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Marketing Information Systems and the Sales Order Process
During sales order processing, the SAP ERP system checks the accounts receivable
tables in the SAP ERP database to confirm the customer’s available credit. SAP ERP adds
the value of the order to the customer’s credit balance, and then compares the result to
the customer’s credit limit (also available in the database). If the customer has sufficient
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credit available, the order is completed. If not, the SAP ERP system prompts sales
personnel to reject the order, call the customer to check on recent payments, or contact
Accounting to discuss any extenuating circumstances.
Inventory Sourcing
When recording an order, the SAP ERP system checks the company’s inventory records
and the production planning records to see whether the requested material is available
and can be delivered on the date the customer desires. This available-to-promise (ATP)
check includes the expected shipping time, taking into account weekends and holidays.
In the SAP ERP system, availability is automatically checked, and the system can
recommend an increase in planned production if a shortfall is expected. SAP also keeps a
record of all open orders, so even if product for a particular order is still in the warehouse,
the system will not allow it to be sold to another customer.

Delivery
In the SAP ERP system, creating a delivery means releasing the documents that the
warehouse uses to pick, pack, and ship orders—rather than the traditional definition of
transferring goods. The process allows deliveries to be created so the warehouse and
shipping activities are carried out efficiently (for example, combining similar orders for
picking, or grouping orders based on shipping method and destination).
Once the system has created the documents for picking, packing, and shipping, the
documents are transferred to the Materials Management module, where the warehouse
activities of picking, packing, and shipping are carried out.

Billing
Next, the SAP ERP system creates an invoice by copying the sales order data into the
invoice document. Accounting can print this document and mail it, fax it, or transmit it
electronically to the customer. Accounting records are also updated at this point. To
record the sale, SAP ERP debits (increases) accounts receivable and credits sales, thus
updating the accounting records automatically.

Payment
When the customer sends in a payment, this payment must be recorded in the SAP
system. If the payment is made electronically, it can be automatically processed by the
SAP ERP system, which records the payment as an electronic sales order document,
debits the cash account, and credits (reduces) the customer’s account balance. If the
customer sends a check, a clerk must manually enter the payment information, at which
point the system updates all information related to the sale. The timely recording of this
transaction has an effect on the timeliness and accuracy of any subsequent credit checks
for the customer. With its current systems, Fitter has had a problem with getting accurate
credit checks, frequently blocking orders for customers that are within their credit limit,
while granting credit to other companies beyond what is advisable.

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