SAP SD Questionnaire for Scoping and better understanding of Business Scenario
In our day to day life, we face so many challenges which we handle bravely and resolve it, but a little help can do a lot for us.
Same as in SAP scoping and understanding the business scenario and client’s requirement is one of the critical part of Implementation or Rollout or Support projects, and if it is not collected or understood perfectly then it could create lot of trouble for us as well as for the client.
I have tried to created a set of Sales and Distribution questionnaires which may be helpful while scoping or requirement collection.
Questionnaire Topics Structure
- SD ORG Structures
- SD Process
- Complaint process
- Variant Configuration
- Make to Order
- Third Party
- Inter Company Stock Transfer
- Stock Transfer
- Reports and forms
1 SD ORG Structures
- How many Legal entities do you have (company codes)
- Selling entities (Sales organisation)
- Product line (divisions)
- Medium of sales (distribution channel)
- Number of Sales offices and responsible area of selling
- Grouping of sales employees (sales groups)
- How many manufacturing facilities do you have? (plants)
- Number of dispatching locations (delivering plant/ storage location)
- How many dispatching points in each plant– shipping points
- What is the combination of product line-selling entities and medium of sales
- How do you group your customers account wise (DOMESTIC/EXPORT/WHOLESALES)
- What types of business partners do you have (Ordering /shipping/payer/billing/sales personnel/ sales employee), If multiple partners are there then elaborate the scenario
- How do you categorise the customers by industry, sales region, sales district, sales office?
- Do you have special pricing for a group of customers? Customer group and price group
- Do your customers agree for partial delivery? Do you have concept of delivery priority?
- Do you have POD concept?
- Do you have tolerance concept? How much tolerance does the customer permit?
- What are the payment terms? Inco terms?
- What is your tax structure for the customer?
- Do you have credit limit to customers? What type of credit limits (centralised or decentralised)? Payment terms or value based?
- What are the actions once credit limit is surpassed, do you block? Order or delivery? Explain in brief the credit limit process.
- How do you determine the credit limit, sales area wise or customer wise?
- How do you price your product (pricing components involved in pricing the product)
- Pricing methodology for sales process (domestic / export /cash sales)
- Do you maintain pricing records for the products? (customer / material specific/ price list/ scale price)
- What is your discount structure? (based on customer / material/ group/ condition exclusion)
- What pricing information do you capture for statistical purposes? (I.e., it does not alter the price)
- Tax structure for material?
- Do you have different UOM for selling and SKU?
- How do you group your products?
3 Sales process
What type of pre-sales activities do you have? (Inquiry /Quotation)
- What types of order processing do you have? (domestic/ export/ institutional/ cash / on-line)
- Explain in detail order scenario
- Whether order is created with ref to quotation/ inquiry?
- How do you receive order (FAX/Mail/S Rep/Telephone)?
- How do you determine customer at SO level?
- Decide ship to party from Customer master or at order level?
- Do you have multiple ship to party for single order?
- What all information do you capture at SO level? Which are mandatory to complete the order?
- Is availability check done? Explain the scope (Collective or individual), Do you block a sales order if the availability check fails?
- Do you record minimum delivery quantity. If so, what happens during a sales order if a violation occurs?
- Do you send letter of confirmation to customers, what media?
- Do you want to save the incomplete SO?
- Do you have company defined status codes?
- What reason would an order or line item be rejected?
- For sales documents, what information do you consider required and would like to appear on an in-completion log if missing?
- Product Proposals: If a customer routinely orders the same product or group of products, do you have a process that helps you simplify your order entry? If so, how does that process work? For example, do you record the product proposals by Customer, Customer group, or another grouping?
- Do you process backorders?
- Backward and forward scheduling??
- Do you have lead time concept.
- If the order is blocked for credit limit, what is the % of deviation and grace period so that it cannot be blocked again.
- Do you have any sales order approval by higher authorities (status profile).
- Do you want the credit check performed during entry of each line item or only when the document is saved??
- If you process Inter-Company orders, do you charge the inter-company based on a specified amount or on a percentage of the item price?
Do you have the concept of sales commission? If yes how it works
- If a product is packaged differently for a special event (e.g., Thanksgiving), do you want the system to automatically substitute the special packaging when the product is ordered?
- What are the different reasons you would substitute one product for another or one packaging for another?
- Do you want the originally ordered product or the substituted product information to be printed on the output?
- Do you want the product substitution to occur automatically or should Data Entry personnel be offered a selection screen for substitutable products?
- Do you want Data Entry personnel alerted when a product is automatically substituted?
- Do you want the substituted product to be listed as a sub-item to the originally ordered product or should the substituted product completely replace the original product?
Material Listing and exclusion
- Do you require that certain products or customers must be pre-specified on a “Material List” before a customer can place an order for the material.
- What Master Data fields will make up the key index for the “Material Listing” table?
- Do you require that certain products or customers must be pre-specified on a “Material Exclusion” table to block selling that material to the customer?
- What Master Data fields will make up the key index for the “Material Exclusion” table?
- Do you have the concept of free goods (inclusive and exclusive)
- Do you have any schemes like sales promotions
Bills of material
- Do you have a products based on components (Laptop and charger/bag etc)
- How do you explode the bill of material (Delivery and pricing at what level)l
- Do you maintain factory calendar for Plant and dispatching point
- Do you have single dispatching points for all plants or plant specific?
- Do you check the availability of product during delivery time? If yes, then explain the scope of Availability
- How are freight charges handled? What shipping documents are generated?
- For delivery document what information do you consider required and would like to appear on an incompletion log if missing?
- What happens when the Delivery Quantity exceeds the Order Quantity?
- Do you use batch or serial number?
Shipment Document with transportation functionality
Billing and Invoicing
- Do you combine multiple deliveries in single invoice?
- Do you utilize periodic billing by for rental contract type documents?
- Do you utilize milestone billing for make to order type documents?
- How do you recognize price changes that occur between the Sales Order and Billing time frame?
- What are the reasons you would ever block a delivery from creating an invoice? (POD confirmation required). How do you track the delivered material in transit?
- What types of text are required on your billing documents?
- How you are processing the incorrect invoices (Cancelling/correction/ cr/dr memo)
- Do want to send invoice list periodically to customers?
- Do you offer rebates to customers? If so what type (Value, volume or QTY based)?
- Time interval for settlement cycle monthly basis, quarterly , yearly ( fully or partially)
- How do you book your sales revenue and deductions?
- How do you book your TAX?
Outline agreement :-
- Do you have contracts with customers? What are the types (Service / Quantity/ Rental/ Value)?
- What is process to be followed once the target is achieved / Validity ?
- What all information do you capture in the contract?
- Can your customer in the order be different than your contract customer?
- Do you have a scenario of periodic delivery for customers?
- What all information do you capture in the agreement?
- Do you have consignment process?
- Do you allow customer to keep stock but the ownership of stock remain with the company?
- Does the customer place the order for material or do you ship on regular basis.
- What method you are following for determining when to bill the customer for consumed material.
- How will you be notified when customer/consignee has sold the material?
- Are unused or unwanted materials returned to your location from consignment location?
- What is your consignment return delivery process?
- Who will bear the fright charges for the consignment?
- Do you have consignment scenario where customer directly order company for material, and delivery is done by the consignee point, and invoice is raised by the company directly to the customer?
Free of charge or Sample orders
- How do track the value of free/sample good? (in terms of cost or sales revenue)
- Who will bear the freight and packing charges (in case of sales revenue)
Rush/ Cash orders
- Do you have scenario of cash / rush sales?
- Are they regular or one time customer?
- Do you have employee sales? How do you manage the employee sales, by creating customer code for all employee or one time customer?
- Do you want to book the revenue directly to petty cash or cash clearing?
4 Complaint process
- Explain the return process
- Whether returns are against invoice or order. Is it mandatory or optional?
- What are the reasons for returns
- What are the information captured in return request.
- How do you process return material (thru quality or rework or scrap or directly to unrestricted)
- Are you going to give replacement(FOC) or a credit memo ( based on delivery or order)
- Do you want approval for credit memo in case of return?
- How do you track returnable packing material?
- Is there any scenario of price difference? If any difference then do you refer main invoice or not?
- How do you release price settlement request? (authorisation or Dr/Cr block)
5 Variant Configuration
- Do you have configurable material?
- Do you use variant for your materials (eg. Automobile industry)?
- What are the characteristic and its values. How do you determine the pricing for the variant material?
- Do you have the variant material with several components, if yes then how do you process it?
6 Make to Order
- Do you have a make to order scenario?
- If yes manufacturing or assembling?
7 Third Party
- Do you sell goods that you purchase from a vendor? Are these materials always purchased or just on certain orders?
- Does the vendor send the goods directly to customer or it comes to your store and dispatching to customer?
- Do you send rejection letters to vendors losing bids? Are quotes selected for purchase order creation?
- Will shipping notification create expediting documents?
- Do goods receipts have storage location determination?
- Is there blocked stock quality inspection, or other types of received stock?
- Do you charge third-party accounts right away or make separate postings?
- Are you going to raise the customer invoice without booking the vendor invoice
8 Inter Company Stock Transfer
- What is the process of stock transfer?
- Do you bill inter company stock transfer?
9 Stock Transfer
- What is the process of stock transfer (one way or two way)
10 Reports and forms
- Proforma invoice
- Sales order acknowledgement
- Delivery note
- Picking/Packing list
- SO list
- Pending SO’s
- Sales Register
- Price report
- Delivery Monitor
This post may or may not be in detail or in depth but I hope this will help many consultants for startup of understanding the Scoping and Requirement Collection’s basic questions.