ERP - Sales department SD

14 important questions on ERP - Sales department SD

What is the difference between an inquiry and a quotation?

An inquiry is completely free and not binding while if a supplier sends a quotation of the price to a certain customer, this product price is binding for some time and the customer cn buy it at this price.

What are the steps of the generic sale process?

The selection process is not binding yet and exists of 3 steps:
1. Generate leads
2. Opprtunities: Discover market potential, initiate activities and create awareness
3. Proposal: Questions of customers , proposal and possible contract

The next steps are part of the transaction process which is binding, it consists of:

1. First delivery: Order and deliver it, pay attention to good supplier score at the new customer
2. Repeat deliveries: Solid win-win relationship for both companies.

What is a credit check?

Before a sales order is done, the system will alert the sales rep about the customers credit situation. An SPL-Check ( Sanctioned party list)  is also done= a black list shows the companies that are sanctioned and to whom who should not sell products to.
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How are delivery dates determined in erp?

When an order is created you must enter a requested delivery date for the order or each line item. The system will then determine a delivery timeline that will be used when determining material availability. The systeme will determine this date by forward and backward scheduling rules you determine.

What are the 2 types of scheduling timelines?

MTS= Make-to-stock or backward scheduling: These products are already in stock. This means the necessity of products is calculated from the requested delivery date to the order date. (can of beans)

MTO= Make-to-order or forward scheduling: Forward scheduling is planning the tasks from when a product is ordered to determine the due date. (car)

When does the shipping route & route determination begin?

Whenever a sales order is created, the system starts to determine the shipping point from where the materials will go to the customers location.

What is a post goods issue?

An event that indicates the legal change in ownership of product.

- It reduces the inventory and enters the COGS.
- Automatically updates the general ledger acount.

This ends the shipping process and updates the status of the shipping documents.

What is the definition of master data?

Information that is put 1 time in the system by a person who has that responsibility in his function and can only be changed by a person with the same responsibility or function.

In which 4 categories is the SD Master data categorised?

1. Customer data
2. Material master data
3. Sales conditions master data
4. Output master data

What is the customer master data?

Contains all the info that is necessary for processing orders, delivering, invoices and customer payment.

It exists of 3 layers:

- The general info layer: Name, address, communication
- Company code: Acc mgmt, payment and bank if in other country
- Sales area: Sales office and currency

!! One company must have only 1 customer number in the system but can have multiple delivery adresses!!

What does the material master data contain?

All info necessary to manage about a material.

- basic data: Name of item/weight
- Sales data: Sales characteristics ( per pallet)
- Purchasing data: Which purchase groups will I get my materials from?
- Mat. Plan. Data: MRP= delivery days (PP)
- Forecasting data: not often used but is special prodction needed for specific events.
- Storage data= Where do we store them?
- Quality data: Specific quality inspection steps ( exact color, steel of a product)
- Accounting data: Balance sheet and Profit & loss account-link
- Controlling data: " Who has spend the money?" Cost & profit center link.

Why is the customer and material data so important for the accounting view of the org?

At the moment of scanning the product in/out of the warehouse, the P&L sales acccount, linked to the product will be hit.

This means that the sales will be automatically booked when the scanning takes place.

What is in the sales conditions master data?

- Price
- Surcharges
- Discounts
- Feights
- Taxes

What is the billing process?

A document that is created by taking data from the sales order and/or delivery document. This is used to generate the customer invoice and will update the customer's credit status.

Will create a debit posting in the customer-sub-ledger and credit your revenue account.

Now sales process is passed over to financial dep.

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