Product liability and rights of resources. Uniquely assigned to a company code. Distribution channel It represents means through which sales material reach the customer. It also represent strategic to distributed goods and services to the customer. It can be assigned to more than one sales organisation.
Division A division of a business entity is a portion of that business that operates under a different name. Through it price agreement and sales statistic can also be controlled. A plant must be uniquely assigned to a company code. The assignment between sales org and plant does not have to be unique. Storage location allows for the differentiation of material stock within a plant. Each OD is processed by one shipping point. The sales order defines all the basic details of an order including the price and costing for each ordered item through attached BOM.
The following transaction codes are used S. Click on the tab to enter header details. Tax classification have not been filled. Consider the order type ZPVN for price variance.
Enter the billing document no. Order number is generated. Sales order no to which Click on stock is to be assigned Save 2.
Enter the details of the required material. Sale order needs to be created in the system. Then material stock needs to be checked and if the material to be delivered is available in Sales stock unrestricted use the outbound delivery can be created for the particular schedule line item.
Click on Post Good Issue 1. Then sales order defines all basic details of an order including the price and costing for each ordered item through attached BOM. This process takes time and customer chooses another vendor Loss of Revenue and Customer Dissatisfaction. Now , suppose the product is out of stock and the Sales Team approaches the Production Planning team to manufacture the product for future use. Production Planning Team checks the availability of the raw materials required.
A particular raw material required to manufacture the product is available in the inventory ,but as per the database of the production planning team, the raw material is out of stock. So , they go ahead and buy the raw material. Thus, material as well inventory cost goes up. Once the raw material is available ,the shop floor department suddenly realize they are short of workers They approach the HR , who in turn hire temporary employees at higher than market rates.
The production planning department fails to update the finance department on the materials they have purchased. The finance department defaults the payment deadline set by the vendor causing the company loss of its repute and even inviting a possible legal action. This is just a few of many a problems with decentralized systems. Some Major problems with the decentralized system are Numerous disparate information systems are developed individually over time which are difficult to maintain Integrating the data is time and money consuming Inconsistencies and duplication of data Lack of timely information leads to customer dissatisfaction , loss of revenue and repute High Inventory , material and human resource cost.
These are some major drawbacks for which we need a solution. Well the Solution lies in Centralized Systems ie. Lets look at the same business process again to understand how a Centralized Enterprise System helps overcoming problems posed by a Decentralized Enterprise System In this Case , all departments update a Central Information System When Customer approaches the sales team to buy a product on an urgent basis The Sales Team has real-time information access to the products in inventory which is updated by the Inventory Department in the Centralized System Sales Team respond on time leading to Increased Revenue and Customer Delight In case , manufacturing is required , the Sales Team update the Centralized Database.
Production Planning Department is auto updated by the Centralized Database for requirements. In case of shortage of workforce HR team starts recruitment process with considerable lead time to hire a suitable candidate at market price. Thus labor cost goes down Vendors can directly submit their invoices to the Central Enterprise System which can be accessed by the Finance Department.
Thus payments are made on time and possible legal actions are avoided Thekey benefits of the centralized system are It Eliminates the duplication, discontinuity and redundancy in data Provides information across departments in real time. Provides control over various business processes Increases productivity, better inventory management , promotes quality ,reduced material cost , effective human resources management, reduced overheads boosts profits Better Customer Interaction , increased throughput.
But SAP now offers variety of products to address varied needs of an organization. It delivers pricing design capabilities, high performance rating and convergent balance management. Enterprise Resource Planning:- A sound foundation is necessary to compete and win in the global marketplace. SAP Environment, Health, and Safety Management :- It supports environmental, occupational and product safety processes, regulatory compliance, and corporate responsibility.
This is accomplished by embedding corporate policies, compliance, and environmental, health and safety capabilities with global business processes for human resources, logistics, production and finance. Furthermore, it helps you to minimize cost and corporate risk exposure.
You can also analyze multiple objects, for example, batches, in one run. SAP Product Life Cycle Management:- To survive in an ever-changing global environment, creating and delivering innovative and market differentiating products and services is what distinguishes your company from the competition.
It deals with the supply base as a whole to constantly determine the right mix of suppliers. Supply Chain Management :- You face enormous pressure to reduce costs while increasing innovation and improving customer service and responsiveness. SAP Supply Chain Management SAP SCM enables collaboration, planning, execution, and coordination of the entire supply network, empowering you to adapt your supply chain processes to an ever-changing competitive environment.
This allows you to develop long-term relationships with all those suppliers that have proven themselves to be reliable partners. Governance, Risk and Compliance:- Risk is unavoidable, but it can be managed.
With governance, risk, and compliance GRC , businesses can strategically balance risk and opportunity. Typically, this process repeats every month and involves many participants including Sales, Marketing, Finance, Demand Planning, and Supply Chain Planning. SAP Transportation Management :- It supports you in all activities connected with the physical transportation of goods from one location to another.
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