Understanding the Concept of Sales Order in SAP

What Is Sales Order In Sap

A sales order is a crucial document in the SAP system that plays a significant role in managing and tracking customer orders. It serves as a formal request from a customer to purchase products or services from a company. The sales order captures important information such as the items ordered, quantities, pricing details, delivery dates, and payment terms. This article provides an overview of what a sales order is in SAP and explores its key features and functionalities within the system.

Sales Order in SAP SD

In SAP SD, a sales order can be generated in two ways: with or without referring to any previous documents.

In SAP, a sales order can be created based on certain conditions. These conditions include having a valid quotation within the specified time frame or having contracts with values and quantities that are still within their validity dates or have not exceeded the terms of the contract.

Understanding the Significance of Sales Orders

A sales order, also known as SO, is a request made by a business or sole trader to a customer. It can be for either products or services. Due to the diverse range of businesses, there are multiple ways in which these orders can be fulfilled.

– A sales order is issued by a business or sole trader.

– It can be for products and/or services.

– There are various methods to fulfill these orders due to the wide variety of businesses.

Creating SAP SD Sales Order: A Step-by-Step Guide

In SAP, there are various ways to access a specific transaction.

You can directly input the transaction code (T-Code) into the transaction bar on the SAP screen.

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In SAP, you can access the transaction bar by either using the navigation tree or directly navigating through it.

Here is a guide on how to access the sales order window/screen.

To create a Sales Order in SAP, you can input VA01 into the Transaction Command Field.

Access the VA01 transaction by navigating through the tree structure.

The VA01 transaction in the SAP menu is used to create quotations.

After accessing the Sales Order: Creation Initial screen, it is necessary to choose the appropriate Order Type. Each order type has its own features and display options, which are determined by the configuration settings made in the SAP backend.

Please note, any field having a ‘tick mark’ means its mandatory and it has to be populated else system would not allow you to proceed further.

To select the desired Order type, you can press F4 on the corresponding field and it will display a list of available options.

Select the relevant Order type to proceed to the next step.

Fill in the Sales Area section with the appropriate details of your Sales Organization, Distribution Channel, and Division.

To ensure that only the appropriate sales document types are shown in the List of Values (LoV), it is advisable to fill in the relevant Sales Organization, Distribution Channel, and Division before selecting the corresponding Order type. This will narrow down the options and display only those sales document types that are applicable to the chosen Sales Organization, Distribution Channel, and Division.

To generate a Sales Order using a Quotation or Contract as a reference, simply click on the designated button.

To begin, input the document number and choose either to select a specific item from a referencing document with multiple items for copying into the sales order or proceed directly. In this scenario, we will opt to create the sales order directly. Press Enter to proceed and access the Sales Order screen. Upon pressing Enter, you will be directed to the sales order screen.

What Does SAP Sales Order Involve in Terms of Master Data?

When a sales order is created, various master data is utilized to gather necessary information and fill in the appropriate fields.

What is Customer Master Data in SAP?

The details included in a sales order in SAP typically consist of the following: information about the material, such as its description; the unit of measure or SKU used for stock keeping; the transportation group associated with it; the loading group which determines how it is handled during transport (e.g., by forklift or manual handling); and any relevant taxation information.

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What Is Customer Material Info Records in SAP?

In SAP, the Sold-To Party refers to the entity that has made an inquiry or placed an order for goods. The Ship-To Party is the recipient of the goods and where they will be delivered. The Bill-To Party is responsible for receiving and handling the bill associated with the transaction. Lastly, the Payer is the entity who holds responsibility for making payment for the goods ordered.

What is Sales Order Entry in SAP?

You can see Sold-to Party and Ship-to Party fields at the top left of the screen just below Standard Order field. One Sold-to Party can have multiple Ship-To Parties. If there are many Ship-To parties associated with one Sold-to Party, a dialog box will pop up in the order screen. You need to select the relevant Ship-to Party which the Sold-to Party has instructed you to ship the products at.

To enhance the accuracy of your search results, you can utilize an asterisk to specify your query and then press Enter to view the desired output.

When there is a single recipient for shipping, the Ship-to Party field will be filled in automatically after pressing Enter.

SAP SD Sales Order Screen Interface in SAP

This section of the Sales Order is known as the line item, where the products to be sold are listed.

How to Include Products in SAP Sales Order

If you select the material and do not enter the quantity before pressing Enter, the system will display a prompt.

SAP Sales Order Incompletion Log

To check if the sales order you have created is complete, navigate to Edit and then select Incompletion Log.

If all the necessary information is filled in, the system will display the appropriate message as required.

Our Sales Order has been finalized (All required information is provided).

Press button to view header details in the sales order.

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The sales order in SAP includes details such as the user who created it, information about the sales organization, distribution channel, and division. It also includes the sales office and group, along with the date of creation and document currency. Additionally, customer group, price list, and sales district information are included in the sales order.

Sales Order Interface – Item

To view the pricing details for a specific material, simply choose that particular line item and click on the “conditions” button.

In this section, you can view the cost of the product that has been chosen.

What is the SAP Sales Order?

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Understanding the sales order order type in SAP

Sales order types in SAP are determined by the specific business processes followed by an organization. The standard SAP order type, OR, is considered to be the most generic and commonly used order type. This order type is typically used for regular sales transactions where goods or services are sold to customers.

In addition to the standard OR order type, there are other types of sales orders available in SAP based on different scenarios. For example, the RE order type is specifically designed for handling returns from customers. When a customer wants to return a product due to various reasons such as defects or dissatisfaction, the RE order type allows businesses to process these returns efficiently.

Differentiating between a purchase order and a sales order

Purchase orders are used by buyers to initiate the purchasing process with a supplier. Sales orders are sent by suppliers to buyers after receiving a purchase order from the buyer – verifying details and the confirmation of the purchase.

Understanding SAP Sales Order Processing

Sales order processing, also known as sales order management, is the flow of steps from customer ordering through to product delivery. Sales order processing touches each step of the purchase and order fulfilment process, including quoting, the financial transaction, order picking and logistics.