When an organization buys something from a vendor, the vendor sends a bill for the product or service. Accounts payable refers to the amount of money paid to the vendor.The procurement department issues a purchase order, and the goods or services are then delivered. The vendor’s invoices are sent to the finance department. The finance department creates the vendor invoice. The finance department is responsible for paying the vendor on time. You may become SAP experts also by doing SAP FICO Online Training from any best institute.
Various steps in the selling process:
The sales team connects with customers and negotiates sales terms and prices.
After receiving an order from a customer, the material department must see enough inventory to fulfill it. If there is not enough material, goods can be purchased from outside suppliers or manufactured in-house by the production department.
The production department receives materials from the material department. The logistics department is in charge of arranging the delivery of finished goods to the specified location by the customer. The customer has received the bill. The customer makes the payment. The finance department handles financial accounting. Every department must ensure that products are delivered to customers by the sales order.
When it comes to sales challenges, how does SAP SD help?
Tracking activities and coordinating with other departments are made more accessible by SAP.
In some cases, a department’s ability to begin a project may depend on another department’s ability to finish theirs. After picking and packing the goods, the transportation department can dispatch the goods for delivery, the finance department can recognize sales and record revenue in the account books only when a bill is issued to the customer, and the accounting department can recognize sales and record revenue in the account books only after a bill is issued to the customer.
As a result, it’s critical to keep track of all the work done across the organization. If departments are to work together effectively, they must exchange timely information. As a result, the company won’t have to waste time coordinating with other departments. As a result, the time it takes to complete the sales cycle will be reduced, resulting in faster business, improved customer satisfaction, and increased sales.
Improved interdepartmental communication is made possible by SAP. All three modules are well-integrated with each other.
Automating tasks reduces the risk of human error:
Each activity must be appropriately documented to keep track of activities performed by various departments. Documentation of the picking, packing, loading and dispatching of goods is an example of this.
As soon as a shipment is sent out for delivery, both the material and finance departments need to keep track of the inventory decrease (COGS).
Customers must be billed, and sales must be recorded in the financial department’s account books. The finance department must reduce its accounts receivable balance when a customer pays. Because it allows documents to be generated without human intervention, Sap lessens the likelihood of human error. If you wish to learn SAP and do SAP FICO Training in Noida, you are highly recommended ShapeMySkills Pvt Ltd institute.
SAP provides better visibility on stock levels, sales order status, and account receivable balances
Documentation of inventory decreases as soon as goods are shipped. Because of this, inventory data is available whenever it is needed. It’s easier to keep tabs on order status now that every sales process step is tracked. The SAP makes it easier to keep track of money owed. When a customer has a pending payment, the report can contact the customer and ask for payment. Don’t think about enrolling for SAP FICO Training in Delhi at ShapeMySkills Pvt Ltd Institute.