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The Order to Cash with CRM ES bundle allows businesses and their partners to support the most basic business process of all: order-to-cash. The order-to-cash process subsumes everything from the order, packaging, and delivery of goods and services to depositing the money in the bank.

The Order to Cash with CRM ES bundle provides a wide variety of enterprise services that can be used to build flexibility and innovation into this important process.

Three Approaches to Integrating Order to Cash

This ES bundle supports three basic approaches to integrating and automating the order-to-cash process:

  • B2B. Companies can use enterprise services in this bundle to provide seamless integration of the order to cash process with key customers (e.g., customers with a high volume of business), thus providing a highly efficient integration with important customers. See use case 1 for details.
  • A2X. Companies can use enterprise services in this bundle to build individual composite applications and customized user interfaces that will help them customize and innovate their order to cash processes. See use case 2 for details.
  • A2A. Companies can use enterprise services in this bundle to build integration with legacy and third party applications that will help to reduce costs and order cycle times and to improve overall order experience. See use case 3 for details.

Order To Cash with CRM (click to enlarge)

Billing in the Order to Cash with CRM Bundle

CRM Billing is included as a process component in the Order to Cash CRM ES bundle. Similar to the order, it offers A2X (aka UI) and A2A services within the bundle. Though a broad range of use cases can be supported, some of the primary goals for these services are supporting convergent billing scenarios, alternative UI scenarios, and stand-alone scenarios involving for example a third-party financials system. For example:

  • Standalone order management systems can be integrated with CRM Billing, enabling creation of a convergent bill that includes charges from multiple transactional systems. See use case 4 for details.
  • CRM Billing information can be integrated with third-party financials. See use case 5 for details.

Convergent billing allows order items from other legacy order systems to be billed via CRM. The convergent capability enables a company to bill goods and services from different transactional systems and merge these bills on a single invoice for the customer.

The stand-alone capability allows integration of CRM Billing with non-SAP financials systems. This capability allows a company to support much more flexible deployment options, particularly in merger and acquisition scenarios involving multiple systems.

In order to complement these flexible deployment scenarios, a comprehensive set of A2X services allows a company to have its own view on the billing process components or on the billing documents. For example, a company could provide a custom view on the CRM billing document from a legacy order management system in the context of a convergent billing scenario.

The Order to Cash with CRM ES bundle leverages enterprise SOA by enabling communications between SAP CRM, SAP ERP, and, if desired, third-party applications.

Audience

Managers, clerks, salespersons, system administrators and anyone who uses SAP CRM for sales transactions will find this ES bundle valuable.

For details on Service Operations, Business Objects and Process Components, please check the ES Workplace.


How To Use This ES Bundle

The bundle is designed to serve customers who are using SAP CRM for order management and replicating sales transactions from SAP CRM to SAP ERP via CRM Middleware. Using enterprise services, it will be easier to tailor the scenario to achieve customer-specific results.

Users would typically have to be trained in the use of CRM and often ERP to carry out their day-to-day work. Using the A2X enterprise services in this bundle, composite applications can be built to:

  • Find and display products and business partners in CRM
  • Simulate, capture, change, or cancel an order in CRM
  • Create or cancel an outbound delivery and goods movement in ERP
  • Trigger invoicing or update or cancel an invoice in CRM
  • Release invoices to accounting in ERP

This ES bundle also features application-to-application (A2A) enterprise services that can be used to:

  • capture, change, or cancel sales orders
  • enable invoice creation from external order systems
  • support accounting postings to external financial systems

In addition, as mentioned earlier, the ES bundle supports a B2B scenario in which customers send purchase orders from a purchasing system directly to SAP CRM, which creates a sales order and sends back a purchase order confirmation, all without user intervention.

The following series of use cases for the Order to Cash with CRM ES bundle 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. This wiki is also a space for you to share knowledge and collaborate with others who are implementing the Order to Cash with CRM ES bundle.

Use Case 1: Business-to-Business Use of Order to Cash with CRM

Businesses often integrate at an application-to-application level with key suppliers, enabling rapid processing of orders without user intervention. A customer sends in a purchase order electronically, which becomes a sales order in the supplier's system, a sales order that references the purchase order number from the customer. Note that the enterprise service names in this scenario reflect the supplier's side of the interaction and the business process that follows in the supplier's system.

This use case describes a scenario, involving two companies integrated at an application level where the first company (the customer) sends a purchase order to the second company (the supplier). The scenario begins with the customer's system sending the supplier's system a purchase order, which invokes the Create Sales Order enterprise service in the supplier's system. SAP CRM then invokes the Confirm Sales Order enterprise service, which confirms the creation of the sales order in SAP CRM and sends back a purchase order confirmation message to the customer's system. Note how the purchase order from the customer is mapped to a sales order in the supplier's system. These documents mirror one another. From the customer's perspective, it's a purchase order; from the supplier's perspective, it's a sales order.

In addition to sending purchase orders, the customer's system can also send a purchase order change or cancellation to the supplier if need be. When the customer's system sends a purchase order change, this invokes the Change Sales Order enterprise service operation in the supplier's system. Similarly, sending a purchase order cancellation invokes the Cancel Sales Order enterprise service operation in the supplier's system.

The following table summarizes these steps and the associated enterprise services:

Step

Enterprise Service Invoked

Step 1: Customer's purchasing system sends purchase order to supplier who is running SAP CRM

Create Sales Order

Step 2: SAP CRM confirms creation of the sales order and sends a purchase order confirmation message back to customer's system

Confirm Sales Order

Use Case 2: Creating a Sales Order from a User Interface

This use case describes a scenario where a user is able to manage sales order data in SAP CRM from a user interface in a composite application or third party software. In this example, a company has built a composite application to automatically scan and save order documents received via fax as a digital document and to provide a user interface for sales representatives to key-in sales orders in SAP CRM using the digital document. Frequently such faxed orders can be used to fill in some of the fields in the sales order automatically, but such input must be checked by sales representatives to ensure that software that translated the order form from a fax into a sales order filled in the data correctly.

The scenario begins with a sales representative receiving a fax document that has been saved as a digital document. The sales document does not show a valid business partner, and the sales representative knows who faxed the order. The sales representative first searches for the customer who sent the fax, which invokes the Find Business Partner Elements by Elements enterprise service. The sales rep selects a customer from the list, and if needed looks up detailed information for this customer, which invokes the Read Customer enterprise service. She then searches for the desired product, which invokes the Find Material Basic Data by Elements enterprise service. Again, she selects the product from the list, and if needed looks up detailed information for this product, invoking the Read Material enterprise service. She fills in the remaining order details, adding other products if desired. (Note - The product proposal functionality from the Interactive Selling ES bundle could be reused in a composite involving an interactive session between the sales representative and customer, suggesting possible companion products or upselling). She finalizes the sales order and saves it, which invokes the Check Sales Order Creation enterprise service, which returns a proposed price for the order as well as any errors. The sales rep makes any needed modifications and then confirms the order, which invokes the Create Sales Order enterprise service.

The following table summarizes the steps and the associated enterprise services used by this bundle to create a CRM Sales Order:

Step

Enterprise Service Invoked

Step 1: Search for the customer

Find Business Partner Elements by Elements

Step 2: Display customer details

Read Customer

Step 3: Search for a product

Find Material Basic Data by Elements

Step 4: Check the product details

Read Material

Step 5: Enter the details of the sales order and save it

Check Sales Order Creation

Step 6: Create the sales order

Create Sales Order

In addition to creating sales orders, it is also possible to change and cancel sales orders using the Change Sales Order and Cancel Sales Order enterprise service operations respectively.

A sales representative gets a call from a customer saying that he wants to change his order and expedite the delivery. The sales rep opens the composite and searches for the sales order, which invokes the Find Sales Order Basic Data by Elements enterprise service operation. The sales rep selects the sales order from the resulting list, which invokes Read Sales Order_V1 followed by Read Sales Order Item List to get the details of the sales order. The customer wants to change the quantity for a particular item, so the sales rep makes the change and saves the sales order. This invokes Update Sales Order Item. The composite would then invoke Check Sales Order Update followed by Update Sales Order.

The following table summarizes the steps and the associated enterprise services used by this bundle to change a CRM Sales Order:

Step

Enterprise Service Invoked

Step 1: Search for the sales order

Find Sales Order Basic Data by Elements

Step 2: Display sales order

Read Sales Order_V1

Step 3: Display details of sales order

Read Sales Order Item List

Step 4: Change the quantity

Update Sales Order Item

Step 5: Save the changes

Check Sales Order Update

Step 6: Change the sales order

Update Sales Order

Use Case 3: Creating a Sales Order from an Application

This use case describes a scenario where sales order data in SAP CRM is managed from a legacy or third party application. In this example, a company has built a custom e-commerce store to capture sales orders which are then passed on to SAP CRM.

The scenario begins with an online order basket containing multiple products that is ready to be checked out. The e-commerce application invokes the Check Sales Order Creation enterprise service to obtain the price and tax total for the order and to confirm whether any errors exist in the order. The e-commerce application displays this information to the Internet customer, who provides payment details and confirms the order. At this point, the e-commerce application invokes the Create Sales Order enterprise service to create the sales order in SAP CRM.

In addition to creating sales orders, it is also possible to change or cancel sales orders using the Change Sales Order and Cancel Sales Order enterprise service operations respectively.

The following table summarizes these steps and the associated enterprise services:

Step

Enterprise Service Invoked

Step 1: The Internet customer enters order details and submits them

(No enterprise service is invoked during this step)

Step 2: The e-commerce application tells SAP CRM to check creation of the order

Check Sales Order Creation

Step 3: The Internet customer enters payment details and confirms the order

(No enterprise service is invoked during this step)

Step 4: The e-commerce application tells SAP CRM to create the sales order

Create Sales Order

Use Case 4: Invoicing with CRM Billing

Companies frequently have standalone order systems. In this use case, the company wants to bill for copy machine supplies and copy machine usage on a single bill. The copy equipment provider uses one legacy order system for copy supplies, and a second legacy order system for copy machine usage. The company would like to produce one bill per customer from SAP CRM.

The CRM Billing application has been service enabled with the primary goals of supporting convergent billing and stand-alone billing scenarios, as well as alternate UI scenarios.

Convergent billing allows order items from other legacy order systems to be billed via CRM. The convergent capability enables a company to bill goods and services from different transactional systems and merge these bills on a single invoice for the customer.

Each of the two order management systems sends its billing information to SAP CRM by invoking the Maintain Customer Invoice Request as Bulk enterprise service operation, which uses the Customer Invoice Request business object. This creates one or more entries in the CRM billing due list, as shown in Figure 1.

Figure 1. CRM Billing Due List (click to enlarge)

SAP CRM sends back a confirmation that it created the invoice requests, invoking the Confirm Customer Invoice Request as Bulk enterprise service operation. If there were any changes or cancellations to the orders prior to billing, the respective order management system could invoke either the Maintain Customer Invoice Request as Bulk enterprise service operation for changes or the Cancel Customer Invoice Request as Bulk enterprise service operation for cancelations.

From this point, the customer could use the standard CRM user interface to complete the billing process. Alternatively, the billing process could be orchestrated from another application using some of the additional enterprise service operations. The rest of this usecase assumes that an third party application is orchestrating the process.

The clerk would then need to process the billing due list, which converts the invoice requests into invoices. This can be done by invoking the Request Invoicing as Bulk enterprise service operation, which results in the creation of the invoice documents and uses the Customer Invoice business object.

If desired, SAP CRM can confirm the creation of the invoices, by invoking the Notify of Customer Invoice as Bulk enterprise service operation, and puts them in a temporary area where the billing clerk can look them over before releasing them to Accounting (this would require that CRM Billing be set-up in such a way that the invoices are initally blocked from transfer to accounting).

The billing clerk then looks at as many of the invoices as needed to spot check them, selecting them from the list, which invokes the Read Customer Invoice enterprise service operation. Once the clerk feels confident that the invoices are ready, he releases them to the accounting system, which invokes the Release Customer Invoice enterprise service operation. Once the invoices have been successfully released to the accounting system, SAP CRM confirms that it will release the invoices by invoking the Notify of Invoice as Bulk enterprise service operation to inform the order management systems that invoices have been created.

The following table summarizes these steps and the associated enterprise services:

Step

Enterprise Service Invoked

Step 1: The order management system (or systems) send a message to request creation of invoice requests (which results in a CRM Billing Due List)

Maintain Customer Invoice Request as Bulk

Step 2: SAP CRM confirms creation of invoice requests

Confirm Customer Invoice Request as Bulk

Step 3: The billing clerk requests that the invoice requests be converted into invoices, processing the CRM Billing Due List.

Request Invoicing as Bulk

Step 4: SAP CRM confirms the creation of invoices and puts the invoices in a temporary space for confirmation of data

Notify of Customer Invoice as Bulk

Step 5: The billing clerk spot-checks the invoices

Read Customer Invoice

Step 6: Once the billing clerk feels confident that the invoices are accurate, he or she releases them

Release Customer Invoice

Step 7: SAP CRM confirms the release of the invoices by sending a message to the third-party order management system

Notify of Invoice as Bulk

Use Case 5: Deploying CRM Billing with Third-Party Financials

In this use case, SAP CRM handles billing, but the further processing of these invoices from an accounting standpoint is handled through third-party financial software.

To start, the billing clerk creates the invoice requests by invoking Maintain Customer Invoice Request as Bulk. SAP CRM then creates invoice requests, sending back a confirmation by invoking Confirm Customer Invoice Request as Bulk.

Some of the invoices were blocked. This can occur because a bill is flagged by the system as anomalous and perhaps wrong or because procedures require that a credit memo (essentially an invoice request with a negative amount) be blocked and manually approved to ensure that it is a valid payment to the customer. In this use case, blocked invoice requests for a particular customer are examined.

The clerk then searches for invoices to release She can use various criteria for doing this:

  • Billing Document Number (range)
  • Source Document Number (range)
  • Billing Unit (the organization that issues the invoices)
  • Billing Date
  • Sold-to Party
  • Payer

For example, she might decide to release all blocked invoices that fall in a certain billing document range so that she can review them.

To do this, she invokes the using the Find Customer Invoice Request by Elements enterprise service operation. The clerk then reviews each blocked invoice request, unblocking it if it is indeed valid. This invokes Release Customer Invoice Request.

Now the invoice requests can be turned into invoices, and the clerk invokes Request Invoicing as Bulk to release the invoice requests. SAP CRM returns a confirmation by invoking Notify of Customer Invoice Request, and places the invoices in a temporary workspace where the clerk can spot check them.

The clerk then spot checks invoices, selecting them from the list which invokes Read Customer Invoice to display the invoice details. She then releases the customer invoices to accounting by invoking Release Customer Invoice. SAP CRM sends the invoices to the third-party financial system by invoking the Notify of Invoice as Bulk enterprise service operation.

The following table summarizes these steps and the associated enterprise services:

Step

Enterprise Service Invoked

Step 1: Start invoice process, initiating creation of invoice requests (CRM Billing Due List)

Maintain Customer Invoice Request as Bulk

Step 2: SAP CRM confirms creation of the invoice requests

Confirm Customer Invoice Request as Bulk

Step 3: Check for blocked invoice requests

Find Customer Invoice Request by Elements

Step 4: Release desired requests for invoicing

Release Customer Invoice Request

Step 5: Create invoices (process the Billing Due List)

Request Invoicing as Bulk

Step 6: CRM confirms creation of invoices; puts invoices in a temporary space for confirmation of data

Notify of Customer Invoice Request

Step 7: Clerk performs spot-check of the invoices

Read Customer Invoice

Step 8: Release the invoices for further processing

Release Customer Invoice

Step 9: CRM sends the invoices to the third-party financials

Notify of Invoice as Bulk

Future Directions

Future directions for this ES bundle will be market-driven.

System Requirements

Related ES Bundles

  • The Credit Management ES bundle contains enterprise services for checking customers' credit.
  • The ATP Check ES bundle provides additional enterprise services for checking availability in SAP SCM or SAP ERP. (SAP SCM offers more advanced functionality for ATP check.)
  • The Availability Issue Resolution and Backorder Processing ES bundle provides service professionals with an ability to resolve backorders through reassigning stock from another order or by asking a supplier to drop-ship directly to a customer. This ES bundle supports scenarios involving SAP CRM and SAP SCM as well as scenarios involving SAP ERP and SAP SCM.
  • The Order to Cash ES bundle is an SAP ERP ES bundle that handles order management scenarios in which the sales order and the invoice are created directly in SAP ERP.
  • The Interactive Selling ES bundle is an SAP CRM ES bundle that provides enterprise services to support guided selling by proposing products to customers and by providing real-time information on product configuration. This bundle also includes services to manage price master data in SAP CRM.

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