This accounting entry is posted in SAP FI. Customer invoice is posted in SAP which books revenue and account receivable against the customer. Since company expects money from customer for sale hence revenue is booked. When company bills customer a billing document is generated in SAP SD. Once goods are moved out of company, documents are posted in SAP MM which ensures that inventory is adjusted and financial impact is also recorded in SAP FI. Delivery document is used to track picking, packing and finally goods issue. Goods are handed over to transporter and status of delivery is tracked throughout, a delivery document is created in SAP SD. When company receives order from customer a sales order is created in SAP SD module. Below diagram explains how SAP can help in handling above business scenario. Now how do we replicate above process in SAP. Quality check is performed on returned goods to decide if goods are to be scraped or rework is needed before adding it to inventory.īusiness process is a well-defined set of activities to be performed to handle a particular business scenario. Now customer returns some of the goods due to quality issues. Company has to pay transporter for service. Company bills the customer and customer pays against the bill. Products is loaded on ship/truck and handed over to transporter for delivery. Company selling product to its wholesale customersĬompany receives order for products from wholesale customer. Let’s take examples to understand the meaning of business process how SAP contributes in enabling the business process. SAP basically helps in keeping track of all the activities performed and streamlining activities to be performed by sharing up to date information. Data & information generated at each activity is captured and well documented. Initiation of one activity may depend upon completion of previous activity or multiple activities may be performed in parallel.Įvery organization has various departments (Human Resource, production, material, sales & distribution, finance etc.) Each department performs certain set of activities/ task.īusiness performs various activities by making use of SAP for processing data & sharing information. This sequence of activities is called business process. In order to achieve this organization has to perform certain interrelated activities. Every organization either provides services or sells product.
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