GBI Chapter 5 - The Fulfillment Process Vocabulary

Flashcards for GBI Chapter 5 - The Fulfillment Process

Sales Organizations

An organizational unit responsible for the sale and distribution of goods and services for a particular geographical area such as a regional or national market.

Distribution Channel (DC)

The means by which a company delivers its goods and services to its customers. Common distribution channels are wholesale and retail.

Distribution Chain

An organization level which is a unique combination of sales organization and distribution channel. Some master data are maintained at this organizational level.

Division

Grouping of materials and services with similar characteristics.

Sales Area

A unique combination of sales organization, distribution channel and division.

Shipping Point

A location in a plant from which outbound deliveries are shipped. It can be a physical location, such as a loading dock, rail depot, or a mail room. It can also be a designated group of employees.

Credit Control Area

A organizational level that is responsible for credit. Specifically, it determines customers’ credit worthiness, establishes credit limits, and monitors and manages the actual extension of credit to customers.

Sales Organization Data

Data in the material master that is relevant to the fulfilment process and is specific to a sales organization. Examples include delivering plant, sales unit, and minimum quantities.

Sales Plant Data

Data in the material master that is relevant to the fulfillment process which provides details on how the material will be shipped from the plant.

Customer Master Data

Data that are needed to conduct business with customers and to execute transactions that are specifically related to the fulfillment process.

General Data

Data in customer, vendor, material and other master data that are relevant to all processes and organizational levels. Examples include the material number and description, and customer or vendor name, address, and communication information such as phone and fax numbers.

Accounting Data

Data in customer or vendor master that are specific to a company code and include data such as valuation currency, the valuation class, and the price control (vendor master) and payment terms and the reconciliation account (customer master).

Sales Area Data

One of the three segments of the customer master that is specific to a particular sales area. relate to shipping, billing, and partner functions.

Partner Functions

The various roles of customers in the fulfillment process. Examples include sold-to-party, ship-to-party, bill-to-party, and payer.

Sold-to Party

A required partner functions in the customer master that identifies that entity that placed the order.

Ship-to Party

A required partner function in the customer master that identifies the entity that actually receives the shipment.

Bill-to Party

A required partner function in the customer master that identifies the entity that that will receive the invoice for the customer order.

Payer

A required partner function in the customer master that identifies the entity that will pay the invoice.

Customer-Material Information Record

A record comprised of master data specific to one customer and one material.

Pricing Conditions

Master data that companies use to determine the net price of products. Examples of conditions include gross price, discounts, surcharges, and freight.

Output Conditions

Rules that determine how communication between an organization and its customers and vendors is facilitated. The rules determine the transmission times (when), the output medium (how), the various output types (what), are communicated to the recipient (who).

Credit Management Master Record

An extension of the master record that includes data relevant to managing credit for that customer.

Inquiry

A customer’s request for information/quotation regarding a material or service.

Quotation

A response to a customer inquiry regarding the ability to sell the materials under specific terms and conditions.

Outline Agreements

Binding agreements between a customer and vendor to purchase specific quantities or values of materials. Types of online agreements include contracts and scheduling agreements.

Contracts

A type of outline agreements where a customer agrees to purchase materials of a certain value over a certain time period subject to specific terms such as prices, payment, and shipping.

Scheduling Agreement

A type of outline agreements where a customer agrees to purchase a specific quantity of materials over a certain time period subject to specific terms such as prices, payment, and shipping.

Sales Order

An internal document used to manage and track the order as it flows through the process.

Item Category

Part of the data in the line items of the sales order, determine how the item is handled with regard to the pricing, billing, and shipping. Examples include standard item, text item and free-of-charge item.

Schedule Lines

Detailed data associated with line items in sales order that specify delivery quantities and dates for that for that line item.

Availability Check

A procedure to determine whether the required materials are available or will be available when needed- in time for the desired date (fulfillment) or for use in production.

Backward Scheduling

A procedure used in fulfillment to determine when necessary tasks (e.g., material staging, transportation planning, loading, and goods issue) needed to fulfill a customer order must occur.

Transfer of Requirements

The transfer of data from the sales order to the material planning process to plan the procurement.

Delivery Document

Document created to authorize the delivery of customer orders that are ready to be shipped.

Post Goods Issue

A step in the fulfillment process that indicates that materials have been shipped out of the plant.

Document Flow

The linked set of documents related to a sales order. Includes sales order, delivery document, and invoice.