Ch 5: The Fullfillment Process
What is a shipping point?
A location in a plant from which outbound deliveries are shipped.
What is a centralized system?
A single credit control area manages credit for customers across all company codes in the enterprise.
What is a distribution chain
A unique combination of a sales organization and distribution channel.
What is the definition of a Sales Area?
A unique combination of sales organization, distribution channel, and division.
What is a credit control area?
An organizational level that is responsible for customer credit. Determines customers' creditworthiness, establishes credit limits, and monitors and manages the actual extension of credit to customers.
What is the organizational data relevant to the fulfillment process?
Client, Company Code, Plant, Storage Location, Shipping Point, Sales Area (Sales Organization, Distribution Channel, and Division), and Credit Control Area.
What is sales organization data?
Combinations of sales organizations and distribution channels. Examples: delivering plant, sales units, and minimum quantities.
What is a Division?
Consolidate materials and services with similar characteristics within a unit.
What is a decentralized system?
Maintains multiple credit control areas, each of which manages credit for one or more companies within the enterprise.
What is sales plant data?
Provide details on how the material will be shipped from that plant.
A company (code) can be divided into several Sales Organizations. What is a Sales Organization?
Responsible for the sale and distribution of goods and services for a particular geographical area, such as a regional or national market.
Which organizational elements are combined to make a Sales Area?
Sales Organization, Division, and Distribution Channel
What is a Distribution Channel?
The means by which a company delivers its goods and services to its customers.