The exercise on SAP Order to Cash Flow is based on the following slideshow. You should have completed the following SAP SD Training sessions in order to answer this exercise. For other SAP Training areas, please visit our Magna Training home page.
The following questions are based on the examples ( Bestbuy and Apple ) taught in the class. The names of these companies are purely used for illustration purposes only and the SAP SD Training tutor or Magna Training are not related in any way to these companies. The are only used to give the students a feel for some real time SAP SD Training scenarios.
- Bestbuy wants to buy 10,000 newly released version of iPods from Apple Inc, California. Bestbuy is currently not aware of the price or availability. What should Bestbuy do now ?
- Bestbuy is aware that there are many resellers that sell iPods to them ( Apart from the parent company Apple Inc ). Bestbuy would already be inquiring with all these resellers ( Say Reseller A , B and C ). Assuming the reseller A had the best price, Best buy now wants to get a formal quotation from Reseller A. What should Bestbuy do now ?
- Assuming Reseller A uses SAP , create an inquiring in the system ( Related to Question No. 1 ) for Customer No. 1400 , for material M-01 with quantity 10,000 ( Assuming Best buy is Customer No. 1400 and iPods are M-01 )
- Create a quotation referring to the inquiry created in Question No. 3 ?
- Let’s assume Bestbuy liked the quotation’s terms and wish to buy the iPods from Reseller A. Reseller A will now convert the quotation to a sales order . Do the same and specify the order number.
- Deliver the Sales Order created in Question No. 5 above and specify the delivery number.
- Bill the Delivery created in Question No. 6 above and specify the billing document number.
- iPods are flying fast off the shelves and Apple Inc is not able to keep up with the speed. Bestbuy being a smart company, wants to enter into a contract with Reseller A to lock down the price and to ensure that it’s supplies are full for 6 months of demand for a quantity of 200,000 iPods. This will make sure that Bestbuy can anytime for the next 6 months demand the iPods ( until a quantity of 200,000 ). Which kind of document should be created in the system now ?
- Create a contract ( with a validity of 6 months ) for material M-01 with a quantity of 200,000 for customer 1400. Specify the SAP contract #
- It is January now and Best buy wants 40,000 of the iPods delivered from Reseller A ( referring to the contract created in step No. 9 above ) . Create a release order for 40,000 referring to the contract. Specify the SAP Release Order # ?
- It is February now and best buy now wants another 50,000 ipods delivered. Create another release order referring to the same contract #. Specify the SAP Release Order # ?
- Apple is having trouble keeping up with the demand for the newly released iPods. On the manufacturing side, Samsung the manufacturer is having difficulty keeping up with the demand for the A4 Processor used in iPods. Apple’s marketing team does some market research and based on previous rush for iPods estimates that they will require to make 3 million iPods in January. To ensure that Samsung will be able to keep up with the demand, Apple will let Samsung know that they will require 3 million A4 Processors in the month of January. However Apple will not require all the iPods on Jan 1st. Assuming they require 100,000 Processors a day, Apple will direct Samsung to deliver 700,000 A4 Processors to be delivered every week for 4 weeks in January.
- As discussed in the class, which type of document will you need to create ?
- Does this type of document require you create ‘Release Orders’ ? If not, how will the deliveries be created every week ?
- On the Sales side, let’s say Apple now needs to deliver 10,000 iPods for an order # 1234 to Reseller A. Apple has a warehouse in the Bay Area . The folks at the warehouse go pick up the goods from the exact location and put them in the staging area. What is this logistics process called in SAP ?
- After placing the goods in the staging area, the iPods should go through the process of ___________ before they can be on the truck. What is the Process ?
- The processing of placing the goods in the truck/freight train is called __________
- After loading the goods, the accounting process that fully completes the delivery is called ___________
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