Saturday, May 11, 2013

SAP : Sales Module






SAP stands for Systems Applications and Products in Data Processing. SAP system comprises of a number of fully integrated modules, which covers virtually every aspect of the business management. In the simple words, SAP is ERP software that manages business operations and process throughout integrated information system which is very useful may give value-added for the organizations.


Sales module is part of the SAP system. Below is the main component of sales module:
1.         Sales pricing control.
2.         Sales contract handling.
3.         Sales order control.
4.         Sales invoicing


Sale Pricing Control
Sales pricing control helps to maintain prices for items, details of discount structure and special discount given to some category of customers. A price book originates with base price for the item. A single level discount rule with a minimum or maximum quantity or pricing break is attached to price book. Additional pricing conditions such as category of customer and delivery schedule may be formulated in a matrix format, for attaching to the price book.

Sales Contract Handling
This process relates to recording long term agreement with customer for price, discount, and delivery order. Normally, a validity period and minimum committed quantity forms part of the contract. Cumulative called quantity by the customer, delivered quantity and invoiced quantity are maintained in the system for control purpose. The easy way of making a contract for existing customer is by copying an old contract and doing modification in the system. For a new customer, data related to header and lines are entered in the requisite session. The system helps in evaluating the contract at any given time, and customer may be reminded for any failure to meet their part of commitment.

Sales Order Control
This process allows a company to manage sales operations quickly and efficiently. This process handles regular sales order, cost order, customer return and collect order. Throughout the templates, the system allows quick data entry process to manage products ranging from standard to Engineering to Order (ETO). SAP system helps in identifying when a product is available for delivery and making necessary commitment or allocation for the same. Rebate and commission process enables automatic calculation of commission to be paid to sales agent.

Sales Invoicing
This process facilitate billing functions such as issuing of invoices based on goods or services provided, generating pro-forma invoices, issuing credit notes resulting corresponding entries in an accounts receivable and control account of general ledger.

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