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Difference between Delivery, Sales order and Shipment

Hi

I would like to know difference between sales document, delivery document and shipment.

When is the delivery created? What data will it have?

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  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Sep 07, 2007 at 10:12 AM

    Hi

    <b>Sales Documents </b>

    Sales-related business transactions are recorded in the system as sales documents. These are grouped into four categories:

    • Pre-sales documents: inquiries and quotations

    • Sales orders

    • Outline agreements, such as contracts and scheduling agreements

    • Customer problems and complaints, leading to free-of-charge deliveries and credit memo requests

    If your particular business processes require it, you can process deliveries and billing documents directly from a sales document. In addition, some sales documents, such as cash sales and rush orders automatically trigger the creation of subsequent delivery and billing documents.

    Basic Functions Within Sales Order Processing

    During sales order processing, the system carries out basic functions, such as:

    • Monitoring sales transactions

    • Checking for availability

    • Transferring requirements to materials planning (MRP)

    • Delivery scheduling

    • Calculating pricing and taxes

    • Checking credit limits

    • Creating printed or electronically transmitted documents (confirmations and so on)

    <b>Delivery Processing</b>

    In its role as central object of the goods issue process, the outbound delivery supports all shipping activities including picking, packing, transportation and goods issue. During the outbound delivery process, shipping-planning information is recorded, status of shipping activities is monitored and data accumulated during shipping processing is documented. When the outbound delivery is created, the shipping activities, such as picking or delivery scheduling, are initiated, and data that is generated during shipping processing is included in the delivery.

    Range of Functions

    An outbound delivery can be created as follows:

    • With reference to a sales order

    • With reference to a stock transport order

    • With reference to a subcontract order

    <b>Shipping </b>

    Shipping 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)

    • Creating and processing outbound deliveries

    • 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

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  • Posted on Sep 07, 2007 at 10:59 AM

    Hi ,

    I will explain with an example.you are the dealer for the cars.An order is places for honda car.this is sales order.

    and they will requset you to give them the car on a particular date that is their requested delivery date .But you need to look for the availabity of the car if you dnt have it need to check when can you have it to deliver it to them.You propose them with one datethat is the actual delivery date.

    Delivey contains the date when you are going to deliver them and whom you are delivering it .

    Shipping documents are required for transporting and picking products. They contain logistics data formatted according to the company's requirements, generated during bundling and container packing

    Sail

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    • Hi

      Thanks for your explanation.

      I have some doubts.

      1. Delivery contains the actual delivery date, which are decided based on material availability and other factors which are sent to customer. Am I right?

      2. But shipment will also have the delivery date which is based on the availability of vehicles. Will this delivery date from shipment and the actual delivery date in the delivery document be the same or different.

      3. HOw do I interrelate the sales order and the shipments planned for the sales order.Seems that there is no relation between delivery and shipment.

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