -

    SPRO

    Sales and Distribution

    Sales

    Contract

    VA41 – Create

    Contract Types: -

    Master ContractGK

    QuantityNMS Contract

    Value ContractZWK1

    Value Contract GeneralWK1

    WK2 Material relevant value contract

    Service and MaintainSC contract

    SPECIAL SALES ORDERS

    Cash Sale: - It’s an order type which we use, when the customer orders picks up the goods and pays for the goods immediately the delivery is processed as soon as the order has been entered and the billing is related to the order.

    Creating Cash sale: -

    VA01

    Order type “CS” or “BV” and everything is same as sales order

    Item Category – BVN

    Note: - In BVN the field “Credit Active” is not checked.

    Note: - when we save the cash sale document the system will automatically create the delivery document. For this the following customizing setting has to be done.

    In the definition of the document type CS we need to take the value “X” [Create delivery immediately if the quantity conformed for today] in the field “Immediate Delivery”.

    Rush Order: - In the rush order transaction the goods are delivered on the same day as the order is placed.

    When we save the rush order document the delivery is automatically created and billing is related to delivery.

    Creating Rush Order: -

    VA01

    Document type “RO”

    Item Category “TAN”

    Note: - For the delivery to be automatically created the following setting has

    to be done.

    In the definition of document type “RO” take the value “X” in the field “Immediate Delivery”

    Reward if Useful

    Thanx & Regards.

    Naren..

    Add comment
    10|10000 characters needed characters exceeded

  • author's profile photo
    Former Member
    Posted on Aug 22, 2007 at 10:37 AM

    Dear Farhan,

    Business process is the accumulation of all the steps followed by a company.

    Lets say a FMCG company ( Fast Moving Consumer's Good) Selling Bathing soap. They decide that they will go to the retail market through whole salers. So in this case their direct customers are these whole salers. So there will be no inquiry in general in this case, because the price is fixed. So there will only be Quotation, sales order, delivery and Billing.

    In the same case if a company is involved in service lets say Airtel, Hutch etc there will not be delivery. I mean you go to the Their office and ask them to give you recharge or validity for 1 month. you pay them the moeny.

    So these are some of the very basic examples of Business Process.

    Hope this helps you.

    Do award points if you found them useful.

    Regards,

    Rakesh

    P.S. you can send me a mail at my mail id rakeshsinghchauhan@gmail.com for any specific details

    Add comment
    10|10000 characters needed characters exceeded

  • author's profile photo
    Former Member
    Posted on Aug 22, 2007 at 11:10 AM

    Hi

    clients business process is nothing but what and how he is carrying the functions of his organization. From the SD point of view, we mainly concentrate on his sales functions and come out with an idea called as is process.

    This we try to map to SAP and come out with a TO BE process and present to the client. Upon acceptance that we are able to represent the clients business functions properly we take a sign off and go with blue print and realization and finally go live and support.

    AS IS study and TO BE is a part of the ASAP methodology followed for SAP implementations.

    Examples can be any sales process like a pharma company, textile, services etc.

    Refer the sdn thread links below

    business-process

    https://forums.sdn.sap.com/click.jspa?searchID=4692474&messageID=3588133

    Add comment
    10|10000 characters needed characters exceeded

  • author's profile photo
    Former Member
    Posted on Aug 22, 2007 at 11:10 AM

    Hi

    Business Process varies from Client to Client:

    Some of the Standard Business Process are as under:-

    1. Normal Sales Order

    Process: Inquiry (optional) --> Quotation (optional) --> Sales Order --> Delivery (Create outbound Delivery --> Picking (optional) --> Packing (optional) --> Post Goods issue(PGI)) --> Billing Document

    2. Third Party Scenario

    Process: Inquiry (optional) --> Quotation (optional) --> Sales Order --> Purchase Order (based on Purchase Requisition created in Sales order) --> Goods receipt (Optional - based on configuration) --> Invoice receipt --> Billing Document

    3. Export Sales Order:

    Process: Inquiry (optional) --> Quotation (optional) --> Sales Order --> Proforma Invoice (optional) --> Delivery (Create outbound Delivery --> Picking (optional) --> Packing (optional) --> Post Goods issue(PGI)) --> Proforma Invoice (optional) --> Billing Document

    4. Scrap Sale:

    Process: Inquiry (optional) --> Quotation (optional) --> Sales Order --> Delivery (Create outbound Delivery --> Picking (optional) --> Packing (optional) --> Post Goods issue(PGI)) --> Billing Document

    5. Sales Returns:

    Process: Return Sales Order --> ReturnDelivery (Create outbound Delivery --> Post Goods Receipt (PGR))

    & to issue Credit note for returns:

    Process: Return Sales Order (Change Mode - Remove Billing Block) --> Billing Document

    The above are some process. These vary from client to client. To have a better feel of process as weel as configuration, please refer to:

    Link: http://help.sap.com/

    Path: SAP Best Practices --> Baseline Packages --> Based on SAP ECC 5.00 --> Select Country: for eg, Localized for India --> Technical Information --> Building Blocks --> Select Country for eg, India --> List of Basic Configuration & scenarios will be listed.

    Select the required basic configuration / scenario. These will consist of overview, configuration guide, business process, master data etc

    sd-business-process

    Add comment
    10|10000 characters needed characters exceeded

  • author's profile photo
    Former Member
    Posted on Aug 22, 2007 at 01:27 PM

    Pyare Dost,

    As we all know that every single one company has its own variety of functioning. Hence in regular life a business process is just a group of activity or any segment of over all business that occurs on daily basis. Now in SAP terminology this business process is the same thing mapped in SAP. Now we will talk in term of sales and marketing in general. Suppose if our client’s requirement is to give billing document even before the delivery it’s an example of business process. In normal business process it goes like as you are saying In-Qt-Order-Del-Billing. However if it require you may change that in SAP.

    Then as an another example suppose you have the return practice, or make to order process or third party scenario or individual purchase order scenario, these all are different business scenario as well as business process.

    In real time you have a sales order process where your delivery dates will be confirmed for a longer time period so that’s a business process in real time and when we map that in SAP, it becomes Scheduling Agreement and it represent the business process in SAP.

    There are so many instances when we are not able to map the real time business scenario in SAP business Process. And hence generally when we talk or you go for interview mostly you are supposed to talk on your SAP business Process what you have already mapped in SAP and not the real time business practice until they are not very specifically asking that.

    If you have further queries please ask here or directly mail me on rajansinh@gmail.com and I could reply only between 1 to 3 pm at Indian times only.

    Add comment
    10|10000 characters needed characters exceeded

  • author's profile photo
    Former Member
    Posted on Aug 22, 2007 at 01:44 PM

    You are absolutely correct.

    To add on further, the business process can be as follows:

    1. Normal Sales Cycle

    2. Export Sales Cycle

    3. Inter-company Sales Cycle

    4. Inter-company Stock Transfer

    5. Stock Transfer between plants

    6. Third Party Sales Cycle

    7. Rush Order Sales Cycle

    & so on ......

    Regards,

    Rajesh Banka

    Reward points if helpful.

    Add comment
    10|10000 characters needed characters exceeded