From the course: Learning SAP Sales and Distribution (SD Module)

SAP delivery overview - SAP ERP Tutorial

From the course: Learning SAP Sales and Distribution (SD Module)

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SAP delivery overview

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- [Instructor] Once sales have been made our products must be delivered to customers. Let's look at how the process works in the system. Our delivery process in SAP S 4 HANA follows the logical flow of creating an outbound delivery, picking the order, packing and shipping the order, and finally issuing goods to the customer. We'll dive deeper into each step. The delivery process starts with the creation of the outbound delivery document. In this step the shipping point or the physical location where this order will be sent from is determined. A delivery check is performed. This check references the order, the customer and the current stock of materials to see if the delivery is possible. This outbound delivery document also pulls in the physical material master data to determine the weight and dimensions of the shipment. Finally, the delivery route is determined. The second step in this process is referred to as picking. Picking is the physical process of taking goods from storage and moving them to a staging area to be packed. Picking requests refer to delivery documents to determine the material and quantities that need picked from inventory. And the date when picking should begin to meet delivery dates. After an order is picked from inventory, packing begins. During the packing process, the type of packaging is identified and the packing is executed. All of the packed products are then tracked by container in assigned transportation methods. All weight restrictions are checked to ensure that packed products will comply during shipping. And the order is now shipped to the customer. The final step in this process is the goods issue. The goods issue is the activity that marks the legal change in ownership of the products to the customer. There are a few downstream effects of the goods issue in our system. First, stock is reduced by the total delivery quantity. Also, in accounting, the inventory value is decreased while the cost of goods sold is increased. All this information updates in our general ledger. At this point, the delivery process is finished and the status of the shipping documents are changed to reflect this. Our picking, packing, shipping and issuing of the goods is now complete and we can move on to bill the customer. The delivery process as a whole ensures we satisfy the demands of our customers so we can bill on time and ensure a healthy cash flow for our company.

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