The Order to Cash for Fashion ES bundle enables businesses in the fashion, apparel, and footwear industries to execute each task in the logistics chain that begins with creating a sales order for goods and ends with transferring funds party-to-bank.
Once a sales order has been created, users can deploy the bundle's services to allocate and deallocate goods (a procedure whereby specific quantities of ordered goods are reserved by customers for delivery at predetermined times and places), monitor the packaging and delivery processes, create, submit, and manage invoices, collect payments, and perform bank deposits.
In addition to the standard features from the Order to Cash ES bundle (for example, those that enable the management of product characteristics such as pricing and availability), the enhanced enterprise services for the Order to Cash for Fashion ES bundle permit users to account for detailed product attributes, including season, collection, theme, color, size, quality level, country of origin, and prospective delivery location.
In short, this bundle provides customers with an out-of-the-box electronic data interchange between SAP ERP and third-party systems that is as streamlined as it is flexible and transparent, allowing key documents from across the procedural landscape to flow between organizations automatically and seamlessly.
Yet another benefit of this bundle lies in the way organizations can deploy it to develop individual, A2X composite applications, including those intended to simplify order creation by occasional users, such as order creation via a targeted composite or a guided procedure.
The Order to Cash for Fashion ES bundle enables a variety of business processes to be integrated, as well, such as the management of customer consignment stock between SAP Retail and Wholesale and third-party order flexibility.
Order to Cash for Fashion (click to enlarge)
A host of wide-ranging capabilities are available when deploying the services in this bundle. With it, users can:
- Read, create, and change sales orders and sales order items
- Allocate, deallocate, and reserve sales orders
- Sales order allocations can also be read upon demand
- Check for the creation of sales orders by way of confirming pricing and availability
- Send notifications confirming the creation of sales orders
- Create, change, and cancel documents for the movement of goods with reference to sales orders
- Read, create, change, and cancel outbound deliveries with reference to sales orders
- Outbound delivery status can also be viewed at any time
- Send delivery information messages
- Create proofs of delivery
- Read, create, change, cancel, and send customer invoices
The Order to Cash for Fashion ES bundle uses enterprise services to leverage enterprise SOA through communications between SAP ERP and SAP Apparel and Footwear 6.0 (SAP AFS).
The Order to Cash for Fashion ES bundle is intended to benefit all businesses in the apparel and footwear industries, including manufacturers, distributors, and retailers.
The business roles that will use this bundle include:
- Customer service representative
For details on Service Operations, Business Objects and Process Components, please check the ES Workplace.
How To Use This ES Bundle
Building upon the Order to Cash ES bundle, the Order to Cash for Fashion ES bundle both service-enables and supplements the order to cash functionality of SAP ERP even as it opens up a host of possibilities for innovating this fundamental business process. Whereas traditional programming once limited procedural potential, the services in this bundle can be deployed to execute on-the-fly modifications to new and standard procedures, even as it flexibly integrates with third-party systems.
Optimizing the order to cash process is critical, and because of its centrality, gaining efficiency in any phase of this procedure, whether speeding up processing of sales orders, achieving on time delivery, or improving payment collections, can result in a substantially improved revenue stream.
The fashion industry adds additional dimensions to the order to cash process, especially in terms of the level of detail and attributes required to describe products. This ES bundle has been enhanced to handle fashionable products, or products with additional attributes, such as apparel, shoes, or eyewear. These types of products have additional attributes, such as seasonal attributes, size, and color. They may also have quality attributes, first or second grade, or information where the product was made (country of origin). Furthermore, the relationship between business partners is often more complex, with various levels of customers, a need to fine-tune the process to avoid penalties, and to keep customer satisfaction high.
This section will explore a series of use cases for the Order to Cash for Fashion ES bundle. Each scenario will show how different outcomes can be achieved by using the enterprise services in different combinations. While these examples illustrate a few of the ways that this ES bundle could be used, the intention is to show the flexibility and reusability of these business objects and enterprise service operations so that you will have a clearer understanding of how to best deploy them in your own environment.
Please note that the use cases may refer to people invoking enterprise services directly. This helps illustrate how business processes relate to enterprise services, but in fact, the services are invoked through a user interface or via program-to-program communication. This wiki is also a space for you to share knowledge and collaborate with others who are implementing the Order to Cash for Fashion ES bundle.
Use Case 1: Managing Sales Orders
Susan, a chief sales rep for SuperFast!, a manufacturer of athletic apparel and footwear, has just received an order from Ed, the head buyer for the Western Region of ABC Shoes, one of the many major retail store chains that sell SuperFast! products. The order is somewhat complex, including a variety of shoes in different styles and sizes that are needed right away to replenish sold-out stock in numerous stores, along with a partial list of those that ABC intends to feature in the coming season.
Since Superfast! has deployed the Order to Cash for Fashion ES bundle, not only can Susan easily handle this order, but also she can work with orders of any size and scope. These can include orders as simple as those requiring one style and color of shoe in a range of sizes, to those that are extremely complex, including apparel and footwear in a host of styles, colors, sizes, seasons, themes, and prices, to be delivered in part or in whole, at any location, whether it is one or many.
To begin, Susan will simulate the creation of a sales order. Before she actually saves the order's information to the ERP backend, she will first enter it and then invoke the Check Sales Order Creation service operation, which uses the Sales Order business object. At this point, she will receive notification pertaining to each item in the order, along with its respective data fields, informing her as to their status and availability. For example, in this order, ABC requested delivery of a specific style of shoe for the following week. However, according to the system, the shoes cannot be delivered for at least two weeks. Armed with this knowledge, Susan can confer with Ed to see whether he wants to wait for the shoes or instead delete them from the order.
Once Susan has confirmed the order to Ed's specifications, she saves it by triggering the Create Sales Order service operation. Until she has executed this command, the sales order will not be formally saved and stored in the backend.
Later, Ed contacts Susan with some modifications to his order. To review any aspect of the order, Susan can invoke the Read Sales Order_V3 service operation. Should she experience difficulty locating a particular item, she can search for it according to a range of criteria (e.g., color, size, style, etc.) by triggering the Find Allowed Material Variants by Sales Order Item service operation, which also uses the Sales Order business object. She can also deploy this service to find substitutes for shoes that are not available and then discuss them with Ed before finalizing the order. Once she is satisfied that Ed is happy and the order properly adjusted, Susan can update it by invoking the Update Sales Order service operation.
Use Case 2: Managing Allocations
After a sales order has been created and saved to SAP Apparel and Footwear 6.0 (SAP AFS) and an available-to-promise (ATP) check executed, steps must be taken to ensure that the items requested in the order are reserved for delivery in the proper amounts, and at the specified locations and times. The phases that constitute this and any other sales order requirement and stock management is known as the allocation process.
In the immediately preceding case, Ed, the buyer from ABC Shoes, wanted to take instant delivery of various shoes that several stores in the chain had recently sold out, while reserving the other part of his order for delivery near the end of the summer season, in preparation for fall.
Susan, the representative in charge of this order for SuperFast!, can simulate the allocation of a sales order before actually confirming it, in the same way that she simulated the sales order itself before creating it. To begin, she can enter both the quantities and delivery times and locations Ed has specified for each item in the order. Just as SAP AFS notified Susan regarding the status and availability of the items she wanted to include in the order when she originally simulated it, so, too, will the system notify her regarding the status and availability of those items she has just allocated (i.e., reserved) to ABC Shoes. To simulate the allocation and receive the notice, she simply triggers the Check Material Supply and Demand Allocation Creation service operation, which uses the Material Supply And Demand Allocation business object.
Though Ed knew before placing the order that one style of shoe would not be available for immediate delivery, he ordered it anyway. Later, it turned out that only a portion of the amount ordered was available for delivery in two weeks, with the balance being available in three weeks. ABC Shoes, however, is one of SuperFast!'s biggest clients, so Susan wants to please them. It so happens she knows the shoe ABC needs right away was allocated to another client at a later date. Susan also knows she can deallocate the shoes from the other client's order and allocate them to ABC for immediate delivery.
To deallocate the shoes from the previous order, she can invoke the Cancel Material Supply And Demand Allocation service operation. At the same time, she will reallocate the shoes to her second client for delivery at a later date, thus satisfying one and all. The rest of the items in the order can be allocated to ABC according to demand without consequence. When Susan is ready to confirm the allocation of all items in the order, she triggers the Create Material Supply And Demand Allocation service operation.
If at any time Susan needs to review an allocated item, she can search for it by invoking the Find Material Supply and Demand Allocation by Elements service operation. To view the item, she can trigger the Read Material Supply and Demand Allocation service operation. Should she need to modify allocated items, she can do so and then save the changes by invoking the Update Material Supply and Demand Allocation Item service operation.
Use Case 3: Managing Deliveries for Sales Orders
Now that SuperFast! has created a sales order for ABC Shoes and allocated the items in it for delivery at specified times and locations, the sales rep, Susan, is ready to request that the appropriate warehouses pick the stock from the shelves and prepare it for physical delivery.
This process is initiated when a sales rep or clerk invokes the Create Outbound Delivery with Reference to Sales Order service operation, which uses the Outbound Delivery business object.
Once the outbound delivery order has been created, users can review its details at will by triggering the Read Outbound Delivery service operation. Appropriate modifications can be implemented by invoking the Change Outbound Delivery service operation, and a goods issue for the sales order can be created by triggering the Create Goods Movement with Reference service operation. Should the delivery need to be cancelled for any reason, users can invoke the Cancel Outbound Delivery service operation.
Use Case 4: Managing Invoices
The final phase in the order to cash for fashion process entails creating invoices that are then sent to accounting for processing.
In the three preceding use cases, SuperFast! created a sales order for ABC Shoes, allocated the items in the order for delivery, and then shipped the items, which were received on time and in good order. It only remains for SuperFast! to submit their invoice for the products to ABC Shoes, and the transaction will be nearly complete.
To generate the invoice, an agent can trigger the Create Customer Invoice with Reference service operation, which uses the Customer Invoice business object. If at any time the invoice needs to be reviewed, users need merely invoke the Read Customer Invoice service operation to do so. Since invoices cannot be modified once they have been saved in the backend system, changes must be executed by deleting the original invoice and creating a new one. To cancel an invoice, users can trigger the Cancel Customer Invoice service operation.
Future directions for the Order to Cash for Fashion ES bundle may include services for sales contract management and apparel and footwear call-offs. Business-to-business services may also be created for deployment in order to cash scenarios. Lastly, additional ES bundles could be created to support procure to pay and manufacturing for fashion scenarios.
- SAP ERP 6.0
- SAP enhancement package 3 for SAP ERP 6.0
- SAP Apparel and Footwear (SAP AFS) 6.3
- SAP NetWeaver Process Integration (formerly XI)